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1 Advisory Task Force on Economic Development Wednesday, October 11, :30 AM W. Lockport Street Plainfield, IL nd Floor, Conference Room A Agenda A. CALL TO ORDER B. ROLL CALL C. PUBLIC COMMENTS D. BUSINESS MEETING D.1. APPROVAL OF MEETING MINUTES - 7/12/17 ED Task Force Minutes pdf D.2. D.3. D.4. D.5. D.6. ECONOMIC DEVELOPMENT STRATEGY (GOALS, RECRUITMENT, IMPACT FEES) ED Strategic Planning Memo.pdf DOWNTOWN SHOPPING INITIATIVE ED Downtown Shopping.pdf HOTEL FEASIBILITY STUDY Hotel Feasibility Study.pdf NETWORKING EVENT 2017 Networking Showcase Event.pdf ECONOMIC DEVELOPMENT UPDATE E. ADJOURN 1
2 Advisory Task Force on Economic Development Agenda Item Report Agenda Item No Submitted by: Jake Melrose Submitting Department: Planning Department Meeting Date: October 11, 2017 SUBJECT APPROVAL OF MEETING MINUTES - 7/12/17 Recommendation: ATTACHMENTS ED Task Force Minutes pdf 2
3 Advisory Task Force on Economic Development Meeting Minutes July 12, 2017 Village Hall, W. Lockport Street Attendees: Steve Preze, Greg Schaefer, Lee Goodson-Hassert, Harold Oliver, Cassie Vaughn, Trustee O Rourke, and two members of the public. Staff: Jake Melrose. The meeting was called to order at 7:30AM by Chairman Greg Schaefer. Michael Konrad & Troy Strange was absent. Public Comments: None. Business Meeting Motion was made by Mr. Preze to approve the April 12, 2017 task force minutes. Seconded by Ms. Vaughn. Motion carried. Mr. Schaefer asked staff to present the agenda item Economic Development Strategic Planning. Mr. Melrose presented the agenda item stating the Village Board recently held workshops that review the status of the strategic planning goals. In the strategic plan, there are multiple goals that correlate with economic development. Staff wanted to update the task force in regards to these goals and where staff is currently with achieving them. A conversation ensued regarding adding to these goals in regards to economic development initiatives and the best approach to advising the Village Board. Mr. Oliver stated that the task force can take a more active role in advising the Village Board regarding these goals and adding new initiatives and business recruitment. Mr. Schaefer added that new industries can be added to the priority recruitment list due to the retail industry s volatility, such as hotels. 3
4 Mr. Melrose stated that staff has been working to recruit interest in the hotel industry but formalizing it would be a good step forward. It was agreed that staff would look into a possible special meeting to go over these ideas and inform the task force. Mr. Schaefer asked staff to present the next agenda item, U.S. Route 30 TIF Update. Staff stated that this is the primary goal identified by the Village Board to achieve in the next year and see the analysis completed. In order to do so, there are three due diligence items that are needed to be completed prior to doing so that require the cooperation of property owners. Staff has made progress on all these items within the past month and is hopeful to have everything moving forward late summer/early fall. Mr. Schaefer introduced the next agenda item, RECon Summary, asking staff to preset the report. Mr. Melrose stated that RECon is the largest retailer convention in the U.S. housing most every active retailer in the country at the event. In staff s day-to-day, a retailer gap analysis is prepared and utilized to identified retailer s that are not located in the village and to determine their existing trade areas and whether or not we meet their standard site criteria. Using this data, staff is able to identify select retailers at the conference that have a higher probability of locating in the village. Staff also spoke with multiple developers regarding larger development areas including the Boulevard, Village Center, and 119 th St Shops at the polo Club parcel. Most conversations were the same in that if the village wanted to see something of a larger caliber retail development with dining and shopping it would require some form of mixeduse. Mr. O Rourke stated that he would like to see staff continue to go to RECon and recommends that the Village do so in The task force affirmed this recommendation. Mr. Schaefer asked staff to present the next agenda item, Events. Staff briefed the task force upcoming events including a progressive dinner, networking event, and Small Business Saturday event. Mr. Schaefer asked staff to present the final agenda item, Economic Development Update. Staff provided an update on project areas, including the Boulevard, Prairie Creek, Village Center, Downtown Fire Station, Baci s, and retention visits with small businesses. Mr. Melrose concluded that the next scheduled meeting is in October. Mr. Oliver made a motion to adjourn the meeting. Seconded by Mr. Preze. All in favor. Meeting adjourned at 9:01a.m. 4
5 Advisory Task Force on Economic Development Agenda Item Report Agenda Item No Submitted by: Jake Melrose Submitting Department: Planning Department Meeting Date: October 11, 2017 SUBJECT ECONOMIC DEVELOPMENT STRATEGY (GOALS, RECRUITMENT, IMPACT FEES) Recommendation: ATTACHMENTS ED Strategic Planning Memo.pdf 5
6 October 11, 2017 ECONOMIC DEVELOPMENT TASK FORCE VILLAGE OF PLAINFIELD W. LOCKPORT ST. 2 nd FLOOR, CONFERENCE ROOM A SUBJECT: ECONOMIC DEVELOPMENT STRATEGIC PLANNING SUMMARY The Village s business plan currently lays the ground work and strategic plan specifically for economic development in Plainfield. In light of recent discussions and changes to our overall landscape since the recession, staff is proposing to amend the business plan in regards to the goals, recruitment, and residential impact fees. The task force has already identified changes to the incentive policy, which will be incorporated into the amendment. Economic Development Goals The below goals are established in the Village Strategic Plan that are specific tasks for specific project areas. 1. Action Item: Explore the possibility of creating a Tax Increment Finance District for Route Action Item: Create a vision for the Target outlot. 3. Action Item: Work with developers on the Meijer outlots. 4. Action Items: Update the Business Plan with a new incentive policy. 5. Action Item: Review the current impact fee schedule for single-family residential developments. 6. Action Item: Work with the developers of Prairie Creek and the Boulevard on unified design visions for both developments. The business plan did provide goals that are still valid today. Staff has provided additional goals and from discussions with the task force has provided a possible goal to recommend regarding multi-family that could be included in the new strategy plan: 6
7 A. Plan for a new business park and for retail goods and services in locations identified in the Future Land Use Plan. B. Pursue development of a business park near the I-55/U.S. Route 30 intersection and the long term redevelopment of Four Seasons Park. C. Pursue the expansion of the hospital services that are provided to the Plainfield residents. D. Build a relationship among the Economic Development Task Force, the Village Board, the Chamber of Commerce, the School District, the Park District, and the Plainfield business community that encourages the exchange of information. E. Foster the growth of quality multi-family developments in suitable locations in the village to provide a diversity of housing stock (i.e. transitional commercial areas, downtown/village center area, and areas limited value with alternative developments) F. Establish an effective Business Recruitment Plan which will promote and market the Village of Plainfield to businesses and developers who are searching for potential sites for their business facility or commercial development. G. Implement a business retention program to retain the industrial and commercial base existing in the Village and assess the economic climate of the village. H. Provide creative solutions for identified issues with business recruitment, expansion and retention. I. Maintain current demographic information, a land and building inventory and financing and grant opportunities available for businesses investigating expansion options or seeking a new site for a business and for developers seeking information related to a new retail commercial center. J. Leverage and encourage the utilization of existing programming, i.e. façade assistance. K. Complete a TIF district analysis for the U.S. Route 30 corridor from Renwick Road southeast to Interstate 55. L. Explore marketing opportunities to promote the many village assets to attract developments, businesses and new residents to Plainfield. Page 2 7
8 Business Recruitment As previously discussed, the task force suggested that the business plan/strategy plan be revised to include other industries as part of its business recruitment focus due to the volatility of the retail shopping industry. Staff provides the following possible amendment to the plan: 1. Targeted Industries Retail, Hospitality, Industrial Retail Recruitment The current targeted retailer industries that have been identified by the Village through the ESRI Retail Market Potential index leakage reports and Village feedback include: Sporting Goods Specialty Grocer Restaurants Apparel Other opportunities that may exist in accordance with the spending index may also include: Electronics Furniture Auto dealerships Hotel Recruitment The accommodations hospitality industry is currently another industry that is not overtly present in the village. Plainfield s businesses and industries that generate stays and room occupancy send the majority of their visitors over 20 minutes away to a higher end/3 star hotel. Village staff has received feedback that a boutique hotel may be possible and that this possibility does warrant the need for a feasibility study. It is recommended that a hotel feasibility study be completed to not only assist with hotel development recruitment, but also provide a snapshot to identify any potential weaknesses or threats that may exist for a hotel development s success in the village. Entertainment Movie Theater this industry currently does not exist in the village. The village center area may be the best overall site due to its distance from local theaters, approximately 4.5 miles from Joliet s Cinemark in the Louis Joliet Mall and over 8 miles to Naperville s AMC on IL 59. While the village would be open to multiple sites for a movie theater throughout the village, the village center area would benefit the most from this addition helping to create an entertainment district/corridor in our village center and downtown area. Banquet Hall The village currently has one existing banquet/reception hall, Warehouse 109, which has shown through its success the need for such facilities in the Page 3 8
9 area. While 109 has helped fill a void, their capacity is limited in size leaving more opportunity for facilities that can accommodate larger receptions over 200 people. Music Hall live music/entertainment venues provide an artistic outlet in the community while also serving as a draw to the local area for visitors that may have otherwise not visited. Industrial Focus The previous Village business plans identified the below industries that would be considered targeted industries and these industries still hold true today. Distribution facilities continue to become a necessary component in today s economic climate and the growth of these facilities is expected to continue. With limited space available in the Interstate 55 market, the village s industrial land will become a desirable location. Other industries that the village should target include: Beverage/Food Manufacturing Medical Devices & Instruments Advanced Electronic & Control Systems Scientific Research and Development including Biotechnology (Life Science) Advanced Materials & Chemicals Alternative Energy/Green Technology Communications & Information Technology Military/Homeland Security The Will County Center for Economic Development (CED) current primary focus of industry recruitment is in four broader categories including: Manufacturing, Transportation Logistics, Food, and Energy. With the recent implementation of Metronet s gigabit broadband infrastructure and Comcast s upgrading response to this implementation, the Village has positioned itself to be a more attractive location for many of these industries, specifically tech driven and military/homeland security complexes. Impact Fees & Land Cash Value As part of residential construction, a community collects impact fees to offset the burden that development may impose. Since 2010, the village itself has not collected any municipal impact fees to facilitate residential construction and development. The original impact fees included the annexation fee, municipal fee, and beautification fees were all eliminated, which typically totaled to $6, per home. The school districts and park districts have continued with the impact fee schedule previously used pre-recession. One component of the school/park impact fee is based on the land cash value (LCV) or fair market value of land, which is applied to a home construction when a development opts to pay a fee in lieu of providing park space or a 9 Page 4
10 school site. The LCV of school and park districts still remains the same since the prerecession era. Staff has researched neighboring communities impact fees along with their activity of single family construction. It has been found that communities are adjusting the fair market value of land as part of the land cash value. The village of New Lenox recently modified its fair market value from $130,000 to $111,000. The village of Oswego also amended their LCV changing it from $156,564 to $79,500, as well as Elgin, IL amending theirs from $143,793 to $85,000. Below is a table illustrating the existing LCV, its cost per home approximately and the municipal impact fees collected. The village is considering reinstituting a municipal impact fee and to modify the LCV of the school and park districts to appropriately represent today s true land value. The end goal of the adjustment is to ensure that the impact fees are not heavily increased if it all, but to remain consistent so not to deter the residential development community. Staff seeks the task force s input in this regard. Organization Plainfield Township Park District Plainfield Consolidated School District 202 LCV 4 Bed - SF Detached Impact Municipal Impact Fee $139,725 $5, $0 $139,725 $5, $0 Oswegoland Park District $124,200 $4, $0 Oswego Community USD 308 $124,200 $4, $0 New Lenox Districts $111,000 $1,870 Joliet Districts $109,556 $3,600 $4,100 $4,100 Oswego Districts $79,500 $0 Romeoville Districts $100,000 $2,317 N/A Bolingbrook Districts $160,000 N/A Shorewood School LC Fee $46,676 $1, $1,400 Shorewood Park LC Fee $46,676 $1, $1,400 Channahon School LC Fee $45,000 $2, $0 Channahon Park LC Fee $45,000 $2, $0 Minooka Districts $45,000 $0 Page 5 10
11 Advisory Task Force on Economic Development Agenda Item Report Agenda Item No Submitted by: Jake Melrose Submitting Department: Meeting Date: October 11, 2017 SUBJECT DOWNTOWN SHOPPING INITIATIVE Recommendation: ATTACHMENTS ED Downtown Shopping.pdf 11
12 October 11, 2017 ECONOMIC DEVELOPMENT TASK FORCE VILLAGE OF PLAINFIELD W. LOCKPORT ST. 2 nd FLOOR, CONFERENCE ROOM A SUBJECT: DOWNTOWN SHOPPING INITIATIVE SUMMARY Downtown Plainfield has seen strong growth and success with much of the credit due to the restauranteurs and the nightlife of downtown. While this is certainly a positive, the village s retail shopping continues to struggle. This is obviously not an uncommon issue as many smaller downtowns have dealt with this issue for many years; however, staff believes that in order to create a sustainable economic environment a balance is needed between retail restaurants and retail shopping. Currently, the downtown is heavily reliant on the successes of its restaurants to attract consumers to the area. By strengthening the retail shopping of the downtown, it will provide supplemental support to the restaurants as well as other shops in the downtown. Staff is researching multiple programming efforts to recruit new retail shopping businesses to the downtown that can provide a new small business with either a reimbursement grant for approved items or some other form of assistance. Elmhurst currently provides a maximum $10,000 reimbursement grant of 50% for qualified expenditures for retail shops and restaurants. Crystal Lake offers the same maximum amount of the grant with a 50% of reimbursable furniture, fixtures, and equipment (FFE) costs and $2,500 per full-time employee and $1,000 per part-time employee. There are also measures researched to incentivize existing store expansion of a certain size. Staff has interviewed businesses located in communities where programming exists as well as businesses that have left downtown and also operate a store in those communities. Each has said it was a determining factor in locating to that downtown because of the programming although it wasn t so much about the assistance, while it helped, but more about the fact that the community was investing in the downtown area. Village staff seeks the input of the task force in regards to economic programming specifically designed to recruit retail shopping. 12
13 Advisory Task Force on Economic Development Agenda Item Report Agenda Item No Submitted by: Jake Melrose Submitting Department: Planning Department Meeting Date: October 11, 2017 SUBJECT HOTEL FEASIBILITY STUDY Recommendation: ATTACHMENTS Hotel Feasibility Study.pdf 13
14 October 11, 2017 ECONOMIC DEVELOPMENT TASK FORCE VILLAGE OF PLAINFIELD W. LOCKPORT ST. 2 nd FLOOR, CONFERENCE ROOM A SUBJECT: HOTEL FEASIBILITY STUDY SUMMARY Village staff has been actively pursuing hotel developers for over a year also completing research in regards to the village s stay generation factors. Staff spoke with three of the village s largest employers Diageo, Logoplaste, and Chicago Bridge and Iron (CBI). The following are their required stays per week: Diageo: 10 visitors/week 2 night stay visitors three or four times a year some with 4 night stays 45 visitors in April 2017 stayed at Aloft in Bolingbrook Logoplaste: 6-8 visitors/week 2 night stay peaks where 20 rooms would be needed throughout the year currently sends visitors to higher-end hotels up north CBI: 2-4 visitors/week 2 night stay Peaks over 20 rooms would be needed through the year Currently sends visitors to Staybridge Suites in Aurora/Naperville The village s primary banquet facility, Warehouse 109, also generates numerous stays on the weekends with the average reception at guests also sending their guests to the Aloft. Staff has approached developers with this information and has also provided tours of the area and downtown as well. As part of each conversation, the village is asked if a hotel feasibility study has been completed. 14
15 A developer who visited and toured the area with staff was at first skeptical entering in the village, but after the tour and seeing the growth potential believed that a hotel feasibility would be justified. The study would provide critical information to a developer on the market potential for a hotel project that would be a necessity for any hotel development, while also providing site(s) recommendation and a proforma based off of a 3 star hotel with amenities comparable to the Aloft to retain those exiting consumers. The study will also identify weaknesses that the village may have, such as its winter month activities and draws. This will provide the village with the necessary feedback and information to begin to solve those weaknesses and issues, while still being able to provide a developer with the information they need to justify their commitment to a site. The village received three proposals each group were either recommended or considered in high regard from the hotel development groups staff spoke with. Each of the services and the studies provided would result in similar information, with each all having background working with municipalities on similar feasibility studies. Hotel Appraisers & Advisors - $12,000 all-inclusive No retainer required (preferable 50%) Contact: Hans Detlefsen HVS Chicago - $9,000 (exclusive of out-of-pocket costs) Retainer = $7,000 to begin services Contact: Stacy Nadolny TR Mandigo & Company - $9,500 (exclusive of out-of-pocket costs) Retainer = $3,500 to begin services Contact: Ted Mandigo Out-of-pocket expenses may include, but not limited to mileage, meals, accommodations, research costs, report production, etc. For instance, a STR report illustrating area hotel performance and operating ratios generated would cost $475 each. Staff seeks the task force s input and recommendation on moving forward with a hotel feasibility. 15
16 Advisory Task Force on Economic Development Agenda Item Report Agenda Item No Submitted by: Jake Melrose Submitting Department: Planning Department Meeting Date: October 11, 2017 SUBJECT NETWORKING EVENT Recommendation: ATTACHMENTS 2017 Networking Showcase Event.pdf 16
17 October 11, 2017 ECONOMIC DEVELOPMENT TASK FORCE VILLAGE OF PLAINFIELD W. LOCKPORT ST. 2 nd FLOOR, CONFERENCE ROOM A SUBJECT: NETWORKING AND SHOWCASE EVENT SUMMARY In September of 2016, village staff held its first networking event to showcase some of the village s development opportunities. Village staff will be holding a similar event on Thursday, November 2, 2017 at Warehouse 109. This year staff will be looking to provide a quick introduction/thank you to those that come with a brief discussion of development opportunities in the village. As part of the event, those attending will be provided with a mini-tour/open house of Tailwinds Distillery, coffee from Ten Drops and a stop at Werk Force Brewing s new taproom at the end of the event. Staff is still considering food options currently and seeks the task force s input in regards to the event. 17
18 Advisory Task Force on Economic Development Agenda Item Report Agenda Item No Submitted by: Jake Melrose Submitting Department: Planning Department Meeting Date: October 11, 2017 SUBJECT ECONOMIC DEVELOPMENT UPDATE Recommendation: ATTACHMENTS 18
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