Board of Trustees Minutes

Acting President Packham called the Meeting to Order at 7:30 P.M.

PRESENT: Trustees William Manton, Rodney Craig, Lori Kaiser, Joseph Nicolosi, Wesley Eby, and Acting President Robert Packham

ABSENT: None

ALSO PRESENT: Village Manager Marc Hummel and Corporation Counsel Norman E. Samelson

Everyone joined in the Pledge of Allegiance.

Motion by Trustee Manton and seconded to Place Items 5-A.3, 4, 6, 7-A.1 and 2 on a Consent Agenda. Roll call:

AYES: Manton, Craig, Kaiser, Nicolosi, Eby, Packham NAYS: None

ABSENT: None
Motion carried – Placed Items 5-A.3, 4, 6, 7, 7-A.1 and 2
on a Consent Agenda.

Motion by Trustee Manton and seconded to go to Executive Session to discuss Personnel – Section 2(C)(1) following the meeting and not return for action. Roll call:

AYES: Manton, Craig, Kaiser, Nicolosi, Eby, Packham NAYS: None

ABSENT: None
Motion carried – Approved Executive Session

Mr. Hummel stated this topic was related to the purchase of Prairie Station Apartments by Jackson Square Properties. He noted this item was discussed at the last meeting and Mr. Jeffrey E. Jaeger was again present to further the discussion. He commented the proposal was for a letter of approval from the Village to the Illinois Department of Housing Authority (IDHA) to provide low to moderate income housing within the Village.

Mr. Jaeger walked through the benefits they proposed, which included nearly $5 million renovation to the complex. He noted the complex was built in the 1970’s and they would replace the siding, roofs, exterior, and the entire interiors would be completely renovated. He mentioned their references from Bolingbrook as well. He noted additional benefits would be proper resident screening at the property, such as income qualifications. He stated if they did not receive the letter of support, the property would remain under status quo, with no improvements and further deterioration.

Mr. Jaeger pointed out the various income level of those working in the city with discounts to a preferred employer program and for public service employees living in the property. He addressed the 30 year restriction and stated IDHA reduced this to a 15 year restriction. It was questioned if the Jackson Square Properties commitment changed and Mr. Jaeger stated they would own the property for 15 years as well. The relocation of residents not considered low income was questioned and Mr. Jaeger stated they would relocate them and there were 50 units. He noted they would either buy out their leases or relocate the residents.

He stated they consistently maintained the quality of their properties. He noted their requirements were that the residents had to prove employment history for six months, they would run a credit report, rental history, call references, and run a full criminal background check statewide, as well as an out-of-state background check if they came from another state. He stated reasons for automatic denials were: eviction for cause by a landlord, any unresolved debts to a previous landlord or mortgager, felony convictions, falsification of any information on the rental application, and the right to evict if false information was provided up front, as well as anyone in the process of filing for bankruptcy. He noted their lease agreement was updated each year and only the person on the lease was allowed to occupy the apartment, noting they looked for over-occupancy. He stated many problems occurred when there were several people in the apartment and not all were on the lease. He continued the residents had to make the apartment available for inspection upon 24-hour notice and they had to comply with all the rules and regulations. He stated illegal activity allowed for eviction, not only at the property but illegal activity reported in a city that reported to them as well. He stated the resident must maintain functional smoke detectors in the apartment and the landlord had the right to bar guests from entering the premises if found to be a problem. He noted the resident must also maintain clean common areas. Finally, he stated all vehicles without proper parking identification would be towed, noting they had a tow company contract that would come out once per week at night towing cars that were not registered.

He stated residents must also maintain good neighborly conduct. He then stated they included IDHA information that was requested at the last meeting. The screening process was questioned and answered it was Jackson Square Properties’ company policy, noting their policy was stricter than IDHA’s policy.

The on-site presence was questioned and again answered it was their policy. Mr. Jaeger noted IDHA’s policy was geared more for health and safety, such as smoke detectors, etc. The handicap resident was addressed and noted it was not part of their program, except to state their common areas were ADA accessible.

The cost of relocation was questioned and Mr. Jaeger stated they paid the cost to relocate. It was questioned for those staying, what happened to them during renovation and Mr. Jaeger stated there were two alternatives: 1) they would provide an alternative apartment temporarily; or 2) they had an occupied renovation process, where as they would remain during the 6-day renovation process, using their apartment each evening.

It was also questioned if Jackson Square Properties went out of business, it was answered that it would be up to the new owners to continue the arrangement with IDHA or not. It was questioned how long Jackson Square Properties had been operating and answered for about 25 years they had been buying property and Mr. Jaeger stated he had been with the company for 5 years. It was questioned how many properties they owned where they had used IDHA and answered this was their second. It asked if they had it in other states and answered out of 8,000 units, approximately 4,000 units were part of state private capital financing programs and noted the program had been in existence since 1986 and his partners had been doing this for 15 to 20 years. The screening process was questioned and answered they consistently maintained this process across the country. He noted if they dropped their level of screening in the beginning, they paid for it later, perhaps dealing with an eviction 3-4 months later, so their incentive was to maintain the high quality screening process.

The option of their 30-day written notice and the resident 60-day written notice was questioned, stating a 30-day written notice for the resident should be ample. Mr. Jaeger stated they had to give 30-day written notice of non-renewal of the lease, and the residents had to give 60-days. It was again noted it was typically 30 days notice and Mr. Jaeger stated there was no typically, but rather whatever was governed by the lease. He continued they had 8,000 units and they all required 60-day notice by the residents, so they had ample notice to properly maintain the unit for a new resident.

The rent limits were questioned. Questioned was if that was the rent they intended to charge, or was it the maximum they could charge, and answered it was the maximum. It was questioned what the rent levels were that they actually planned to be at and answered $200-300 below that and subject to market. It was noted if that were the case, they would be renting at less than what they were currently renting for, and answered not necessarily. It was pointed out to rent a 2-bedroom, 1½ bath apartment at $200 less than the limit ($1,018) equaled $818. The current rent was $889. Mr. Jaeger stated the apartments were not fully occupied and they were offering 2 months free rent, which amortized over 12 months, it would be closer to $800 per month. For example, if $800 per month, giving $1,600 free, taking that $1,600 and dividing it by 12, it would be $120 per month discounted, taking $880 discounted by $120, it would $760 per month. Mr. Jaeger stated they would rather see a unit vacant rather than renting to someone not meeting the standards. He stated they adjusted their rent levels based upon the market. It was noted that their concessions were the same ones they faulted current management for using. It was clarified that a problem from current management stated concessions were made to gain tenants. Mr. Jaeger stated their properties were almost always in the 90%+ occupied levels whereas the current level was at 78% and their screening levels were not compromised. Mr. Jaeger also stated by spending $5+ million, it made the property a lot more attractive to rent, and that they had a better on-site presence for management.

It was reiterated they had been doing this for 25 years and questioned what condition the properties were in when they were sold after 15 years, etc. and Mr. Jaeger stated they continued to own nearly all of them, stating they invested for the long term.

It was noted they geared toward the moderate income, however, with the Illinois Development Housing Authority, it was noted as a low income housing tax credit which extended use agreement. Mr. Jaeger stated the document stated low income, but what actually qualified would be addressed by IDHA. He noted at 40% of average median was very low housing, 50% of average was low housing, and 60% was typically moderate income housing.

It was questioned if the documents presented were the ones being used, and Mr. Jaeger stated they were form documents, the actual ones would not be prepared until the signing. One comment made was there would also be questions and that this was an improvement. It was questioned how it went from $3.5 million to $5 million, and noted it was closer to $5 million. It was also commented it was good to upgrade this development but this went against what was strived for.

Mr. Hummel stated this property was not within a TIF and the ability to finance those improvements would not pertain to this property. He stated this would be the same analogy to making significant improvements in a residential community recognizing that a portion of our existing community was moderate income. He continued to have $5 million worth of improvements was a positive for the community.

Further comment made was this property did need improvement but many questions seemed unanswered, such as what would happen if things didn’t work out, would we be stuck with a half renovated, half run-down apartment.

It was brought out that a TIF could be expanded to include this property, as an alternative. It was noted there were many future opportunities, such as the new medical facility, and having patience in further developing this property was needed, rather than further increasing low income housing. It also stated the time was not yet right for this and in talking with the Mayor of Bolingbrook, it was noted Jackson Square Properties was doing renovations, but it was uncertain that this needed to be tied up for 15 or 30 years with low income residents.

Mr. Hummel stated this could not be TIF’d unless everyone were relocated and we were prepared to pay for everyone’s relocation costs. He also noted it was critical timing and the momentum was building for redevelopment in that Village center area.

Motion by Trustee Kaiser and seconded to Approve a Letter of Support for the Jackson Square Properties’ Acquisition and Renovation of the Prairie Station Apartments. Roll call:

AYES: Manton, Kaiser, Nicolosi, Packham NAYS: Craig, Eby

ABSENT: None
Motion carried – Approved the Letter of Support for the Jackson Square Properties’ Acquisition and Renovation of the Prairie Station Apartments

Passed: Agenda as Amended

Passed: Consent Agenda Items

Awarded Contract to Flannigan Western for 2006 Sign Maint Truck with man-lift for $77,793.50

Awarded Contract to Urban Communications for Fixed Wireless & Network Data Link betw FS #2 and Evergreen Water Tower for $18,051.00

Passed ORD O-07-01: Established the No. and Classes of Liquor Licenses in the Village

AYES: Manton, Craig, Kaiser, Nicolosi, Eby, Packham NAYS: None

ABSENT: None
Motion carried – Accepted the Agenda as Amended

Motion by Trustee Manton and seconded to Pass Items 5-A.3, 4, 6, 7-A.1 and 2. Roll call:

AYES: Manton, Craig, Kaiser, Nicolosi, Eby, Packham NAYS: None

ABSENT: None
Motion carried – Passed Items 5-A.3, 4, 6, 7-A.1 and 2

5-A.3 Awarded the Contract for the Purchase of a 2006 Sign Maintenance Truck with Man-Lift to Flannigan Western in an Amount Not to Exceed $77,793.50 and Authorized the Village Manager to Issue a Purchase Order.

5-A.4 Awarded the Contract for the Construction of a Fixed Wireless Point-to-Point System to Provide a Data Network Link Between Fire Station #2 and the Evergreen Water Tower and Annual Maintenance to Urban Communications, Inc. in an Amount Not to Exceed $18,051.00.

5-A.6 Passed Ordinance O-07-01: Establishing the Number and Classes of Liquor Licenses for the Village of Hanover Park.

7-A.1 Waived the Reading and Approved the Minutes of the Regular Board of Trustees’ Meeting of January 4, 2007, as Published.

7-A.2 Waived the Reading and Approved the Minutes of the Post Board Meeting of January 4, 2007, as Published.

Mr. Hummel stated this was a request to approve the final closeout change order for the Fire Station #1, specifically in the amount of $116,817.00. He stated this was approximately 2% of the contract amount and overall the contract was approximately 8% over the original engineer’s estimate; however, we borrowed $7 million, and although expenditures exceeded the estimate by $46,000, we were able to garner additional revenue primarily due to interest on the bond proceeds as they inured over the time period during construction. He noted we garnered $75,000 more than the original estimate there and we had enough money for the change order. In addition, he noted, we would be charging back to the capital expenditure fund, some of the expenditures related to furniture and the phone system at the Fire Station.

It was questioned if everything on the punch list was approved and Mr. Killian stated we were not approving the final payout, just the final change order. He continued there were some outstanding items, but final payout would be later, and we still had a one year warranty period.

It was questioned if the curb repair should have been included with this project instead of coming out of the Streets budget. Mr. Killian stated with the time period, we were being good neighbors by replacing the curb and frontage along Pinetree so it would look completed at one time. He also stated it was in need of repair and would have been replaced in the future.

Motion by Trustee Eby and seconded Approve Change Order #3 for the Construction of Fire Station #1 to George Sollitt and Company in an Amount Not to Exceed $116,817.00 and Authorize the Village Manager to Execute the Change Order. Roll call:

AYES: Manton, Craig, Kaiser, Nicolosi, Eby, Packham NAYS: None

ABSENT: None
Motion carried – Approved Change Order #3 for the Construction of Fire Station #1 to George Sollitt and Company in an Amount Not to Exceed $116,817.00 and Authorized the Village Manager to Execute the Change Order

Acting President Packham fielded questions on the warrant. Motion by Trustee Manton and seconded to Approve Warrant SWS577 in the Amount of $2,271,533.39. Roll call:

AYES: Manton, Craig, Kaiser, Nicolosi, Eby, Packham NAYS: None

ABSENT: None
Motion carried – Approved Warrant SWS577 in the Amount of $2,271,533.39

Acting President Packham fielded questions on the warrant. Motion by Trustee Nicolosi and seconded to Approve Warrant SW578 in the Amount of $1,135,544.79. Roll call:

AYES: Manton, Craig, Kaiser, Nicolosi, Eby, Packham NAYS: None

ABSENT: None
Motion carried – Approved Warrant SW578 in the Amount of $1,135,544.79.

Mr. Hummel had no report.

Clerk Craig had no report.

Mr. Samelson had no report.

Trustee Manton had no report.

Trustee Craig had no report.

Trustee Kaiser had no report.

Trustee Nicolosi had no report.

Trustee Eby thanked Acting President for signing a letter of support for Arlene Mulder for her return to the Metra Board.

Acting President stated he also responded via e-mail on behalf of the entire Board. It was also questioned if he responded on the issue with the drop legislation and Mr. Hummel stated staff was responding as it related to forwarding that information onto the Regional Cogs.

Acting President Packham reminded the Board of a Post Board Workshop following the meeting tonight as well as an Executive Session following the Workshop.

Motion by Trustee Eby and seconded to adjourn the meeting. Voice vote: All AYES - Motion carried – Acting President Packham adjourned the Meeting at 8:26 P.M.