Board of Trustees Minutes

Acting President Robert Packham called the Workshop to Order at 8:34 P.M.

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

ALSO PRESENT: Village Manager Marc Hummel, Assistant Village Manager Mark Masciola, Village Attorney Jim Binninger, Community Development Director Patrick Grill, Human Resources Director Sandra Vincent-Richard, and Police Chief Ron Moser

Mr. Hummel stated there was a provision in the Zoning Ordinance that allowed a pre-application discussion related to development procedures. He noted it was very important to afford the petitioner the lawful right to proceed through the Development Commission and the Board related to the planning. He commented we had already considered a development, specifically the New Urban Communities Development which had been approved as a Preliminary PUD for a significant development of a 9-acre parcel; however, the developer pulled out of the project. Mr. Hummel continued Mr. Grill now had an alternative proposal from a qualified developer, but there were some substantial policy issues that were different from what was presented previously. Mr. Hummel emphasized this was preliminary and nothing was approved as yet.

Mr. Grill continued that it was just over a year ago that the Board approved a preliminary PUD plan for New Urban Communities at the 9-acre parcel at the northwest corner of Church and Lake Streets. He stated that project included 168 condominium units and another 16,000 square foot building at the corner with condos and retail. He stated that preliminary plan had become null and void because the developer did not act on filing a final plat for the PUD within one year. He stated there was discussion with Mr. Walter Rebenson, Vice President of Development for Avalon Bay Communities, Inc. He continued the proposal for that site was similar in that it was residential with a commercial component. He stated they were going through the PUD process because the parcel was zoned B-2, which did not allow residential development except under a PUD, where mixed-use was allowed. He stated this project was intriguing, thus staff invoked the pre-application meeting.

Mr. Rebenson stated he appreciated the opportunity to come before the Board because there was a substantial change from what was previously approved as a condominium retail plan over a year ago. He stated it was different in that it was rental vs. home ownership. He gave some background history for Avalon Bay Communities, noting the company started 20 years ago, with a current portfolio of almost $11 billion in market capitalization.

He stated they traded off the New York Stock Exchange and currently had 156 communities consisting of over 45,000 units, operating in 16 states. He stated they were working in Manhattan, Long Island, Seattle, San Francisco, and Los Angeles and stated Chicago was a relatively new market for the company. He noted they had received several awards over the years including the National Association of Homebuilders, Multi-family Association, and was recently added to the S&P 500 stocks.

Mr. Rebenson gave some statistics with the average age of residents being 37 with an average annual income of $86,256, noting their residents were "renters by choice". Mr. Rebenson continued with a power point presentation showing examples of developments in other communities developed by Avalon Bay.

He noted there would be 259 units, 496 residential parking spaces, and an average unit size was approximately 850 square feet. He continued 60% were 1-bedroom, 40% were 2-bedrooms. He noted the residents were recent graduates, single people, young couples with no children, widows, divorced people, and older couples without children. He stated they included amenities such as conference rooms, an exercise facility, an entertainment room, and a roof top sundeck and picnic area; however, this facility did not include a swimming pool. He stated they envisioned a prairie style architecture with a retail building of approximately 10,000 square feet with 50 parking spaces. He noted the total development was estimated at $42 million.

He continued with some of the differences between Avalon Bay and New Urban, noting New Urban had a much lower unit count, 168, because they were had 70% 2-bedroom units and 30% 1-bedroom. He continued the square footage for New Urban was 393,600 vs. 459,900 for Avalon Bay, the difference being in the indoor parking. He stated their experience in the Chicago area was a 2:1 parking ratio.

Mr. Rebenson stated with the development being rental, they marketed their properties every day, through the internet and through job relocations. He stated their properties were marketed with Avalon in their name, such as Avalon at Hanover Park, thus giving familiarity to repeat clients.

He pointed out their landscaping and commented they would exceed Hanover Park’s landscape ordinance as they placed high values on landscaping. He reviewed the floor plans, noting the 2-bedroom units were placed on the ends of the buildings. He mentioned their vertical parking raised the rent level, offering other amenities such as wireless connections, satellite, etc.

He stated their financing was done through their corporate reserves. He also commented they were the largest apartment development company in the country.

He stated they managed their own properties, with a regional manager located in Chicago, visiting all their properties weekly. He stated there would be an on-site manager and assistant manager, head maintenance and 2-3 assistant maintenance personnel on site, and there would always be one employee that lived on-site.

Mr. Rebenson introduced their architect, Mr. Patrick FitzGerald, President of FitzGerald Associates Architects. Mr. FitzGerald stated his firm was a Chicago-based firm that had done residential work, being in existence since 1919, and he had been at the helm for 22 years. He stated their staff was approximately 50 people, working primarily with residential developers in the Chicagoland area. He stated they worked in high density design as opposed to individual small buildings, specializing in adaptive re-use of existing buildings, converting over 100 loft buildings, working on historical national register buildings, converting 30-story high rises to residential, as well as new construction.

He continued that they had worked with Avalon Bay in a number of their projects, noting the Mayor of Chicago lived in one of the buildings. He stated they prided themselves on being professional and thorough. He also presented slides of several projects they worked on. He stated they worked on many projects with Avalon Bay and this was a unique project, working with parking on all levels, wrapping it with residential.

Mr. Rebenson stated he felt this was a viable project and looked forward to the opportunity to work with the Village. Acting President Packham opened the floor to the trustees for comments. It was questioned if it was primarily a brick structure and answered it was not fully known yet at this time but they would work with the Village. The garage was questioned with security issues, and answered the garage did not have security, but if it became a problem, they would door it and put a phone on the outside. It was stated the foyer for guests was locked with telephone access to the apartments. It was stated that since there was a 3-story parking garage with vehicles and potential fire issues, frame construction did not seem viable. It was answered that the components for the apartments were frame construction, fully sprinklered, with a 10-15 foot separation between the residential wall and the garage, meeting all current fire regulations. It was pointed out a nursing facility was directly west of this development, and if it were possible to direct this complex to a 50+ crowd. Mr. Rebenson stated they did not do age-restricted communities, noting that 15-20% usually were over the age of 55.

It was questioned what other structures were done in the City of Chicago and noted that they were 1A construction. It was commented that rental properties looked good the first 10 years but with the 1A construction, it was noted it would be quality construction. Concern over rental property was expressed; however, it was explained Avalon Bay was 100% high end rental.

It was questioned if it would become condominium and Mr. Rebenson stated their average ownership of rental properties was over 18 years. The commercial portion was also questioned and answered that Avalon Bay would develop, own and lease the commercial portion. The 1A construction was again questioned, and answered frame construction could be considered 1A with sprinklers and the 3-4 hour fire rating. It was pointed out there was some confusion, different codes referred to different types of fire resistance construction and/or ratings; for example, our 1A in the City of Chicago would be Type 4. It was clarified, when it was discussed as 1A construction, it meant full masonry or steel deck poured-in-place concrete floor, cinder block or pre-cast concrete walls, pre-cast or poured-in-place ceilings, sealed units whereby it could be completely gutted, and the structure still restored. It was further pointed out type 1A construction did not collapse, as a general rule, in a standard residential fire, and there was not a safety issue for either firefighter or resident. It was then pointed out there were sprinklers, adding safety as well.

It was then noted that Avalon Bay complied with codes usually above and beyond what was required. They stated they built a 4-story stick built, with a separation between them and a pre-cast concrete garage.

Acting President Packham thanked members of the Development Commission for their attendance and then asked if they had any questions or concerns. It was noted there was 80-85% of the ground covered with either concrete or roof, and questioned where the storm water would go. It was noted the storm water would be to the south in a water retention area, but stated their calcs had not yet been completed. Another question asked was what construction was used in the Bloomingdale and Naperville areas and answered both were stick built with frame and sprinklers.

It was noted with the diagrams, it was difficult to see the layout for the Fire Department to get around. It was again questioned how much the rent would be if it were to be 1A construction and answered possibly 35% higher. The occupancy rate was questioned and answered somewhere between 95-96% in the Chicago market, and in times of recession, as low as 88%. It was again noted the plans were preliminary, but questioned was if the ingress/egress had the single location on Church Street and answered yes.

The commercial businesses were questioned and answered they did want to control the quality of the tenants. It was stated if approved, what was the time frame and answered after all approvals were obtains, approximately 4-5 months for construction drawings and bids, with construction possibly beginning this Fall, taking approximately 14 months from start until the last unit was completed. Green technology was questioned and answered they used high quality windows and appliances.

Mr. Hummel stated his intent was an introduction and background information, with no decisions being made. He thanked everyone, noting it was a very informative and impressive presentation.

Sherry L. Craig
Village Clerk

Minutes approved by the President and Board of Trustees on this 15^th day of

March, 2007.

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