Kendall County Times

Village of Oswego President and Board of Trustees met Jan. 21.

Here are the minutes provided by the board:

CALL TO ORDER AND PLEDGE OF ALLEGIANCE

President Ryan Kauffman called the meeting to order at 7:02 p.m. President Kauffman provided the following about Roger Matile:

Roger A. Matile, 78, is a lifelong resident of the Oswego area. He and his wife of 59 years, Sue Musselman Matile, are both 1964 graduates of Oswego High School. His two children are graduates of Oswego High School, and his twin grandchildren are members of the OHS Class of 2025. On May 27, 1976, he was elected to the Oswegoland Heritage Association’s first board of directors and served as the group’s president for two years. In 1977 he helped coordinate the heritage association’s restoration of Oswego’s landmark: Little White School Museum. He has served as the volunteer director of the Little White School Museum since August 1994. He began his interest in public history in 1974 when he joined the Kendall County Bicentennial Commission. In 1977, he began writing a local history column for the Fox Valley Sentinel. When the Sentinel merged with the Oswego Ledger in 1980 forming the Ledger-Sentinel, he became the new paper’s editor. He also wrote a local history column as well as working as the paper’s education beat reporter, photographer, and graphic artist.

Although he retired in 2008, his local history “Reflections” column still appears twice monthly in Shaw Media newspapers. He also writes about local history at his “History on the Fox” blog. In addition to the Oswegoland Heritage Association, he is a member of the Illinois State Historical Society and the American Association for State and Local History and has earned professional and community recognition for both public service and journalism excellence.

Roger Matile led us in the Pledge of Allegiance to the Flag of the United States of America.

ROLL CALL

Board Members Physically Present: President Ryan Kauffman; Trustees Tom Guist, Kit Kuhrt, Karin McCarthy-Lange, Karen Novy, Jennifer Jones Sinnott, and Andrew Torres.

Staff Physically Present: Dan Di Santo, Village Administrator; Jean Bueche, Asst. Village Administrator; Tina Touchette, Village Clerk; Jason Bastin, Police Chief; Curt Cassidy, Incoming Public Works Director; Jennifer Hughes, Public Works Director; Andrea Lamberg, Finance Director; Rod Zenner, Development Services Director; Kevin Leighty, Economic Development Director; Bridget Bittman, Communications Manager; Phil Tartaglia, Deputy Director PW/Village Engineer; and Dave Silverman, Village Attorney.

RECOGNITIONS/APPOINTMENTS

D.1 Proclamation- Little White School Museum 175th Year

President Kauffman asked Roger Matile, Judy Wheeler, Jose Noce and Kristie Vest to come forward. President Kauffman read the proclamation and presented them with a copy. Pictures were taken.

Roger Matile stated: this is a really nice honor the Village is giving us; it has been 25 years of a lot work by a lot of people to restore the museum; all are welcome to come over and see the gallery; there has been terrific growth in the Village; when he was a kid, the population sign was 1,210 and now it’s over 34,000; thank you for the recognition and to those who saved Oswego’s heritage; we’re happy to have been able to save what we could and save paradise before they paved over it into a parking lot.

It was also noted that the museum is always looking for volunteers.

D.2 Business of the Month Recognition - Fox River Academy of Music & Art

President Kauffman asked Karen Kulzer and Ron Stark of Fox River Academy of Music & Art, EDC members, and Kevin Leighty to come to the front. He stated the following:

I’d like to extend our congratulations to the Fox River Academy of Music & Art for being featured as the Economic Development Commission’s Business of the Month for January. Each month, the Economic Development Commissioners nominate and vote on a business to feature which has demonstrated significant involvement in the Oswego community. This month features Fox River Academy of Music & Art, which is owned by Karen Kulzer and Ron Stark. Karen and Ron started Fox River Academy in 2003 and in all that time, have encouraged arts appreciation through education. Their mission is to offer exceptional educational experiences to each student and the classes are designed to create a positive and supportive learning environment that encourages students to reach or exceed their personal goals. Fox River Academy is highly active in the local community including participating in several events including the Hometown Expo, Prairie Fest, and the Farmers Market among others. They also have various community art projects displayed around Oswego ranging from benches to quilt squares. Karen herself organizes and manages the Art Exhibit for the Hometown Expo which had 350 entries last year. Karen and Ron can be frequently seen at the Farmers Market during the summer either doing community art projects or accompanying local students who have been given the opportunity to perform at the market. Fox River Academy is a member of the Oswego Area Chamber where Karen serves on the Board of Directors. Karen has also helped organize the Downtown Association along with their many events throughout the year. I ask you to please join me once again in congratulating Fox River Academy for being the January 2025 Business of the Month and thanking them for all the contributions they have made to our community.

President Kauffman presented them with a certificate of recognition. Pictures were taken.

Karen Kulzer thanked President Kauffman, the Village Board, and the Economic Development Commission; her husband grew up in Oswego and when they were looking for a location back in 2003, they chose Oswego; it started with three teachers and thirty students and is now 30 teachers and 450 students; they love being part of the community with many more years to come. Ron Stark stated he moved to Oswego in 1975, and Fox River Academy of Music & Art wouldn’t be a business without the people of Oswego.

PUBLIC FORUM

Public Forum was opened at 7:20 p.m.

Daniela Garay addressed the Board regarding noise coming from the Sam’s Distribution Center behind her home; she lives in Farmington Lakes and her backyard backs up to the distribution center; they are woken up in the middle of the night by the trucks and excessive noise; she is a teacher as SD308; neighbors have called 911; she has not measured the decibels; she asked that the Village look at the noise ordinance. Staff will look into the complaint and get back to her.

Sam Leonard addressed the Board regarding noise coming from the Sam’s Distribution Center; he is Daniela’s neighbor; he has lived in Farmington Lakes for five years; the noise is loud and shakes his house; truckers are on the back side of the hill; he described the noise being made; the distribution center runs 24/7, 7 days a week; whether there is somewhere else they can work on the trucks; they need help with controlling the noise. Staff will look into the complaint and get back to him.

David Pawlowski addressed the Board regarding Fifth & Bluegrass; he lives in Churchill by this intersection; concerned with the number of accidents; he knows there is criteria that needs to be met to warrant a stop sign; wants to know how often studies are taken and what the results are; cars on the sidewalk as a result of accidents; the crosswalk light is not working; children cross the road to go to school. Administrator Di Santo noted a study is underway and should have results in 2-3 weeks. The study will include number of accidents, number of vehicles, whether there are obstructions present, and speed of vehicles. There are standards that need to be met for stop signs to be installed.

Katie Heiden addressed the Board regarding School Board running mate for SD308; she is a local community member and is part of the trades; symbol of unity; eight generations of masonry; vote for her in April.

There was no one else who requested to speak. The public forum was closed at 7:33 p.m.

STAFF REPORTS

There were no staff reports.

CONSENT AGENDA

G.1 January 7, 2025 Committee of the Whole Minutes

G.2 January 7, 2025 Regular Village Board Minutes

G.3 January 7, 2025 Closed Session Minutes, Approve but Not Release

G.4 Resolution Authorizing a Contract with Marc Kresmery Construction, LLC for the Middle Zone Booster Station – Forest Avenue Project in the Amount of $330,060.00. Pulled for separate vote.

G.5 CY25 Police Department Vehicle Purchases:

a) Resolution Authorizing the Purchase of Two 2025 Ford Explorer Actives (XLTs) from Hennessy’s Riverview Ford in the Amount of $92,171.00 and Waiving of the Competitive Bidding Requirement.

b) Resolution Authorizing the Purchase of Two Chevrolet Equinox LT AWD from Ron Westphal Chevrolet in the Amount of $61,427.40 and Waiving of the Competitive Bidding Requirement. G.6 Resolution Authorizing the Village President to Sign a Franchise Termination and Settlement Agreement with CMN-RUS, Inc. (Metronet).

G.7 Ordinance Authorizing the Disposal of Surplus Property Owned by the Village of Oswego (Squad 24 And PW06).

G.8 Resolution Authorizing a Contract with Homer Tree Service for the Wolfs Crossing Tree Removal Project, Douglas Segment, in the Amount of $228,314.50.

G.9 Resolution Authorizing a Contract with Baxter & Woodman, Inc. for the Middle Zone Booster Station – Forest Avenue Project Construction Management Services in the Amount of $24,000.00.

G.10 Resolution Authorizing a Contract with Alfred Benesch & Company (Benesch) for Construction Management Services for the Wolfs Crossing Tree Removal Project- Douglas Segment in the Amount of $28,013.00.

A motion was made by Trustee Jones Sinnott and seconded by Trustee McCarthy-Lange to approve the Consent Agenda; Approving the January 7, 2025 Committee of the Whole Minutes; Approving the January 7, 2025 Regular Village Board Minutes; Approving but Not Releasing the January 7, 2025 Closed Session Minutes and Approving the following ordinance and resolutions:

Ordinance No. 25-03; Ordinance Authorizing the Disposal of Surplus Property Owned by the Village of Oswego (Squad 24 And PW06).

Resolution No. 25-R-06; Resolution Authorizing the Purchase of Two 2025 Ford Explorer Actives (XLTs) from Hennessy’s Riverview Ford in the Amount of $92,171.00 and Waiving of the Competitive Bidding Requirement.

Resolution No. 25-R-07; Resolution Authorizing the Purchase of Two Chevrolet Equinox LT AWD from Ron Westphal Chevrolet in the Amount of $61,427.40 and Waiving of the Competitive Bidding Requirement.

Resolution No. 25-R-08; Resolution Authorizing the Village President to Sign a Franchise Termination and Settlement Agreement with CMN-RUS, Inc. (Metronet).

Resolution No. 25-R-09; Resolution Authorizing a Contract with Homer Tree Service for the Wolfs Crossing Tree Removal Project, Douglas Segment, in the Amount of $228,314.50. Resolution No. 25-R-10; Resolution Authorizing a Contract with Baxter & Woodman, Inc. for the Middle Zone Booster Station – Forest Avenue Project Construction Management Services in the Amount of $24,000.00.

Resolution No. 25-R-11; Resolution Authorizing a Contract with Alfred Benesch & Company (Benesch) for Construction Management Services for the Wolfs Crossing Tree Removal Project Douglas Segment in the Amount of $28,013.00.

Aye: Tom Guist Kit Kuhrt

Karin McCarthy-Lange Karen Novy

Jennifer Jones Sinnott Andrew Torres

Nay: None

The motion was declared carried by an omnibus roll call vote with six (6) aye votes and zero (0) nay votes.

Pulled for separate vote:

G.4 Resolution Authorizing a Contract with Marc Kresmery Construction, LLC for the Middle Zone Booster Station – Forest Avenue Project in the Amount of $330,060.00. Resolution No. 25-R-05

Board and staff discussed: whether this station is the same as the one at Wolfs Crossing; will be replacing pressure release valve; will be underground; whether there are plans to put signage on the building; could add landscaping and signage. There was no further discussion.

A motion was made by Trustee McCarthy-Lange and seconded by Trustee Torres to approve a Resolution Authorizing a Contract with Marc Kresmery Construction, LLC for the Middle Zone Booster Station – Forest Avenue Project in the Amount of $330,060.00.

Aye: Tom Guist Kit Kuhrt

Karin McCarthy-Lange Karen Novy

Jennifer Jones Sinnott Andrew Torres

Nay: None

The motion was declared carried by a roll call vote with six (6) aye votes and zero (0) nay votes.

BILL LIST

H.1 Approve Bill List Dated January 21, 2025, in the Amount of $6,489,901.89.

A motion was made by Trustee Jones Sinnott and seconded by Trustee Novy to approve the Bill List Dated January 21, 2025, in the Amount of $6,489,901.89.

Aye: Tom Guist Kit Kuhrt

Karin McCarthy-Lange Karen Novy

Jennifer Jones Sinnott Andrew Torres

Nay: None

The motion was declared carried by a roll call vote with six (6) aye votes and zero (0) nay votes.

OLD BUSINESS

There was no old business.

NEW BUSINESS

J.1 Ordinance Approving an Economic Incentive Agreement by and Between the Village of Oswego and Premier Investments, LLC (76-78 Main Street). Ordinance No. 25-04

Director Leighty addressed the Board regarding the incentive agreement. The general purpose of the economic development incentive award program is to aid in property improvements which enhance Oswego’s downtown business district. The financial incentive application under consideration is for substantial renovations being made to the building located at 76-78 Main Street. The applicant is requesting $39,930 in grant funding to help offset the high construction that exists in the current market. The requested incentive amount is based on a total project budget of up to $132,075. The scope of work includes siding installation and brick tuckpointing as well as renovations to the roof, awning, soffit, gutter, and downspouts.

Board and staff discussed: an awning is not required; commend the applicant and appreciate his effort; this is exactly what the grant is intended to do; $40,000 will be left in the grant program after this application is approved; Premier is the ownership group, Elite is the property management. There was no further discussion.

A motion was made by Trustee Jones Sinnott and seconded by Trustee Torres to approve an Ordinance Approving an Economic Incentive Agreement by and Between the Village of Oswego and Premier Investments, LLC (76-78 Main Street).

Aye: Tom Guist Kit Kuhrt

Karin McCarthy-Lange Karen Novy

Jennifer Jones Sinnott Andrew Torres

Nay: None

The motion was declared carried by a roll call vote with six (6) aye votes and zero (0) nay votes.

J.2 Resolution Approving and Authorizing the Execution of a Vacant Land Sales Contract for the Purchase of Property Described as Lot 7 of Stonehill Business Park Unit #1. Resolution No. 25-R-12

Administrator Di Santo addressed the Board regarding the purchase of Lot 7. Staff worked with the owner of Lot 7, US Team Holding, LLC, and negotiated the following contract terms:

• $600,000 purchase price for the property (earnest money of $25,000).

• Waiver of seller’s credit towards payment of 2024 and 2025 property taxes when they come due (2023 taxes were $7,447.16).

• Due diligence of 30 days and closing 45 days after due diligence (or such earlier dates as agreed by the parties).

• Seller to provide the existing survey and a certification that nothing has changed. • Each party is responsible for paying any broker commissions to their own broker.

In a traditional transaction, the buyer’s broker would be paid a 2.5% commission by the seller. In Illinois, following an antitrust settlement between the US Department of Justice and the National Association of Realtors, beginning on August 17, 2024, sellers are no longer required to pay the buyer’s broker fee. In this case, discussions began between brokers for the buyer and seller, but no deal was made. Subsequently, non-broker representatives from each party negotiated and consummated the deal, with the agreement that each side make their own decision on payment to their respective brokers. Board direction is needed on a broker payment. Staff recommends a minimum of 1% fee to be paid to the Village’s broker ($6,000), recognizing services rendered (research, advice, drafting LOIs, discussions with the seller’s broker), but ultimately not completed.

Board and staff discussed: whether the broker would have been able to get the same deal; kudos to Rachel Riemenschneider in finding the phone number to contact the attorney. Board consensus was given to pay the 1% broker fee. There was no further discussion.

A motion was made by Trustee Jones Sinnott and seconded by Trustee Torres to approve a Resolution Approving and Authorizing the Execution of a Vacant Land Sales Contract for the Purchase of Property Described as Lot 7 of Stonehill Business Park Unit #1.

Aye: Tom Guist Kit Kuhrt

Karin McCarthy-Lange Karen Novy

Jennifer Jones Sinnott Andrew Torres

Nay: None

The motion was declared carried by a roll call vote with six (6) aye votes and zero (0) nay votes. J.3 Ogden Falls Boulevard Traffic Impact Study

a) Resolution Authorizing the Execution of a Professional Services Agreement with HR Green in the Amount of $37,036.11 for Ogden Falls Boulevard Traffic Impact Study and Concept Geometry, Subject to Village Administrator Review. Resolution No. 25-R-13

Director Leighty addressed the Board regarding the traffic impact study. In early 2023, staff was approached by the owners of the three properties located near the southeast corner of Route 34 and Ogden Falls Blvd (behind the Shell gas station) about challenges they have had marketing the properties due to site access and dividing the land. The owners have had development interest in the south parcel for residential and the Rt. 34 frontage for commercial. However, since IDOT will not grant them full access to the sites on Route 34, any potential buyer would need assurances that they are able to at least have full access on Ogden Falls Blvd. They are asking for the Shell gas station’s full access be converted to right-in/right-out, the median be removed, and the access drive to the subject properties be granted full access. Because of the access drive’s close proximity to Route 34, IDOT must agree to the proposed roadway modifications. IDOT has already stated that they will not consider any modifications to the intersection without a traffic study having been completed first.

The Village budgeted funds in the CY25 budget to complete the study. Based on the Board’s discussion at the Budget Workshop on November 2, 2024, staff was also directed to draft a recapture ordinance to ensure that the Village’s cost was completely recouped. The proposed recapture applies to the properties outlined in red in Figure 1 as well as the 1.3-acre property located immediately to the east.

The purpose and scope of the study is to analyze the future traffic and turning movements, evaluate the impacts to the existing roadway network as a result of potential commercial development opportunities, investigate access improvements that could help spur developer interest, evaluate up to four access alternatives for prospective developer, and provide the necessary information to decide on the access request. Once the study is completed, the results will be submitted to IDOT to better evaluate the potential for modifications being made to the existing roadway layout. Staff is confident that IDOT’s determination will help make way for new development on the subject property. The recapture ordinance is activated upon the sale or development of the subject properties. The Village will be reimbursed within 48 hours of the closing date should the property be sold, or prior to the issuance of any building permits should the current owner choose to develop the properties themselves. Should the property not be sold or developed within three (3) years of the agreement being executed, the amount due to the Village for reimbursement will collect interest at a rate of 4% monthly. While there is some risk in paying for the study up front, staff is confident that development activity will occur in the near term since the current owner has already been aggressively marketing the site and received prospective development interest. The completion of the traffic impact study could be the catalyst to help finally move development plans forward.

Board and staff discussed: current landlords do not work nice together; will take a month for the study; strongly support getting development in the area; whether there is a potential that the study will work against us; confident this will be good; possible that the summary will warrant a stoplight; will be valuable to have this information and know what can and can’t be done going forward; breakdown of the recapture is based on the size of the properties; reimbursement will be annually, not monthly; don’t think we should get in the habit of doing this; could be a domino effect for development in this area; will get money back eventually. There is a typo in the recapture agreement that needs to be fixed. There was no further discussion.

A motion was made by Trustee Kuhrt and seconded by Trustee Novy to approve a Resolution Authorizing the Execution of a Professional Services Agreement with HR Green in the Amount of $37,036.11 for Ogden Falls Boulevard Traffic Impact Study and Concept Geometry, Subject to Village Administrator Review.

Aye: Tom Guist Kit Kuhrt

Karin McCarthy-Lange Karen Novy

Jennifer Jones Sinnott Andrew Torres

Nay: None

The motion was declared carried by a roll call vote with six (6) aye votes and zero (0) nay votes.

b) Ordinance Approving and Establishing a Recapture for Certain Public Improvements. Ordinance No. 25-05

A motion was made by Trustee Kuhrt and seconded by Trustee Torres to approve an Ordinance Approving and Establishing a Recapture for Certain Public Improvements, and Modifying the Interest Rate to 4% Annually; Subject to Village Administrator Review.

Aye: Tom Guist Kit Kuhrt

Karin McCarthy-Lange Karen Novy

Jennifer Jones Sinnott Andrew Torres

Nay: None

The motion was declared carried by a roll call vote with six (6) aye votes and zero (0) nay votes.

J.4 Ordinance Approving the Fourth Amendment to the Redevelopment Agreement Between the Village of Oswego and the Reserve at Hudson Crossing, LLC. Ordinance No. 25-06

Administrator Di Santo addressed the Board regarding the amendment to the RDA. Construction for the North Building of the project is estimated to cost $28.4M (up 47% since 2019) and is expected to generate $500,000 annually in TIF increment that will be used to pay the debt service on the net $3M bond issuance to fund the second parking garage and other TIF eligible improvements. By the end of the TIF in 2040, the North Building is expected to generate $600,000 in excess TIF increment that would be split 50/50 between Shodeen and the Village per the terms of the RDA. Per the RDA, the North Building of the project will also be eligible for $321,694 in Village grant dollars (remaining amount from the original $900,000 grant).

Timeline:

⮚ On March 21, 2017, the Village entered into a Purchase and Sale Agreement (PSA) with Shodeen Group, LLC (Shodeen) for the development of the former Alexander Lumber site. On December 11, 2017, the Village entered into a Redevelopment Agreement (RDA) with Shodeen and extended the PSA’s due diligence period by 180 days.

⮚ On June 5, 2018, the Village Board approved the First Amendment to the RDA, which extended deadlines for Shodeen to secure financing, provide a construction schedule, and purchase additional properties along Adams Street.

⮚ On July 17, 2018, the Village Board approved the Second Amendment to the RDA and PSA, splitting the project into two phases (first the South building and then the North building) and redesigning the south building to increase the number of residential units and public parking spaces.

⮚ On November 13, 2018, the Village Board approved the Third Amendment to the RDA to revise the funding split between the South Building and the North Building, shifting $1,500,000 in bond funds originally set aside for the North Building and used for the South Building, modify the façade grant terms, and make related changes.

⮚ In May of 2022, the Village approved a Minor Amendment to the PUD to allow for some minor elevation changes. The original plan provided for the garage portion of the structure to be constructed with tilt up concrete panels. The approved revised plans allow for the parking structure to be built with pour in place concrete which would then be wrapped in brick.

Shodeen completed construction of the South Building on August 10, 2021. Per the RDA, construction on the North Building was to commence on February 10, 2023, with substantial completion by August 10, 2024. Due to numerous factors including the global COVID-19 pandemic, sharp increases to the prices of construction materials and labor, and rising interest rates, Shodeen was not able to secure the financing to make the project deadline. With inflation now stabilizing and interest rates lowered, Shodeen has now provided the proof of financing necessary to begin the project. However, since the original February 10, 2023, deadline has passed, a 4th RDA amendment is now necessary to allow the project to proceed.

Summary of Changes

Section 2(A), 6(D), and 6(G) - Parking Garage

The original plan for the north building called for 104 residential units and 119 parking spaces to be located within the garage structure. Due to the columns necessary to support the structure, only 118 of the 119 required vehicle parking spaces can be accommodated; however, the latest design also provides 7 motorcycle parking spaces that were not included in the original plans. In reviewing the plans, staff is recommending the removal of one (1) parking space on each level for a total of two (2) spaces to be used to enhance vehicle turn around space for users of the parking deck. The total number of spaces is 123 (116 vehicle parking spaces, and 7 motorcycle spaces).

Section 7 - Construction Schedule

Section is amended to reflect the revised construction schedule for the North Building. Per the Agreement, Construction will commence no later than June 1, 2025, with completion around September of 2026.

Section 9 – Development Financing and Monitoring

Section has been amended to reflect the change in the schedule. Executed financing agreements are to be in place by May 15, 2025. The Village will have authority to terminate its obligations concerning the North Building if Shodeen fails to meet this deadline.

Bond and Grant

The original RDA established that the Village would issue $16M in bonds to finance the public parking garages and other TIF eligible improvements. The RDA also granted Shodeen $900,000 as an economic incentive to upgrade the materials on the building’s façade. The proposed RDA amendment does not alter these financial terms. For the South Building, the Village issued $13M in bonds and awarded $578,306 in grant funds. That leaves $3M remaining in net bond proceeds and $321,694 remaining in grant funds for the North Building. According to our underwriters, a loan net $3M bond issuance is not attractive to the market, but with the upcoming ~$50M bond issuance the Village is planning this spring for the Lake Michigan water connection, the combined ~$53M in net bond proceeds is attractive, would garner a lower interest rate, and would reduce the Village’s bond issuance costs. The timing works out well to combine these two bonds, and Shodeen is flexible to allow the issuance to occur on the Village’s timeline. The debt service for the South Building will be paid using TIF increment generated by the Reserve, and any shortfall will be covered by the underlying SSA or a direct payment by Shodeen. Once constructed, the Village will also own the two-level parking deck at the North Building. Per an analysis from our financial consultant, at the end of the life of the TIF in 2040, there may be an estimated $600,000 in excess increment from the North Building and $1M from the South Building, which would be split $800,000/$800,000 between the Village and Shodeen.

Recommendation

Staff believes this development benefits the Village and especially the downtown by providing $28.4M in new investment, creating numerous construction jobs, adding 104 new residential units of potential customers to downtown Oswego and other businesses, constructing a Village-owned 123- space public parking deck, and likely receiving $800,000 in excess increment at the end of the TIF. The two-year delay in construction is justifiable given the turn of events from 2020 to present, and the developer has proven their readiness to start construction in March.

Board and staff discussed: financing has always been razor thin for this building; no projects like this in Kendall County; how many parking spaces for residents of the building; residents can park in either building; garage will be full in the overnight hours; 1.1 parking spots per unit in the south building; 176 units if fully rented; more parking available during the day; paying of a parking deck that people complain about; don’t have retail filled in the south building; expenses that the Village takes on; property tax paid; structured parking in the downtown; developer is paying the tax; RDA has language to pay back the Village; maintenance cost of the garage is being paid through permit fees for the parking spaces; outside factors we didn’t account for the first time; don’t agree with sharing the revenue at the end of the TIF; take the sharing of revenue out of the agreement; sharing of revenue was in the agreement from the beginning; if Shodeen doesn’t get the revenue share, they won’t build; vacant storefronts; Village has waived permit fees; whether fire department fees were waived; have had 7-8 tenant prospects; upfront buildout costs are challenging; $1-1.5 million for just the buildout; doesn’t benefit Shodeen to have empty storefronts; need more people in the downtown; TIF eligible expenses; don’t want to waive future permit or inspection fees; have not given deals with any other developers; we overpaid; hard to believe TIF split is in the proforma; deadlines need to be met or subject to reverter clause; could have a discussion on cutting ties with Shodeen; wanted to allow time for Shodeen to get financing; Village does not want to own the south building and only half of the north property; whether there was any point Shodeen was ready to develop prior to now; held up by financing and finding a lender; if Shodeen can’t get financing, they will not build; both sides are losing increment; high interest rates and construction costs; frustration with the delays; have been upfront with the Village and have a great relationship with staff; want ability to keep this on schedule; amend the agreement to edit the reverter; Shodeen not willing to negotiate the reverter; lender is not going to wait two weeks if there is no vote tonight; need to have some skin in the game to keep the project on schedule; RDA expires June 1, 2025; can say this is the last amendment if not started by June 1, 2025; if this amendment doesn’t happen, then we both have properties that are useless; Shodeen has final letter from the bank; want the project to happen, but the Village has no leverage; these types of projects are difficult; Village owns west half of the north property; concerns with financing; whether there is a chance of losing financing; earliest closing is the end of February with construction starting in March; lender is new to Shodeen; Shodeen has six other projects of this size; the leverage is the property goes back to the Village if they don’t start construction by June 1st but the Village will lose the revenue sharing at the end of the TIF; north parcel is limiting; changing the RDA so the reverter clause leaves the Village whole; the Board will not approve another amendment; would like Shodeen to be more flexible with costs and leases; lease reductions can cause issues; rental rates are down; reasons and issues on why they haven’t built; downtown wants more shoppers; if COVID hits again, we have no leverage; having to pull bonds; we have waited for three years; we have no recourse and Shodeen is holding all the cards; Shodeen didn’t meet the agreement; capital investments into the community; bonds wouldn’t be issued if the project doesn’t move forward; when more residents come in, it diminishes the cost of water; as we grow, it will diminish the water rates; only vote is to vote yes; the fact that Shodeen is not willing to negotiate is because they know they have the upper hand; Shodeen not willing to sleep on it for two weeks; rental occupancy at full capacity in the south building; it’s at 94% rented; rent is $2,200-$3,100/month. There was no further discussion.

A motion was made by Trustee McCarthy-Lange and seconded by Trustee Guist to approve an Ordinance Approving the Fourth Amendment to the Redevelopment Agreement Between the Village of Oswego and the Reserve at Hudson Crossing, LLC.

Aye: Karin McCarthy-Lange Karen Novy

Jennifer Jones Sinnott Andrew Torres

Nay: Tom Guist Kit Kuhrt

The motion was declared carried by a roll call vote with four (4) aye votes and two (2) nay votes.

TRUSTEE REPORTS

Trustee Guist- enjoyed seeing the community engagement unit with the police department; great idea and excited to see it go on; would like to see the grocery tax discussion soon. Administrator Di Santo noted that everyone is waiting on a grocery tax discussion but will get more information.

Trustee McCarthy-Lange- community engagement unit is awesome; congratulations to Fox River Academy and the Little White School Museum; don’t know if a traffic study at Churchill will be a true indication during cold weather; get counts now and revisit later; Farmington Lakes has been complaining about noise since 2003; the noise is probably worse now and should be looked into.

Trustee Torres- congratulations to Fox River Academy; huge fan of them; thank you for the Shodeen discussion; all of us should celebrate when it’s completed; stay safe and check water pipes.

Trustee Novy- congratulations to Fox River Academy; great to have them in our community; daughter went there and is now a music teacher; attended Kauffee with the Mayor; great to hear from the fire department; attended the legislative breakfast.

Trustee Kuhrt- congratulations to Jean on the office change; was at Village Hall all day.

Trustee Jones Sinnott- great to open the water bill and see a flyer with options on how to pay the bill by a scheduled date; shoutout and apologies for not being able to attend the community engagement; thank you to Chief; legislative breakfast was great; thank you to staff for putting this together; community members need to hear the conversation with Shodeen.

PRESIDENT’S REPORT

Wonderful we can have our say and go back to being neighborly; productive discussion; thank you to Roger Matile and congratulations on 175 years; thank you for all who attended the legislative breakfast; forum is good when all are together; congratulations to Fox River Academy; thank you to everyone who attended Kauffee with the Mayor; great presentation from Chief Bastin and Chief Flanders; thank you for the community engagement unit.

Continued discussion regarding the Committee of the Whole public forum request from Jim Wilhelm inquiring into assistance with helping those affected by the fires in California: Is there anything the Village can do; whether we should get involved; need to find out if they need water; whether we contribute money; staff will take the lead and see if Trustee Jones Sinnott can also find more information; water is approximately $200/pallet; Village could simply be a resource; all we need to do is give him credibility and get him connected to someone; Trustee Jones Sinnott can get him connections, validate and verify; could help with social media outreach; Administrator Di Santo will reach out to Yorkville.

CLOSED SESSION

There was no closed session.

ADJOURNMENT

A motion was made by Trustee McCarthy-Lange and seconded by Trustee Guist to adjourn the meeting; upon a voice vote with all remaining members voting aye, the meeting was adjourned at 9:50 p.m.

https://www.oswegoil.org/home/showpublisheddocument/7715/638749626311600000