Kankakee Times

The Kankakee City Council met Monday, Aug. 15.

The Kankakee City Council meets at 7 p.m. on the first and third Monday of each month in Council Chambers at the Donald E. Green Public Safety Center, 385 E. Oak St.

Here is the meeting agenda as provided by the Kankakee City Council:

CITY OF KANKAKEE

CITY COUNCIL MEETING

AUGUST 15, 2016 7:00 P.M.

MAYOR EPSTEIN: I’d like to call the meeting to order. We do not have a prayer this evening, but I would like to extend our deepest condolences to the family of Bill Yohnka. His father passed away yesterday unexpectedly. Ah, very, very sad. Dennis was a really nice person who had a lot of.supported our community. He supported the children in our community. His stories were always very uplifting in The Daily Journal and that’s going to create quite a void, I believe. So, our sympathies to Bill and his family. I do not know.I’m sure they do not know yet what the arrangements are, but I know it will be in the newspaper. So, again our sympathies go out to him. Ah, we will be leading the Pledge. Council.

CITY COUNCIL AND ALL: Pledge of Allegiance

MAYOR EPSTEIN: Thank you. Roll call.

CLERK DUMAS:

PRESENT: Tetter; Brown; Curtis; Baron; Wells-Armstrong; Tall; Faford; Swanson; Crawford; Osenga; O’Brien; Gall; Kennedy; Davidson (14)

MAYOR EPSTEIN: Department Heads.

CLERK DUMAS:

PRESENT: Regnier; Young; Kubal; Bohlen; Power; Simms; Tyson; Cross; Bertrand; Schmitz (10)

ABSENT: Yohnka (1)

MAYOR EPSTEIN: Moving on. Motion to approve the minutes of the August 1, 2016, meeting.

ALDERMAN OSENGA: Motion to approve, Mayor Epstein.

ALDERMAN CRAWFORD: Second.

MAYOR EPSTEIN: Motion by Alderman Osenga, seconded by Alderman Crawford. Are there any additions or corrections to those minutes? Hearing none, all those in favor, aye. Opposed, same sign.

MOTION TO APPROVE CITY COUNCIL MEETING MINUTES OF AUGUST 1, 2016

MAYOR EPSTEIN: The minutes are approved. Moving onto Communications. I would accept a motion to combine A, B, C, D and E and to recommend that we allow those requests.

ALDERWOMAN SWANSON: So moved.

MAYOR EPSTEIN: Motion by Alderman Swanson.

ALDERMAN FAFORD: Second.

MAYOR EPSTEIN: Seconded by Alderman Faford. Are there any questions about any of those requests? All those in favor of approving, aye. Opposed, same sign.

JAIME MCPHAIL IS REQUESTING PERMISSION TO HOST A LOCAL 5K RUN/ 2MILE BENEFIT “JOGGING FOR ABRAHAM DAILY” AT MCBROOM PARK (SOUTH TENTH AVENUE AND VANMETER) ON SATURDAY, SEPTEMBER 17, 2016 FROM 8:00 A.M. UNTIL 12:00 P.M.

KANKAKEE SCHOOL DISTRICT 111 IS REQUESTING PERMISSION TO HOST THE KANKAKEE HIGH SCHOOL HOMECOMING PARADE AND PEP RALLY ON FRIDAY, OCTOBER 14, 2016, FROM 12:00 P.M. UNTIL 2:00 P.M.

COMMUNITY ARTS COUNCIL OF KANKAKEE IS REQUESTING STREET CLOSURE OF SOUTH SCHUYLER AVENUE FROM EAST MERCHANT STREET TO EAST STATION STREET AND EAST MERCHANT STREET FROM SOUTH SCHUYLER TO THE DEPOT FOR THE FALL ARTS STROLL ON SUNDAY, SEPTEMBER 11, 2016, FROM 7:00 A.M. UNTIL 7:00 P.M.

CHOICES YOUTH OUTREACH INTERNATIONAL IS REQUESTING PERMISSION TO HOST THE COMMUNITY RESOURCE SUMMIT AT THE FARMERS’ MARKET PARKING LOT ON SATURDAY, SEPTEMBER 17, 2016 FROM 1:00 P.M. UNTIL 5:00 P.M., WITH A RAIN DATE OF SATURDAY, SEPTEMBER 24, 2016

KANKAKEE COUNTY HUMANE FOUNDATION IS REQUESTING STREET CLOSURE OF SOUTH EIGHTH AVENUE FROM WEST CALISTA STREET TO WEST CHARLES STREET FOR THE 2016 FURRY FALL FESTIVAL WALK AT THE CIVIC AUDITORIUM, 803 SOUTH EIGHTH AVENUE, ON SUNDAY, OCTOBER 9, 2016, FROM 10:00 A.M. UNTIL 4:00 P.M.

MAYOR EPSTEIN: The Communications are approved. Standing Committees. Public Safety. Alderman Osenga.

ALDERMAN OSENGA: Yes, Mayor Epstein, ah, on August 2, was National Night Out so we had a short meeting. I think everybody wanted to get over there so they could eat a free hot dog. Ah, so the information is in the report. We did have a short meeting.

MAYOR EPSTEIN: Okay. License and Franchise. Alderman Brown.

ALDERMAN BROWN: Well, unfortunately we didn’t have a quorum, but the Utility manager did report that Kankakee Valley Construction Company is going to replace about 2,800 feet of main. They gonna’ change 865 feet of main.2" main, and 1,600 feet of 6" main and make ‘em all 8" main. And, the importance of this is flow, is the flow and, ah, that’ll help the water.the water pressure for the fire hydrants and stuff like that as well as they gonna’ install nine new hydrants and 48 new service lines. I mean six new hydrants and nine valves. And the reason for that valve is they can isolate problems, if a problem arises in the areas of Meadowview and Country Club and Williams Street which is a total of about $700,000.00 worth of improvements. Now, I know a lot of people were worried about that in town. I did too. I was wonderin’ when that project was gonna’ happen, but that been put on hold–all those other projects. And, these projects, anticipate them bein’ completed by August or the end of September.

MAYOR EPSTEIN: Okay. Thank you, Alderman. Ah, Budget, Alderman Baron.

ALDERMAN BARON: In our, ah, meeting last Monday, I’d just like to relay we were following as a Council here, several of the variable taxes. Several of the variable revenues and I’d just like to report to you on them. Sales tax, ah, you’ll recall that we budgeted $310,000.00 per month for this fiscal year. For the four.well for the three months that we received and the fourth month that we haven’t received yet, but which has been determined by the Department of Revenue, the average for those four months is $325,000.00 versus the $310,000.00 budgeted. Which is good and that’s good by a nice amount. Charitable Gains tax, we had budgeted $18,750.00 per month. Ah, we received one payment which was for two months, which averaged $29,742.00. So, that’s, ah, that’s in the good direction there, too, by a fairly good percentage. Ah, and finally for the expenditure side, we continue to follow the overtime, specifically in Police and Fire, ah, nothing awful going on there except we’ve had some unplanned events. We’ve had staff turnovers. We’ve had under staffing. And, injury leave. So, hopefully, ah, that will improve as we staff that better, as we have more people. And, this may be one where we may have to actually amend the budget as the year goes on, but that’s not clear yet. And, I’ll keep you up to date on those as we go along–those three topics. That’s it.

MAYOR EPSTEIN: Okay. Thank you, Alderman. Ah, Report of Officers. A motion to approve the bills. We missed you, Alderman Faford, last time.

ALDERMAN FAFORD: Well thank you. I was where it was hot. I move that we approve the Report of Officers, place the money in the proper accounts and pay the bills in the amount of $422,034.22.

ALDERMAN TALL: I’ll second the motion.

MAYOR EPSTEIN: Motion by Alderman Faford, seconded by Alderman Tall. Are there any questions on any of the checks?

ALDERWOMAN WELLS-ARMSTRONG: 70631.

MAYOR EPSTEIN: 706.what, 31, did you say?

ALDERWOMAN WELLS-ARMSTRONG: Yes.

MAYOR EPSTEIN: Ah, that was for the Fire Department. I believe that was some type of equipment. Bullex, is that the company, Alderman, that you wanted to know?

ALDERWOMAN WELLS-ARMSTRONG: Yes.

MAYOR EPSTEIN: Yes. Ron. B-u-l-l-e-x. I have it down as a Fire Department expense.

RON YOUNG: Yeah, that’s the prop for our extinguisher training.

MAYOR EPSTEIN: Any other questions? Okay, hearing none, roll call.

CLERK DUMAS:

AYE: Tetter; Brown; Curtis; Baron; Wells-Armstrong; Tall; Faford; Swanson; Crawford; Osenga; O’Brien (Aye, although I abstain on two items: 70654 and 70655); Gall; Kennedy; Davidson (14)

REPORTS OF OFFICERS APPROVAL OF BILLS - $ 422,034.22

MAYOR EPSTEIN: Motion carries. Under Unfinished Business, I believe Kris Schmitz passed out a Supplemental Resolution. If you recall at the last Council meeting, we passed the Motor Fuel Tax motor overlay program. Ah, there was a discrepancy. The bid was $9,500.00 higher than the Engineer’s estimate. And, IDOT requires us to pass this Supplemental Resolution so they would release the funds to us to do the project. So, do I have a motion to approve the Supplemental Resolution?

ALDERMAN O’BRIEN: So moved.

ALDERMAN BROWN: Second.

MAYOR EPSTEIN: Did I hear a motion? Yes. Motion by Alderman O’Brien. Seconded by Alderman Brown. Are there any questions? Roll call.

CLERK DUMAS:

AYE: Tetter; Brown; Curtis; Baron; Wells-Armstrong; Tall; Faford; Swanson; Crawford; Osenga; O’Brien; Gall; Kennedy; Davidson (14)

SUPPLEMENTAL RESOLUTION FOR IDOT FOR MFT MAINTENANCE

MAYOR EPSTEIN: Motion carries. Moving onto to New Business. We have an Ordinance amending Chapter 32 which establishes a handicapped parking space at 438 S. Elm. Do I have a motion to Suspend the Rules?

ALDERWOMAN GALL: So moved.

ALDERMAN O’BRIEN: Second.

MAYOR EPSTEIN: Motion by Alderman Gall, seconded by Alderman O’Brien to Suspend the Rules that would interfere with the passage of this Ordinance. Roll call.

CLERK DUMAS:

AYE: Tetter; Brown; Curtis; Baron; Wells-Armstrong; Tall; Faford; Swanson; Crawford; Osenga; O’Brien; Gall; Kennedy; Davidson (14)

MAYOR EPSTEIN: Motion carries. Motion to place the Ordinance on Final Passage.

ALDERWOMAN GALL: So moved.

ALDERMAN O’BRIEN: Second.

MAYOR EPSTEIN: Motion by Alderman Gall, seconded by Alderman O’Brien. Are there any questions? Roll call.

CLERK DUMAS:

AYE: Tetter; Brown; Curtis; Baron; Wells-Armstrong; Tall; Faford; Swanson; Crawford; Osenga; O’Brien; Gall; Kennedy; Davidson (14)

ORDINANCE AMENDING CHAPTER 32, SECTION 231 ESTABLISHING HANDICAPPED PARKING AT 438 SOUTH ELM AVENUE

MAYOR EPSTEIN: Motion carries. Moving onto Motions and Resolutions, we have the first item is a motion to issue a Taxicab License to Burt’s Transportation. Ah, this was based on a License and Franchise special committee meeting that was held on August 11, and they did approve this. Alderman Brown, did you want to speak to this at all?

ALDERMAN BROWN: Just that Mr. Burt purpose of this asking for this license is that he want to start off slow and he want to have services from here to Manteno and to Pembroke to open up first and then later on he want to have a full taxi service. But, right now, just him and his wife so he want to start small. But, his rate–he’s got a flat rate and it’s unbelievable–five bucks. It’s just ridiculous, but it is what it is so.and he was very.and he met all the requirements, so. And, I thank the committee for showing up for that special meeting, too.

MAYOR EPSTEIN: Okay, thank you. So we have a motion.I would like a motion to approve this license.

ALDERMAN BROWN: I would make a motion that we do so.

ALDERWOMAN SWANSON: Second.

MAYOR EPSTEIN: Motion by Alderman Brown, second by Alderman Swanson. Are there any questions? Roll call.

CLERK DUMAS:

AYE: Tetter; Brown; Curtis; Baron; Wells-Armstrong; Tall; Faford; Swanson; Crawford; Osenga; O’Brien; Gall; Kennedy; Davidson (14)

MOTION TO ISSUE TAXICAB LICENSE TO BURT’S TRANSPORTATION BASED ON LICENSE AND FRANCHISE COMMITTEE APPROVAL ON AUGUST 11, 2016

MAYOR EPSTEIN: Motion carries. The next two items on the agenda are a little unusual. Ah, while I was an Alderman I don’t remember us undertaking this, but as you’ve noticed as you drive around the City or the County actually, the County Trustee is selling individual parcels because no one has paid the taxes on those and they have.they’ve gone to the Trustee. Well, as we were noticing which parcels were available, we have several.that’s the first item that you’re going to deal with, this Resolution, five lots that we would like to purchase for $600.00 each. They are across the street from the Graham Building, ah, and that has been a site that has been discussed with Metro to be a transfer station. This issue that the transfer station was not, ah, developed were funding from the State, but B, the acquisition of that property was exorbitant. And, now we have the opportunity to purchase that property for a very, very reasonable amount of money. I’ve spoken to Rob Hoffman at Metro. It is still on their strategic plan to build a Metro station there–a transfer station–and so I think it would behoove us to acquire these lots while we can before someone else buys them and ties them up and then we’re back to where we started. So, any questions about this? Alderman Davidson.

ALDERMAN DAVIDSON: Now is that property on the corner of Schuyler and Chestnut?

MAYOR EPSTEIN: Yes.

ALDERMAN DAVIDSON: Okay.

MAYOR EPSTEIN: It’s an old car dealership.

ALDERMAN DAVIDSON: And, it’ll go from Chestunt to Locust and then to Dearborn?

MAYOR EPSTEIN: That’s correct. It doesn’t go quite up that far. Right.

ALDERMAN DAVIDSON: That’s correct.

MAYOR EPSTEIN: There’s a white house that is not part of this.

ALDERMAN DAVIDSON: Correct. It just goes into that fenced in area right there.

MAYOR EPSTEIN: Correct.

ALDERMAN DAVIDSON: Fantastic.

MAYOR EPSTEIN: Are there any other questions? Okay. Then I would like a motion to approve the purchase of.the contract between the City and the County Trustee for the purchase of these five lots located on 300 block of North Schuyler.

ALDERMAN DAVIDSON: I make that motion.

ALDERWOMAN KENNEDY: Second.

MAYOR EPSTEIN: Motion by Alderman Davidson, seconded by Alderwomen Kennedy. Roll call.

CLERK DUMAS:

AYE: Tetter; Brown; Curtis; Baron; Wells-Armstrong; Tall; Faford; Swanson; Crawford; Osenga; O’Brien; Gall; Kennedy; Davidson (14)

RESOLUTION AUTHORIZING THE EXECUTION OF THE PURCHASE CONTRACT AGREEMENT BETWEEN THE CITY OF KANKAKEE AND KANKAKEE COUNTY TRUSTEE

MAYOR EPSTEIN: The motion carries. The next Resolution is exactly the same thing. Ah, Chief Young brought it to our attention that near the Fire Station on Water Street, we use these two lots, actually that are on sale, for parking. And, so it would be an appropriate time to purchase 819 and 829 S. Washington, which would give us a buffer at that Fire Station and again, for $600.00 each, it’s a very inexpensive way to acquire the property abutting our Fire Station there. Any questions about that purchase? Okay. Motion to approve.

ALDERWOMAN SWANSON: So moved.

ALDERMAN FAFORD: Second.

MAYOR EPSTEIN: Motion by Alderman Swanson, seconded by Alderman Faford. Roll call.

CLERK DUMAS:

AYE: Tetter; Brown; Curtis; Baron; Wells-Armstrong; Tall; Faford; Swanson; Crawford; Osenga; O’Brien; Gall; Kennedy; Davidson (14)

RESOLUTION AUTHORIZING THE EXECUTION OF THE PURCHASE CONTRACT AGREEMENT BETWEEN THE CITY OF KANKAKEE AND KANKAKEE COUNTY TRUSTEE

MAYOR EPSTEIN: Motion carries. The next Resolution is.did I hear Mayor?

ALDERMAN BROWN: Yes.

MAYOR EPSTEIN: Alderman Brown.

ALDERMAN BROWN: You know it might help if we’d know where this money’s comin’ from to pay for these if that’s.

MAYOR EPSTEIN: Probably out of.it’s, ah, Capital.

ELIZABETH KUBAL: Yes, it would be out of Capital.

MAYOR EPSTEIN: It’s a long term purchase.

ALDERMAN BROWN: Okay. I mean, I just thought maybe that, if it come up later we’ll know.

MAYOR EPSTEIN: Okay.

ALDERMAN BROWN: Okay.

MAYOR EPSTEIN: Ah, the next item on the agenda, I’m very pleased to bring for your approval this evening. In May, we held a joint Housing Task Force meeting as well as a public meeting that many of you attended on what we’re calling the Fountain Square project which is the development of downtown housing in the City of Kankakee. It speaks to our development and our redevelopment for our community downtown from an Arts and Entertainment District. Ah, we feel that the time is appropriate to do some housing in the downtown area. This Resolution this evening is important because it allows us to gift or donate to the developer the parking lot on the corner of Station and East Avenue. Actually, half of that parking lot. It has been subdivided as well as to provide them with TIF funds out of the Downtown TIF towards the financing of this development. To refresh your memory, it is a $7.5 million project of 35 units market rate. Eighteen one-bedroom, 15 two-bedroom and two penthouse apartments. I think we’re calling them the turret apartments. Rents will range anywhere from $700.00 to $1,250.00 a month. There is a variety of funding sources that will pull together the $7.5 million. Brian Hollenback is here from Rock Island Growth. If you’ll recall, we have signed an agreement with them to be our developer not just in this project, but we certainly hope in future projects. I’m going to let Brian speak. Ah, this will create property taxes, ah, certainly there are no property taxes being generated by that property at this current time. But, they will be.you know, property taxes will be generated for many years to come and Alderman O’Brien and myself will be at the IHDA Board meeting on Friday. This project has already passed peer review and we hope to get the approval of IHDA for the tax credits that will be a piece of this funding. Brian, would you like to come forward and, ah, give us your talk on this project?

BRIAN HOLLENBACK: Thank you for allowing me the privilege of being able to speak this evening. In your packets, I think it’s very important as we enter into this long-term relationship that we tell you a little bit about whom we are and some of our past successes. We are a very unique public/private partnership that is a community based nonprofit. And, we look forward to being your nonprofit community-based developer as well. In the hand out you will see, it shows about a $170 million worth of economic development in a community of about 40,000 people in addition to a regional and national presence. So, what I thought I’d do is, there is a brief little handout here if you wouldn’t mind looking for it. And I thought it was important to tell you a little bit about who we are and who our staff here is. On the first page, you’ll see that we are a Community Housing Development Organization that is familiar to most of you. We are also a HUD Approved Housing Counseling organization and just received our 3-year certification on that. And what’s been very exciting for us is the completion of.okay. Thank you. It is through neighborhood stabilization one two and the Attorney General National Foreclosure Settlement dollars we’ve been able to see a direct impact of about $45 million. And that $45 million has not just been within the City of Rock Island, but it’s been within three rural communities as well as two other cities within the quadrant of the quad cities and two other nonprofits. Um, as far as our development history, about 1,200 single family homes as well as a downtown development. Um, just a little bit. We expanded our service area, become a national nonprofit about five years ago. Ah, and, through that process we also formed another national for-profit which is Central States Development Partners. That is very key for us because that is the tool which we will use to access New Market Tax Credits and if you’re not familiar with New Market Tax Credits, it’s just one more significant resource that feeds the comprehensive approach to creating a strong economy. It provides about 20% cash equity on commercial activity such as manufacturing, food desert, healthcare and education. Now, it’s not just the New Market’s piece of that, but in each of these, as you’ll see tonight, we require that each of the qualifying businesses that participate in that, enters into a Community Benefit Agreement with one of our other national nonprofits for the purpose of investing in neighborhoods. And, then, I thought this was significant since the last time we met. I’m very proud of this. This tells you how strong of a board that we have and what tremendous staff that we have. In March, we received the honorable James Leach Award, Congressmen James Leach, and I want to read to you exactly what that award was for. It was a national award recognizing the most outstanding rural nonprofit organization in the country that best promotes fair and equal access to credit and capital and/or contributes the most in its community toward promoting wealth building and traditionally under served populations. I think that says it all why we’re here. Okay. We are a unique public/private partnership and people often ask us, how do we know which hats to wear. So, we tried to keep it as small as we could in this little pyramid here, but Rock Island Economic Growth doing business as Economic Growth is the mothership nonprofit, ah, with the strongest balance sheets that allows us to secure the financing and then we also have our hospitality zone and then the commercial component. And, then we just threw in an organizational chart. So, let’s talk a little bit about our project here. We’re very excited about Fountain Square Apartments. We had a conference call while I was driving with our development team as we make preparations for spending a lot of time here in Kankakee until the end of the year and our groundbreaking. So you have an elevation. It has gone through some modifications and we look forward to working closely with the Task Force to insure that local comments are included within what the elevation would be. Ah, the Mayor’s already indicated, as far as the 35 units, ah, and we also believe that in everything that we touch, we should report back to the community what is the direct economic impact of the project and we report it in jobs. And, based on the National Homebuilders Association, ah, on a project of this size, we believe it will support 84 local and regional jobs that will be supported. Our development team is a very strong development team. Economic Growth, of course, is the Developer, Hooker DeJong is the Architect and Bush Construction is our Construction Manager. They are not the general contractor. They are a Construction Manager. This is the firm that we are very comfortable with in working through complex financing structures and know how time is so important and as we work with the local labor force. The development budget is right at $7.5 million. The Mayor’s already gone over the unit mix and the rents. We’ve given this a lot of consideration and we appreciate the feedback from you as community leaders that have also provided feedback so, again, the business model that we’ve based all of our financial performas has included local input as well. And, then you also have in your packet, the site location, ariel maps and floor plans. And, this is based on, with modifications, a product that we’ve already built that’s been very successful. I will tell you that what we saw through our downtown redevelopment efforts–and if you’re not familiar with our community, we lost about 20-25% of our population base at the crash of the farm implementation industry. And, our first celebration in the revitalization of our downtown was literally turning on street lights. So, our entity was born out of a failed attempt at a business improvement district and the private sector stepped in and provided that initial seed capital to provide what we are today. And, consistent with a lot of down towns going through a revitalization and accessing historic tax credits we, too, also participated in low income housing tax credits and it really kick started our downtown housing initiatives. But, what we’ve seen from a non-income restricted market rate product is it really becomes a catalyst for the redevelopment within a downtown. We’re seeing this in multiple cities in fact. Ah, we’ve been working on a few projects over the last couple of years and ironically they are all coming to fruition at about the same time or within the same year. But, we’re seeing this as a key component. Ah, our first 100% market rate product was a transit oriented development, new construction on a parking lot that looks very similar to this. It rented up very quickly and we continue to have a waiting list. So, there’s just kind of an overview of our organization. The programs that are there that break down our Annual Report so if you want to know a little bit about how we operate, you’ll see two pages and I believe they’re on 31 and 32. It breaks out specifically the direct economic impact and not just the initial job creation, but the ongoing sustain ability of the jobs as well as all the peripheral positions. And this is something that we will also track here as we hope that this is just our first of many other development opportunities.

MAYOR EPSTEIN: Thank you, Brian. The agreement that you’ll be approving tonight that we, ah, have to pass at tonight’s meeting because it’s important for the IHDA Board meeting on Friday also is the Community Benefit Agreement and we decided to put them both here together. Part of this project will be a donation to the City of $50,000.00 that will go towards our down payment assistance program to help incentivize more people to purchase homes in the City of Kankakee. So, that’s part of the community benefit that, ah, that this developer has chosen to show their strength in the City of Kankakee and, ah, I think I’ve mentioned this before but I think it bears repeating. Many, many communities would like to have a developer–Rock Island Growth, not just a developer–take an interest in their community, but I think Brian can speak to, ah, they liked what’s going on in our community. They felt that we would be good partners for them and that we were certainly ready to take this next step in stabilizing and the redevelopment of our downtown. Does that say it all?

BRIAN HOLLENBACK: It does.

MAYOR EPSTEIN: Okay. Are there questions? Please.

ALDERMAN DAVIDSON: I’ve got a question.

MAYOR EPSTEIN: Alderman Davidson.

ALDERMAN DAVIDSON: Ah, without looking through the packet, I’m just curious. I know you have different funding sources, IHDA being one of ‘em. The.some of the apartments will be low income or maybe not necessarily low-income, but be based on income. Is that correct?

BRIAN HOLLENBACK: Twenty-five percent of the units will, ah, be what we consider are live/work and it really feeds well into the downtown workforce. So, 25% of the units will have an income restriction at 60% of the area median income is workforce live/work concept.

ALDERMAN DAVIDSON: All right. Thank you. The other question would be in regards to your company, the projects that you’ve done thus far, I’m curious as to, ah, the diversity that comes along with that.

BRIAN HOLLENBACK: Very good question. I think the best way that I can respond to you is in our home buyer education and also in our financial literacy, we have a complete section on affirmatively furthering fair housing. And, that, I think that pretty well addresses the very diversity within our housing developments. We have 28 different languages spoken in our elementary schools for.that’s one of the things that we pride ourselves. When you look back at some of the textbook, asset-based communities, we feel that one of our strong assets are the diversity within our community. So, ah, we’ve had tremendous success.

ALDERMAN DAVIDSON: Thank you.

BRIAN HOLLENBACK: Um huh (affirmative).

MAYOR EPSTEIN: Thank you, Alderman. Alderman Osenga.

ALDERMAN OSENGA: Ah, sir, you said Bush Construction is going to be your general contractor, is going to oversee the project?

BRIAN HOLLENBACK: Our Construction Manager.

ALDERMAN OSENGA: Your Construction Manager. Will you be using local contractors to do some of this work or will there be outside contractors brought in that you normally work with?

BRIAN HOLLENBACK: We hope that it’s all local. And, in fact, if you’ll look in the very back of the packet, I have a sample Press Release. This is something that we want to do within two to three weeks after IHDA’s approval. And, that’s where we come into the community and we host a contractor’s forum. And, that’s why I said it’s a sample, because it’s still got to go through a few edits. And, we certainly want your approval, obviously. But, what we will do is we’ll host a networking session where it says contractor sought for Fountain Square Apartments development. And, we’ll tell a little bit about it. And, it comes twofold. One is to insure that everyone has an equal opportunity to bid the work that’s here. Okay. Ah, this is a.this comes with wage restrictions. There’ll be wage reporting, therefore, it really comes down to everyone is on a level playing field because the wages are fixed. So, it’s a matter of someone’s business model how efficient that they are running their business. We also look at, then, how we can utilize that to network with each other within the trades. Ah, we break it down, ah, it’s a social event obviously, but we want to make sure that everyone also knows how to bid the work; what type of insurances are required to bid on this type of work. To let them know that these are the wage reports that we will be collecting every week. If you don’t know how to do that, then that’s a part of what we also reach out. So, I think this best explains our intent to insure that the work is local.

MAYOR EPSTEIN: Alderman, we’ve had several conversations at the beginning of this process and just like the Mercy Project which is being done by a local contractor, our indication, our hope and our–I don’t want to say our demand–is that this will be local.

ALDERMAN OSENGA: Great. Wonderful.

MAYOR EPSTEIN: Any questions?

ALDERWOMAN WELLS-ARMSTRONG: Ah, thank you for that question Alderman Osenga. That was my question. Bush Construction is out of Davenport, Iowa, correct?

BRIAN HOLLENBACK: Correct.

ALDERWOMAN WELLS-ARMSTRONG: And, they are a right-to-work state so that was my concern. Ah, are.have you all entered into PLA’s previously in other communities where you’ve done these projects with the local unions?

BRIAN HOLLENBACK: Okay. Ah, I think you asking us to sign an actual agreement stating that 100%. We have set those aside for strictly commercial projects. It hasn’t been something that we’ve done on the housing side of things. Ah, we work so close with our organized labor. I don’t know if you’re familiar with Rock Island County as a whole, but we’re a very, very strong labor community. So, we’re very sensitive to that. In our community they’re called Community Impact Agreements. We do that on the commercial side. We just haven’t done it on residential side. And, I think the best evidence of the fact that we haven’t been required to is because we demonstrate by our actions it hasn’t been necessary to regulate us into doing what we feel is right.

ALDERWOMAN WELLS-ARMSTRONG: So, yes you will use union labor.

BRIAN HOLLENBACK: Yes.

ALDERWOMAN WELLS-ARMSTRONG: Thank you.

MAYOR EPSTEIN: Other questions?

ALDERMAN O’BRIEN: Mayor, I just have one question to clarify that this is a site different than we discussed when we first introduced this possibility in January. This is the parking lot that the City owns at the corner of Station.the northeast corner of Station and Merchant. Ah, I’m sorry. Station and East Avenue.

MAYOR EPSTEIN: Um huh (affirmative).

ALDERMAN O’BRIEN: So that’s.I just wanted to clarify that if that helps. The site we looked at initially had some deed restrictions and was not available. But, in looking at alternatives we concluded that this was a very attractive site. It had virtually all the benefits of the original site and even some others.

MAYOR EPSTEIN: Correct.

ALDERMAN TETTER: Question, Mayor.

MAYOR EPSTEIN: Alderman Tetter.

ALDERMAN TETTER: So, are we doing a rebate for this property? Tax rebate.

MAYOR EPSTEIN: No.

ALDERMAN TETTER: Of any sort?

MAYOR EPSTEIN: No. In fact, there’s no taxes being paid and this will generate taxes.

ALDERMAN TETTER: Okay.

MAYOR EPSTEIN: So, the opposite of a tax rebate.

ALDERMAN TETTER: Okay.

MAYOR EPSTEIN: No, the only.what the City is contributing to this project is the land and a million and a half dollars out of the downtown TIF that can only be spent within the boundaries of that TIF. And, that monies are there.this is the textbook case for what those surplus TIF funds should be used for. To create more value within that district.

ALDERMAN TETTER: Thank you.

MAYOR EPSTEIN: So, those are the only two things that the City is contributing towards this project. I say only.those are significant.

ALDERMAN O’BRIEN: indistinguishable obviously, the property is worth money, but I think it’s exciting that we’re able to leverage that donation and not just spend that money–that’s the end of it. We’re able to leverage it to attract private investors for almost four times that money. So, that’s really exciting to see that and we’ve got a partner that’s interested in Kankakee and helping us grow and further enhance and improve downtown Kankakee.

MAYOR EPSTEIN: And, we hope this will not be the last project. You know, our hope is that this project will create enough demand that we will move onto a second project. Ah, and as you have people living downtown, then retail and other businesses find your downtown even more attractive. So, this is what you need to jump start a community. And, again, besides the 25% of the apartments that are live/work, the rest are market rate apartments. So, this is just like if you go out by the Mall or anyplace else, the rents are between $700.00 and $1,250.00. They will do the screening. They’re the management. In house washer and dryers. I mean there’s covered parking, secure parking. This is what we want in our downtown community. People who could live in this apartment complex and get on Amtrack or go to work or go to the hospitals or wherever, ah, they are coming from. People who are downsizing from homes. Some of these will be two-bedroom, you know, bathroom, balconies. These will be lovely apartments. And, I think it’s an incredible addition to our downtown and I hope that we get the IHDA approval to really get to work in the next two months before we get to a closing. Are there any other questions? Alderman Curtis.

ALDERMAN CURTIS: Mayor, I just wanted to comment and echo your sentiment because really I think I used this word back in January. I said it’s a bold project. I think it’s a turning point for Kankakee. I think 2016 has probably been one of the most exciting years because of the developments that are on the table right now with what’s happening at Exit 312 with Ricky Rockets. What’s happening on the west side with the new Dollar General, the new Family Dollar, Mercy Housing. What this does though, is our downtown has been extremely successful in the last few years. It keeps growing. And what this is really going to help is flourish our downtown even more. I’ve think you’ve seen lately with the sidewalk dining program, there’s more activity after hours downtown and, ah, I never thought this would be a creation of it, but Pokemon Go evidently has created the new rage after house in downtown Kankakee. You can go by the depot at 8:00, 9:00 at night and there’s 30 cars there and 50 people hanging out, ah, downtown and making it more vibrant. This is only going to add to that. We’re going to now not be just an 8:00 – 5:00 community downtown, we’re going to be more a 24/7 community downtown. And, what that does, as the Mayor said, that’s how we attract stronger retail to downtown. Businesses can’t survive on population only buying products from 8:00 in the morning ‘til 5:00-6:00 at night. They’ve got to survive from starting at 7:00 in the morning until 10:00-11:00 at night, Saturdays and Sundays. And, this is where, as we’re working at the Economic Development, this is where, hopefully, with the downtown environment, we can go out and get more businesses and be attracting downtown which then leads to those tentacles in each of our wards. So, if you can have a strong downtown, our community’s even going to be stronger ‘cause we going to reach out to more neighborhoods. So, again, I use the word bold. I think this is an exciting time for Kankakee.

MAYOR EPSTEIN: Thank you. Alderman Osenga.

ALDERMAN OSENGA: I have one more question. Once this development is completed and it’s occupied, do you guys continue to maintain it or will you at some point sell it to another group? Or will you do guys continue to be hands on with this project?

BRIAN HOLLENBACK: We will continue to own it and manage it.

ALDERMAN OSENGA: Very good.

ALDERMAN O’BRIEN: One last question, Brian. Is the timeline of, you know, assuming we move forward from here today, if this is approve by the City Council, what happens next? What’s the timeline?

BRIAN HOLLENBACK: Well the next step would be the IHDA approval and then for the next 30-45 days we’ll be very busy, we’ll be here a couple times a month just working out the final details and also making sure that the local labor forces knows that it’s here, knows how to bid it and that we keep the work local and then, ah, there’s approximately a 60-day review so by HUD on the financing, so we definitely will be closing and breaking ground yet this year. Ideally, weather wise, obviously, ah, spring is better, but the Illinois Housing Development Authority has jumped through many hoops and that to be able to get this ready for their Board approval Friday. They’ve held special peer reviews, special loan committee and, ah, we just can’t allow it to go past December 31, because what they will approve on Friday is by capitalizing on your contribution as almost another $900,000.00 in cash by utilizing the State donation tax credit and that is due to sunset December 31. We hope that it will be extended, but if you’re not familiar with that program, virtually every product that we have touched since 2003 has used that program, so we get 50¢ on the dollar in the form of a State allocation which we sell into the secondary market. Currently Macy’s and Kohls are the ones that are buying those State credits and so, ah, there’s, you know, almost about $900,000.00 is in proceeds on that that will come. So, we’ve got a very aggressive schedule and so that’s the conversation we had today and then getting scheduled for the contractor outreach so we make sure the community’s aware of the product.

ALDERWOMAN WELLS-ARMSTRONG: These apartments are rental, they’re not buying, correct?

MAYOR EPSTEIN: No. Rental.rental units.

ALDERWOMAN WELLS-ARMSTRONG: Okay.

MAYOR EPSTEIN: Alderman Baron.

ALDERMAN BARON: Ah, do you expect to get a decision from IHDA on Friday?

BRIAN HOLLENBACK: Yes. We’ve jumped through the hoops of peer review and loan committee. Ah, it’s gone out in the package and we definitely anticipate an approval Friday.

ALDERMAN BARON: Okay. And, then does HUD review. When does the HUD review?

BRIAN HOLLENBACK: Sixty days. We’re going to submit it September 1. That was part of our conference call today. We didn’t want to wait. You’re familiar with how 108 works. And, you know, this is.we are seeking part of the State allocation and how we are able to do that is by demonstrating 51% of the benefit is going to those that are from like the County, from residential or in the job component for relocation. We have to show that 51% of the benefit which will be met through the workforce housing, those 25% units that are there and we hope that it will also attract other folks to move downtown from the County itself.

ALDERMAN BARON: Thank you.

MAYOR EPSTEIN: Any other questions? Okay. Motion to approve.

ALDERMAN O’BRIEN: So moved.

MAYOR EPSTEIN: Do I have a second?

ALDERMAN CURTIS: Second.

MAYOR EPSTEIN: A motion by Alderman O’Brien, seconded by Alderman Curtis to approve and execute the Development Agreement and the Community Benefits Agreement with Rock Island Economic Growth for the Fountain Square Apartments in the City of Kankakee. Roll call.

CLERK DUMAS:

AYE: Tetter; Brown; Curtis; Baron; Wells-Armstrong; Tall; Faford; Swanson; Crawford; Osenga; O’Brien; Gall; Kennedy; Davidson (14)

RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF THE DEVELOPMENT AGREEMENT AND COMMUNITY BENEFITS AGREEMENT WITH

ROCK ISLAND ECONOMIC GROWTH CORPORATION, FOUNTAIN SQUARE APARTMENTS LLC AND THE CITY OF KANKAKEE

MAYOR EPSTEIN: Motion carries. Thank you. I think this is going to be an incredible project and we’ll make sure.I don’t know, Mike probably knows how to Facebook or Twitter or whatever to let you know how the Friday meeting goes. Moving on, there are no Public Comments this evening. Before I go to Aldermen Comments, ah, tonight you were due to turn in your list of priorities for, ah, your Capital items. If you have those, would you please get them to me after the meeting? If you don’t have them, can you get them to me as soon as possible because I would like to set a schedule, a strategic planning session to talk about not just prioritizing those projects, but really the City’s finances as a whole. So, those are going to be sort of the jump start of that meeting. Ah, Alderman Comments. Any comments this evening? Alderwoman Kennedy.

ALDERWOMAN KENNEDY: I was just wondering, have you come up with any ideas for the, ah, some type of barrier for, what is that, East Avenue where we’re having a problem with people running off into the river.

MAYOR EPSTEIN: Mr. Tyson is looking into it, Alderwoman. Ah, we haven’t come up with any decision yet. We’ll bring it to your.to the Council when we do.

ALDERWOMAN KENNEDY: Okay.

MAYOR EPSTEIN: Alderman Swanson.

ALDERWOMAN SWANSON: There will be no Ordinance meeting this month.

MAYOR EPSTEIN: Okay. Any other comments? Alderman Brown.

ALDERMAN BROWN: Mark. Mark, would you stand up please? Ah, I.I would just like to thank Mark because, ah, this year I had the pleasure of planting my planters in my ward. And, he helped me do that. And, people know when I put my hand on a flower, it usually run from me. So, I was very thrilled and I just want to say Mark, thank you. We have one more corner to go. But, thank you so much for helping me.

MAYOR EPSTEIN: Well, you know, Mark is an honorary Kankakee resident.

ALDERMAN BROWN: I got a house for him in my ward.

MAYOR EPSTEIN: Any other comments? Alderwoman Wells-Armstrong.

ALDERWOMAN WELLS-ARMSTRONG: I had a couple people contact me about shootings in the 1st Ward. And, ah, I was just curious, do we have, I guess Chief would be able to.do we have reward money that we can offer? I know the one thing that you talked about is that people don’t come forth. We all know that. People are scared of retaliation and distrustful, ah, with law enforcement relationships so are there any measures being taken to improve that or, you know, do we have rewards that we can offer for people to come forth?

CHIEF REGNIER: We do have, ah, Crimestoppers, 93Crime. Also, if you come in with information to any of our personnel we will direct them to, ah, where they need to be to receive something, however, that’s not something that we, ah, that we publish. We.we take care of those who take care of us.

MAYOR EPSTEIN: Okay. Any other questions?

ALDERMAN O’BRIEN: Mayor, the Housing Task Force meeting will not be.will be next Tuesday, a week from tomorrow, the 23rd at 5:30 in the Committee room here on the second floor.

MAYOR EPSTEIN: Okay. Motion to adjourn.

ALDERWOMAN SWANSON: So moved.

ALDERWOMAN WELLS-ARMSTRONG: Second

MAYOR EPSTEIN: Motion by Alderman Swanson, seconded by Alderwoman Wells-Armstrong. All those in favor, aye.

MOTION TO ADJOURN CITY COUNCIL MEETING

MAYOR EPSTEIN: We are adjourned.

7:45 P.M.