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St. Charles Shocker: Council OKs Lexington Club

But the vote on the contentious issue was divided, and Mayor Donald DeWitte cast the tie-breaking vote on each of the five measures.

 

A deeply divided St. Charles City Council on Monday night reversed course on the Lexington Club development, pushing through five ordinances that clear the path for the developer to proceed on a project that has proven contentious both for its scope and for its reliance on tax-increment financing.

Aldermen voted 5-5 on each of a series of motions, with Mayor Donald DeWitte casting the tie-breaking vote on each. As mayor, DeWitte seldom votes on issues — typically, the mayor and chairmen presiding over City Council committee meetings vote only to break a tie.

DeWitte said after the meeting his record on the Lexington Club project is well-established and that his vote should not have surprised anyone.

Those voting in favor of the five measures were 1st Ward Alderman Jon Monken, 2nd Ward Aldermen Clifford Carrignan and Rita Anne Payleitner, 4th Ward Alderman James E. Martin and 5th Ward Alderman Ed Bessner.

The council’s divided vote reflects not only how contentious the Lexington Club proposal has been, but reaction to it also indicated that the already politically charged issue will continue to be a factor in the 2013 Consolidated Election on April 9.

Monday night’s meeting was packed to a nearly standing-room-only crowd, but not all were there for the Lexington Club votes — a sizable contingent represented the Tri-City Chargers, whose team of 9- and 10-year-olds from St. Charles, Batavia and Geneva on Dec. 7 won the United Youth Football League’s national championship in Tampa, Fla. The City Council passed a resolution honoring the team for its accomplishment.

But the City Council Chambers still were crowded when the team left and aldermen began taking action on the Lexington Club ordinances.

The City Council on Dec. 10 voted 7-2 to reject the TIF for the Lexington Club project, with several members expressing dissatisfaction with a repackaging of the project to provide it with additional TIF funding, considered a linchpin to financing the project, whose cost is estimated between $40 million and $45 million.

Revisions to the Lexington proposal had increased the developer’s request for TIF funding reimbursements from $5.25 million for demolition, environmental remediation and site grading to $6.29 million — a level which aldermen rejected in December.

But in Monday, the developer returned with a revision knocking the TIF reimbursement request to $5.6 million.

The council approved three measures — one creating the Lexington Club TIF district, a second approving a TIF redevelopment plan for the site, and a third approving the TIF funding agreement with the reduced reimbursement proposed by the developer.

The City Council then formalized its May 2012 Planning and Development Committee vote by approving two ordinances related to the adoption of the planned-unit development and development agreement for the project, clearing the last hurdles for Lexington Club.

Twofold Opposition

Opposition to the project has fallen primarily on two fronts — one related to the TIF element, the second related to the land-use plan for the project.

Some residents had opposed the use of a TIF to support the project, fearing that despite St. Charles officials’ assurances to the contrary, that the city could end up shouldering an additional debt, as occurred with the 1st Street Project. City officials, however, have said that the TIF monies generated by the Lexington Club development cannot be reimbursed until after the work is done and the property has begun generating additional property tax revenue, ensuring the development would not saddle the city with additional debt.

Later in the evening, aldermen advanced a proposal to issued $27 million in general obligation bonds to refinance the debt on that project. The bond issue cannot proceed without formal City Council, which could come before the end of the month.

Perhaps the greater area of criticism of the Lexington Club development has come from those living in the area who had opposed the number of new homes planned at the site — about 100 two-story townhomes, as well as 27 single-family detached homes. Neighbors complained the number of homes was too high and should be scaled back or have other uses considered for the site.

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    Related Topics: Lexington Club, PUD, St. Charles City Council, TIF, Tax Increment Financing, final approval, and tax-increment financing

    Bill Miller

    10:16 am on Tuesday, January 8, 2013

    Hats off to Mayor & City Council for moving forward on this project to restore a blighted property to the tax rolls.

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    David Amundson

    11:27 am on Tuesday, January 8, 2013

    In case you are unaware, nothing will be restored to the tax rolls until the TIF is retired, which will not be for many years. In the interim, the only thing that will happen is that several of the local taxing bodies will see additional costs, but no new (or, in the case of D303, not enough new) revenue to offset those attitional costs. The upshot of this is that we will all either see cuts to our services, or increases to our property tax bills to help subsidize this unwanted development. Yes, that's right, our Mayor and City Council just voted last night to (indirectly) raise our property taxes or, at the very least, assure that our local governmental units will have to make further reductions in the way they operate; Ald. Turner acknowledged as much at the meeting last night.

    One last thing to think about: this development could have been done in a manner that would have significantly reduced the amount of subsidy that we will all have to provide through property tax increases, but there was not enough traction in the Council to bother to investigate those options.

    David Amundson

    11:03 am on Tuesday, January 8, 2013

    In the course of my work on this issue, I had the opportunity to speak to a shop keeper on Main Street, who, when asked if he would step forward and speak his mind at a City meeting, politely refused, saying that he felt that the City never bothered to listen to the wishes and desires of the residents and it would thus be a waste of his time to attend the meeting, let alone say anything at the meeting. Having not spent much time working on local political issues, I thought he was simply jaded and dismissed his attitude. After the City Council meeting last night, I now fully understand his position. The Resident Survey (paid for and conducted by the City) established with "95% percent certainty" that the residents do not want developments like the Lexington Club in St. Charles. Two petitions, signed by a total of slightly over 1,100 residents and/or workers in the City (the largest petitions ever presented to Council, I have been told) also signaled that this development was not wanted in St. Charles. No matter. Apparently we need more rooftops, regardless of the political cost. In addition to severely damaging relations with the residents, we can now all look forward to the great joy of having to pay for this unwanted development through increases to our property tax bills for years to come.

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    Ted Schnell

    11:22 am on Tuesday, January 8, 2013

    David, I am curious about why you think this will increase property taxes.

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    David Amundson

    11:33 am on Tuesday, January 8, 2013

    Ted - the analysis is lengthy really cannot be done in 1,000 character posts, at least not in any sane way. I would be more than happy to meet with you, and share with you letters that I sent to the Council, where I crunched the numbers and laid out for them (using data provided by the City itself as the launching point for the analysis) the proof behind what I was saying. If you then wanted to do an article on what this all means to us in St. Charles (higher taxes and/or cuts to services), I would welcome it. You have my e-mail address; please contact me directly and let's set up a time to meet. The voters in STC deserve to know what just happened last night.

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    Ted Schnell

    11:52 am on Tuesday, January 8, 2013

    I'll be curious, because if your analysis in any way rests on the idea that the school district or park district would raise rates to counter the stagnant revenue at the Lexington site, I would suggest it may be flawed. I've seen this type of assertion arise in other communities that considered TIFs (I edited stories from the Dundees, Carpentersville, Elgin and elsewhere for more than a decade when I was night editor for The Courier in Elgin), and there are statutory reasons such a move cannot be done. But perhaps you have another basis for you assertion, and I would be interested in learning more sometime.

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    Karl Brubaker

    2:12 pm on Tuesday, January 8, 2013

    Ted,

    I won't speak for David but I have found that, for the most part, residential properties to not pay for themselves concerning park and school taxes. A single family home with two children taxed at $10,000 per year assumes about $6,500 goes towards D303. Expenditures per child in D303 are about 11K.

    That single family home with high taxes does not come close to covering the two children living under that roof. Town homes are worse. (Apartments are even worse but we realize there are no apartments at Lexington).

    Commercial, industrial and residents without children balance the cost. Lexington does not help this community in the least. It's a sickening show of politics and people should indeed remember who voted for what.

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    Ted Schnell

    2:41 pm on Tuesday, January 8, 2013

    Karl,

    I understand what you are saying. I believe one of the aldermen who voted against Lexington -- I am not certain whether it was Dan Stellato or William Turner -- made a similar point when voting against it.

    The other side of that argument, however -- and this is one of the key points of disagreement in this whole issue, and one that clearly is not black and white -- is that more residents will draw more commercial development. That is an arguable point, regardless of which side of the issue you stand.

    More rooftops=more new business is one philosophy of planning that in many instances is true, although, as some residents have pointed out, there are exceptions. Some of the exceptions -- South Elgin, for instance -- seemed a stretch for me. South Elgin was adding new rooftops in the late 1990s and early 2000s, an it is reasonable to assume that at least some of its commercial growth in recent years is attributable to that, although the Randall Road corridor certainly was a large factor.

    I see both sides of the issue but have no emotional bias in the debate. It is a complex, thorny issue. There are other factors to consider, as well.

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    David Amundson

    9:05 pm on Tuesday, January 8, 2013

    Ted - Very much interested in meeting, and unless I'm missing something, statutory reasons do not impact the fact-finding I was able to do. I firmly believe that the existence of this TIF will result either in incrementally higher property taxes for everybody in town or it will result in governmental bodies being forced to make cuts to their services. I talked to enough folks in enough places (including the CFO of D303) to feel confident of this claim.

    Vanessa Bell-LaSota

    12:07 pm on Tuesday, January 8, 2013

    At the same time that Lexington is forced forward by City leadership, tonight, the 2013 Comprehensive Plan Draft is being presented to the Plan Commission: under Land Use p.32 "Although roads & intersections can be widened & schools expanded,a less costly approach would be to work within the framework of the City's well-established infrastructure, evaluating a proposed developments' impact on City systems & working with developers to mitigate & minimize strains on local systems".

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    Pete Richards

    1:12 pm on Tuesday, January 8, 2013

    The people who were opposed to this particular proposal (but not to the redevelopment of the property) and this particular TIF (which may not cost the City anything, but which will surely cost all the taxpayer in St. Charles something) will NOT forget those Alderman who voted in favor of both.

    Aldermen Monken and Carrignan, we will be working to help your opponents prevail in the upcoming elections. Aldermen Payleitner, Martin, and Bessner, we will be looking for strong candidates to run against you in two years.

    When Aldermen and the Mayor completely disregard not only the hundreds of residents who signed petitions against both the PUD and the TIF but also the results of the City Prioities Survey which shows that the residents of St. Charles are overwhelmingly opposed to new residential units at this time, then it is time for them to leave public service. We need to get new representation that will actually represent the interests of the residents as opposed to the interests of developers.

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    Doug Eden

    2:32 pm on Tuesday, January 8, 2013

    Neither the mayor nor most of the city council listen to the voice of the people. This is supposed to be our government and it is not even close. Do you want to know what is wrong with our federal government today--look around at our local politicians--unfortunately they grow up to be our federal politicians. Good riddance mr mayor --and people wake up--vote the rest of the bums out of office before they have a chance to "grow up".

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    Henry James

    3:17 pm on Tuesday, January 8, 2013

    Doug you are correct they definitely did not listen to the people and they need to go. They could have allowed for some discussion on the plan since it hadn't been talked about since May, but nope the Mayor made sure there was no discussion. I also found it interesting how the mayoral candidate John Rabchuk had a smile on his face during the vote. Guess it was obvious he was happy about the vote

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    Craig Bobowiec

    3:26 pm on Tuesday, January 8, 2013

    Ted towards your rooftop comments. Sure S Elgin was building but so was St. Charles, Harvest Hills, finishing Renaux Manor, Amli Apartments. Yet you still see most commercial currently even in this bad economy going either North or South on Randall. They simply pass right over and by St Charles? Why it cannot be rooftops because we still dominate in that, it's absolutely the poor job our Economic Dept and City has done. All they seek are rooftops and that's the issue. Look at our East side, only recently have they even started a discussion of a new business taxing district yet it's sat for years going backwards.

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    Ted Schnell

    3:44 pm on Tuesday, January 8, 2013

    Economic development has got to be one of the toughest jobs around, especially in an economy like this, and I am not certain one simply can blame the city on that front. There are far more variables than most people realize in what makes a company decide to expand, relocate or choose a new location for business.

    I think it is far easier to point a finger and say, "failed," than it is to understand the complexities of the marketplace -- there is a whole laundry list of things to consider here, not even taking into account the roles of luck and serendipity.

    I've heard one economic development expert compare it to fishing -- you can have all the right skills and even the right lures, but if you are in the wrong spot on the river, you won't catch a thing.

    I am not defending the city on this -- but I've heard this kind of complaint before, elsewhere, and I am not certain about its validity. Conversely, in Elgin, some of the economic development efforts there, which proved fairly successful, were heavily criticized by some taxpayers who resented the city's use of financial incentives.

    It seems to me that the profession is in kind of a "Catch-22" in terms of criticism.

    Craig Bobowiec

    3:34 pm on Tuesday, January 8, 2013

    They turned away a Golf Driving Range on Tyler Rd because the netting and lights would be a eyesore and burden to the neighbors yet they pass this poor housing project without issues? I bet every Alderman who voted for Lexington last night would have voted NO if that project was to be built a couple blocks behind their own homes, yet they handed us residents this sad plan. Then to make it worse not one of them would even look us in the eye as they didn't. What does it tell you when someone can't make eye contact with you? It speaks for itself. We acted respectful, we backed up are arguments and points and showed valid flaws in the traffic studies, turned in petitons and nothing at all mattered to the certain few, they still handed without question Lexington everything they asked and gave residents who they are suppose to represent, nothing in return and ruined a neighborhood in doing so.

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    Ted Schnell

    3:54 pm on Tuesday, January 8, 2013

    Craig, analyzing eye contact is subjective. I do not always make eye contact when I talk with people -- more often than not because I'm taking notes. That said, they made a decision they knew would be unpopular among at least some residents, yet they apparently believed it was the right decision. In that situation, eye contact might be interpreted in a very negative way -- as an "I told you so" or something along those lines. From that perspective, why rub salt in an open wound?

    As I said, reading body language is subjective. Even those who study body language agree on that point.

    Vanessa Bell-LaSota

    4:11 pm on Tuesday, January 8, 2013

    Well,one good judge of character remains, that someone can look you steadily in the eye, even when they are saying something you might disagree with. In the case of the aldermen, it need not be taken as "I told you so", but more as, "I believe in what I am doing as your representative, please believe in me". In the face of residents who worked dilligently over the past several years, to research, fact-check, attend meetings, speak during public comment, speak to the affected taxing bodies, contact their representatives, write to the press, circulate petitions getting over 1,000 signatures, organize an advocacy group, build a facebook discussion group, reach across the city building consensus with groups of residents in other areas. Respectfully, this audience has seen more than one glance at their representatives and are entitled to judge this remarkable moment as they choose, from a base of years of watching these people in action, in city government,on hundreds of votes. It was, in unison, at the least, an avoidance. Continued by the brusque demeanor of the mayor as he exited, avoiding resident Brian Volpe who was attempting to reach the podium in time to speak.Granted, the back of the room was a bit confusing, with people rising to leave, and Brian trying to make his way up. Not even offering Mr Volpe a civil, firm explanation, that moment also spoke volumes to the residents. I commend Council who did remain in place to respect and listen to Brian's remarks.

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    Sue Klinkhamer

    4:41 pm on Tuesday, January 8, 2013

    Residential TIF's are very risky. This one could have been so much better for all the residents of the area. They should have been listened to. As for the rooftop argument that is not as relevant as it was when the economy was good. This development will not solve any economic development problem in St. Charles. Any development on the west side has just a great a chance to help the economy of South Elgin as much as STC. I also feel this way about the Red Gate Bridge. I think it is good that it was built because any way to move traffic across the river is positive but it gives people a great way to bypass STC and get to Randall Rd. There is a much bigger story in relation to this project than meets the eye.

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    Ted Schnell

    5:39 pm on Tuesday, January 8, 2013

    You raise some very good points, Sue. I can see both sides on this issue.

    I also have found myself pondering the longer view, as envisioned by the nation's founding fathers, in setting Senate terms at six years and House terms at two. They wanted a public body that was immediately responsive to the fluidity of the electorate (hence shorter terms for the House, whose members were more immediately accountable to voters) and, if I recall my lessons in civics correctly, a body (the Senate) that looks beyond the fluidity of public opinion and acts in a manner that looks to the good of the nation as a whole over the long term.

    Granted, a lot of people have a lot of legitimate complaints about Washington. But it must be incredibly difficult for politicians at the local level who must balance responsiveness with the long view of what will best benefit the community.

    I suppose that is one of the many things that interests me about community journalism. Certainly there are politics and games of brinksmanship at the local level, but the constituency is much closer and has a greater opportunity to have immediate impact than it does in D.C.

    Craig Bobowiec

    5:34 pm on Tuesday, January 8, 2013

    Totally agree with Ms. Klinkhamer and shows someone someone with Political experience and who once ran this City sees the problems with this as well as us being the ones to keep providing the new shoppers for the surrounding communities instead of luring th business here and attracting shoppers from other communities. Ted your reply to the rooftops and lack of commercial sound like nothing but pointing it all to an array of unlimited excuses. It's not that complex. Batavia, Geneva, S Elgin and even little Campton Hills all have recent commercial development projects in planning, being built or completed. We have what?????? These projects aren't just happening due to luck everywhere else but St. Charles. That is why City's hire Economic Directors, for the purpose of developing their economic base by seeking out and bringing business to the City. Where has ours been? Ms. Klinkhamer when Mayor was one of our leading "promoters" out selling and praising St. Charles. We lost that image and vitality when we lost her as mayor. Since then it's been a horrible stagnation for commercial development.

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    Ted Schnell

    6:03 pm on Tuesday, January 8, 2013

    Craig, all I am saying is that people tend to drop judgments without having walked a mile in the shoes of the folks they're judging -- I've been guilty of the same thing. It's easy to lay blame, but frequently it is far more difficult to understand cause and effect, or to find solutions.

    You blame the present City Council, which is working through the after-effects of the Great Recession, which very, very few communities or elected officials anywhere in the country saw coming. Had circumstances nationally not been so dire, perhaps St. Charles would have flourished far more than it has in recent years.

    People likewise are upset with state lawmakers over the pension mess -- and rightfully so. But I'd venture a modest wager -- say a cup of coffee -- that more than a few of the lawmakers who planted the seeds for that fiasco are no longer in office. So the new blood takes the blame, while the old guard escapes the consequences.

    Again, it's easy to lay blame. While looking back at past successes is not unwarranted, such comparisons with the past need context. Nostalgia fails to consider the historic factors that assured successes and failures of those times, let alone comparing those factors with the present. As a kid, life was relatively simple -- for me. My parents worked their butts off to ensure my siblings and I were well-clothed, fed, etc. Today, my life is complicated -- but I hope my kids grow up with at least some nostalgic memories of their childhoods.

    Craig Bobowiec

    5:54 pm on Tuesday, January 8, 2013

    Ted, to your eye contact answer. I have been involved in this project for almost 6 years now. Never in any previous meeting has the council ever acted or avoided looking up to the audience like last night. Just as when they sat there and took Stillwell's tongue lashing a few weeks ago and allowed him to disrespect them as he did. Had any citizen ever acted in that way towards them, they would have been thrown out as almost happened to Mr. LaVolpe last night and Ms. Bell-La Sota at that same meeting as Stillwell. There are two sets of rules of conduct currently in this City. One the residents must follow which is respect at all times and one the developers, staff and administration are allowed to follow which is anything goes.

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    Ted Schnell

    6:10 pm on Tuesday, January 8, 2013

    Double standards is an issue I understand well, Craig, and what you point out here certainly seems like that. I could hazard a guess or two about why things may have unfolded as they did in regard to that, but I am reluctant to do so simply because I don't have the complete picture -- I'm lacking some context.

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    Kim Malay

    6:35 pm on Tuesday, January 8, 2013

    Sue as often has been the case, you and I are on the same page. This was a major missed opportunity to develop a wonderful plan that both the Developer and the residents could be proud of. I also agree that roof tops on the west side won't bring much sale tax revenue in until you bring the commercial in for them to shop at. This idea that more rooftops will bring the business is unfounded and it definitely does not mean you build something that has a negative impact on a neighborhood. It is a deplorable that the council dismissed the residents concerns. We definitely need change

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    Thomas Keating

    7:13 pm on Tuesday, January 8, 2013

    As this is a done deal, I'd like to express some concerns re: traffic in the area of the development. If 120 more families are going to use 2nd Street as a major route to and from their subdivision, something has to be done about the congestion at 2nd and Main Street. Left turn lanes have to be added to that intersection. It's like something designed for Mayberry RFD right now, not a large and expanding town like St. Charles. There are properties on the NE and SW corners of the intersection that could be acquired for the purpose of adding left turn lanes. Consideration should also be given to adding a light at N 2nd Street and Timbers Trail (across from Boy Scout Island). It's hard enough right now to turn left onto N 2nd Street from Timbers Trail; this subdivision will only make matters worse.

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    Craig Bobowiec

    9:24 pm on Tuesday, January 8, 2013

    Thomas, I agree with your concerns, now think what our neighborhood streets which were never designed 80 years ago to accomdate street parking and two directional traffic. It barely can handle the current traffic and festival traffic. All these 120 families first have to get in and out of the neighborhood before they can even add traffic on 2nd St and Main St. How the council stuck the residents with these issues without a formal resolution that truly dealt with the traffic is beyond me and a failure of their duty to do so. In fact any street improvements which are minimal at best will not be funded by the developer until 1/2 the development is built out. For me that is a little late to then tear up streets furthering the problems while the improvements are installed which always take months. Again what were those who voted to approve this mess thinking????

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    Craig Bobowiec

    9:28 pm on Tuesday, January 8, 2013

    Ms. Klinkhamer hit the nail directly on the head in her final statement "There is a much bigger story in relation to this project than meets the eye." It wasn't about right or wrong good or bad at all. The answers lie much deeper.

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    Steve Swanson

    7:38 pm on Wednesday, January 9, 2013

    Although it will not help the residents near the former Applied Composites site now, the lame duck Mayor showed why it is a good thing that he will be leaving office.

    Can you imagine him actually staying in office if his actions reflect the following mind-set: screw the residents of the area who wanted a more appropriately sized development, disregard the petitioners and people who testified at hearing, completely disregard the City's 2012 Priorities Survey, which showed that residents did not feel that more housing was appropriate, and disregard the opinions of the Aldermen whose Ward includes the site.

    No wonder nobody wants him around anymore.

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