August 20, 2019

1. Call to Order

Mayor Robert Barnett called the regular meeting of the Village Council of the Village of Downers Grove to order at 7:00 p.m. in the Council Chambers of the Downers Grove Village Hall.

Pledge of Allegiance to the Flag

Mayor Barnett led those present in the Pledge of Allegiance to the Flag.

2. Roll Call

Council Attendance (Present):  Commissioner Walus, Commissioner Earl, Commissioner Sadowski-Fugitt, Commissioner Kulovany, Commissioner Gray, Commissioner Hosé; Mayor Barnett

Absent:  None

Non-Voting:  Village Manager David Fieldman, Village Attorney Enza Petrarca, Village Clerk April Holden

Following the Roll Call, Mayor Barnett asked for a show of hands regarding which subject residents are here to discuss and learn about, noting that two topics for discussion are recreational marijuana, and the future of downtown funding. He said the Village has a tight timeline to consider recreational marijuana as dictated by the State. After a raising of hands, he said that they would discuss recreational marijuana and hope to be able to cover both topics.

The Council meeting is broadcast over the local FM radio station, WDGC. In addition, a tape recording and videotape of the meeting are being made using Village-owned equipment. The videotape of the meeting will be used for later rebroadcast of the Council meeting over the Village cable television Channel 6. 

The Council will follow the rules of conduct for this meeting as provided in Sec. 2.5 of the Downers Grove Municipal Code. These offer the public the opportunity to comment at several points in the meeting. First, immediately following approval of the minutes of past meetings, an opportunity will be given for public comments and questions of a general nature. If a public hearing is scheduled for this meeting, an opportunity is given for public comments and questions related to the subject of the hearing. Finally, an opportunity is given for public comments and questions on items appearing on the Consent Agenda, the Active Agenda and the First Reading. 

The Mayor stated that at the appropriate time the presiding officers will ask if there are any comments from the public. Individuals wishing to speak should raise their hand to be recognized and, after acknowledgment from the presiding officer, approach the microphone and state their name. Remarks should be limited to five minutes, and individuals are asked to refrain from making repetitive statements.

Mayor Barnett said there are agendas located on either side of the Council Chambers, and he invited the audience to pick up an agenda and follow the progress of the Council meeting.

3. Minutes of Council Meetings

MIN 2019-8288 - A. Minutes:  Council Minutes - August 6, 2019

Motion:  Commissioner Hosé moved to approve the minutes as presented.  Commissioner Earl seconded the motion.

Mayor Barnett declared the motion carried by voice vote. 

4. Proclamation

American Association of University Women (AAUW), Downers Grove Area Branch 70^th Anniversary

Mayor Barnett proclaimed the week of August 19-23, 2019, as the AAUW week in the Downers Grove Area. He presented the proclamation to members of the AAUW and congratulated them on the history of their group advancing the rights of women and girls, stating it was a fantastic organization in Downers Grove.

5. Public Comments

This is the opportunity for public comments.

Jeff Walrath, 1629 71st Street, commented that landscaping companies are mowing and placing yard waste on their streets. He discussed the flooding issues in their area, and said that landscapers have no regard as to where the waste is placed. He said he brought this up with Public Works but doesn't think it has been taken seriously.

6. Consent Agenda

BIL 2019-8289 - A. Bills Payable:  No. 6474, August 20, 2019

COR 2019-8290 - B. Claims Ordinance:  No. 6325, Payroll, August 2, 2019

MOT 2019-8282 - C. Motion:  Award $1,152,622.19 to Austin-Tyler Construction, Inc., Elwood, IL, for Elm & Earlston Drainage Improvements, 2014 Stormwater Project Analysis #3

Summary:  This awards a contract for the Elm & Earlston drainage improvements, 2014 Stormwater Project Analysis Project #3, to Austin-Tyler Construction, Inc. of Elwood, IL, in the amount of $1,152,622.19.

Motion:  Commissioner Hosé moved to adopt the Consent Agenda as presented.  Commissioner Earl seconded the motion.   

Mayor Barnett declared the motion carried by voice vote.

7. Active Agenda

ORD 2019-8277 - A. Ordinance:  Amend the Brew Facility Liquor License Classification

Summary:  This makes certain amendments to the Class BF liquor license classification.

AN ORDINANCE AMENDING THE BREW FACILITY LIQUOR LICENSE CLASSIFICATION                    

ORDINANCE NO. 5770

Motion:  Commissioner Hosé moved to adopt "An Ordinance Amending the Brew Facility Liquor License Classification," as presented.   Commissioner Earl seconded the motion.

Votes:  Yea: Commissioners Hosé, Earl, Gray, Kulovany, Sadowski-Fugitt, Walus; Mayor Barnett  

Nay: None

Mayor Barnett declared the motion carried.

ORD 2019-8277 - B. Ordinance:  Amend School Zone Provisions

Summary:  This amends certain traffic restrictions in school zones. 

AN ORDINANCE AMENDING SCHOOL ZONE PROVISIONS

ORDINANCE NO. 5771

Motion:  Commissioner White moved to adopt "An Ordinance Amending School Zone Provisions," as presented.   Commissioner Earl seconded the motion.

Votes:  Yea: Commissioners Hosé, Earl, Gray, Kulovany, Sadowski-Fugitt, Walus; Mayor Barnett  

Nay: None

Mayor Barnett declared the motion carried.

8. First Reading

INF 2019-8292 - A. Information:  Consider Regulations and Taxes on Recreational Cannabis Businesses

Village Manager Dave Fieldman said this is a discussion of recreational marijuana regulations, including State law and how that affects municipal authority and decision-making capabilities. The discussion will then move onto the options to the Village Council's direction.

Mr. Fieldman said that the Cannabis Regulation and Tax Act legalizes the possession and use of cannabis in the State effective January 1, 2020 for persons 21 years of age or older, and limiting the amount of cannabis. He said that the State licenses cannabis related businesses. They anticipate 500 licenses being made available by 2022 with 47 licenses available for the Chicago-Naperville-Elgin region, including Downers Grove. He reiterated that it is the State that licenses these businesses.

Mr. Fieldman explained that the Act expunges police records for qualifying cannabis related offenses, establishes State taxes on the sale of cannabis, and distributes 8% of the State Tax Revenue to municipalities. He explained that revenue obtained must be used for costs of expungement, law enforcement and training, must be distributed to all municipalities on a per capita basis. There is presently no projection as to the amount of revenue anticipated.

The Manager said that there are several business classifications, and rules for each of these types of classifications could vary. He noted that according to the Act, municipalities could establish ordinances regulating cannabis businesses, and establish a municipal tax up to 3%. He stressed that use of cannabis remains legal throughout the State and local municipalities may not restrict the private consumption of cannabis. The Village can create its own zoning regulations as they generally do for other businesses within the Village boundaries. The Act does allow the Village to regulate on-site consumption. Local sales taxes will be collected, administered and distributed by the Sate. He said that allowing cannabis businesses and taxing cannabis sales does not guarantee generation of Village revenues.

Options for the Village Council are A) prohibit cannabis businesses, or B) considering the establishment of zoning regulations and tax rates. Option A would be based on direction from the Council to move forward and prohibit all cannabis-based businesses in the Village. If Option A is decided upon, staff would work toward preparing ordinances that would go through the normal processes with a Zoning Ordinance amendment prohibiting cannabis businesses for approval in November or December 2019.

Option B is an extended process that must be directed by Council. It would involve multiple meetings with detailed discussions, somewhat similar to the process followed for the rezoning of the downtown area. Should Council choose Option B, discussions regarding zoning regulations could take place in September followed by Plan Commission public hearing consideration of Zoning Ordinance amendments in October, and Village Council considerations of the Zoning Ordinance amendments in November/December. Tax rate discussion and Ordinance changes would take place in Council discussions from September through December at the local level. It is an extended process with multiple meetings and many options under discussion. However, even if Option B is placed under consideration, it does not preclude the Village Council from prohibiting cannabis-based businesses at the end of the discussion.

The Manager said that those are the two options staff identified as topics for discussion, and he said that there is a lot more to the Act.

Commissioner Earl clarified that the Village already does allow medical marijuana dispensaries. She noted that no one has decided to locate in Downers Grove as yet. This has been an evolving process.

Commissioner Sadowski-Fugitt said it would be to the Village's benefit to collect all the research they can in order to consider this, regardless of the decision because it will be legal in people's homes. She would like to hear from the police and law enforcement about any impact that may occur, and she would like to hear from substance abuse professionals, and social justice organizations. She also hopes to hear from those who understand the functions of the brain, particularly the young brain, and in particular how this could affect that development. In addition, she would like to be able to participate in larger conversations before making any final decision.

Commissioner Hosé said he would consider Option B but thinks they need more information to make better-informed decisions.

Commissioner Walus also thinks Option B should be considered, but there are a lot of unanswered questions. Questions include how many businesses would be allowed, and where. How easy will it be to obtain money from the State. She said some have already heard residential feedback from neighbors. Many people do not want them near their neighborhoods, not anywhere near schools. The parameters will need to be crafted carefully and with a good amount of public engagement. She said areas that might work would be the I-88 corridor, near Butterfield, etc. This will be an emotionally charged issue and the more resident feedback they have the better it is for the community.

Commissioner Gray said they are trying to wrap their heads around an issue they might not be familiar with. This can go from criminalization to medicinal to recreational areas. Crain's projects numbers in the millions of dollars and users. The numbers are being projected, but they are more interested in what the community thinks about this. He prefers Option B and wants to hear what people think about this.

Commissioner Kulovany would like to see this more fact based. There's a lot of hyperbole about this. He feels teenagers will pressure others to have them make purchases for them. They can say it is legal, but they need to quantify this. He would like to see a dialogue and is intrigued by what other municipalities have done to date. He thinks Naperville has said no to having businesses in their community. He would also like an understanding of the revenue. He noted that people will travel to other communities that allow it if this Village doesn't.

Mayor Barnett said he has heard interest in Option B and he agrees. He is glad to hear that the Council members have questions.

1. Diane, a resident of Downers Grove, comes from a marketing background and knows people whose children have suffered and are addicted. She said they should consider how this affects the Police Department. She lives in a building that has a marijuana smell.  When someone's decision affects her negatively it is not fair. They should consider consequences on the individuals who can't do anything about it. She said she has seen cooks in the downtown area smoking marijuana in the daytime. It is already in the Village. She added that in Denver multiple areas of the City smell of marijuana constantly. She suggested that they go to Denver. She asked how this would be addressed between parents and children. She referenced survey monkey as a great tool to get community feedback.

2. Michelle Robella referenced a study from Colorado and the conclusions get worse and worse as time goes on. Since recreational marijuana was legalized there were increases in traffic deaths, emergency department visits, increase in use for ages 12 and over. She urged the Council to prohibit cannabis businesses, and asked what good can come out of it.

3. Jeff Horvath thanked the Council for the opportunity talk. The issue isn't whether it should be legal. The issue is whether Downers Grove wants to allow for retail sale or cultivation. He said this is a big business and he will have to wrestle with this. Marijuana is an addicting drug. He asked whether Downers Grove wants to allow the sale of addicting drugs. Will providing retail sales increase access? He said the usage will increase and be of a broader base. He asked whether this is a business the Village wants to have. He does not support cannabis business establishments. The statute allows for smoking within establishments. He asked how law enforcement would measure consumption. The issue for him is what does Downers Grove wants to be known as, and he asked whether any amount of money is worth it.

Mr. Fieldman said that staff will expect to have further discussions about this in September.

9. Mayor and Council Member Reports

Commissioner Earl said Friends of the Edwards House is presenting its landmarked house tour September 14 from 11:00 a.m. to 3:00 p.m. Tickets can be purchased for $15 in advance and $20 at the door. This event always sells out. There will be four of the landmarked homes in this tour.

Commissioner Sadowski-Fugitt said the Education Foundation of District 58 will sponsor Oktoberfest on September 13 and 14. More information can be obtained at 58 foundation.org/Oktoberfest.

Commissioner Walus reminded everyone that the rescheduled BBQ Bolt will be September 7 starting at 8:00 a.m. There will be a post-race picnic in the park. Additional information for signing-up can be obtained at DGparks.org/BBQbolt.

Mayor Barnett said he has no report. He indicated that the Council will take a 5-minute break after which discussion on the future of the downtown area will take place.  The Mayor called for a recess at 7:50 p.m.

10. Manager's Report

INF 2019-8271 - A. Information 2019-2021 Long Range Plan

Mayor Barnett reconvened the Council meeting in the Committee Room at 7:57 p.m.

Mr. Fieldman introduced the discussions, stating that the long range planning process is made up of four components: 1) goals; 2) issues; 3) strategies and solutions; and 4) 2-year plan.  He stated that the process takes place over six meetings, which began last week. He noted the good discussion on recreational marijuana use earlier in the meeting, and this discussion will cover the future of the downtown area. Future meetings will include facilities, stormwater capital planning, priority action items and closing with strategic goals.

Deputy Village Manager Mike Baker said the purpose of his presentation is to provide an update to the Village Council and those in attendance on the future of downtown Downers Grove. He indicated that this would be similar to the presentation at the Downtown Management board meeting earlier this month. Three broad areas to be considered are the issues, the process and the plan. He explained that the tools and mechanisms that were put in place from the 1990s are ending. They include the TIF and SSA and operating agreement with the Downtown Management Corporation, which is an independent nonprofit organization. All three of those items are set to expire in December 2020. That means that 2021 is the final year from which taxes will be paid from those existing arrangements. It is also the year that the Village makes its final bond payment for bonds that were issued. That leaves insufficient revenues to support ongoing expenses without some type of action being taken to establish new sources of dedicated revenue.

Mr. Baker reviewed the process going back to May 2017 when the Village began a dialogue with numerous stakeholders related to future downtown funding sources. A generalized plan was presented to the Downtown Management Corporation and will be ready for Village Council review and consideration in September 2019. He said it was important to note that between September 2018 and April of 2019 the Downtown Management corporation and its Board went through a substantial transition regarding board make up including residents, as well as through a revision of its bylaws. Now they are presenting a more detailed level plan to the Council and continuing communication with Downtown Management as well as a broader audience.  September and October will continue the outreach efforts with homeowners' associations as well as the business and property owner community to assure an understanding and opportunity for input regarding final decisions. Mr. Baker also noted that information obtained through the recent parking study will be important in relation to the process. He mentioned that the Downtown Management Corporation went through the process of selecting a qualified landscape architect to provide a plan for the downtown area that will also be helpful as they move forward. All the information obtained through the various tools will be considered with potential revisions to the operative agreement with the Downtown Management Corporation in the coming months.

Mr. Baker said that by the third quarter of 2020, there will be a detailed plan in place for addressing the future downtown needs before the December 2020 deadline date.

As for the Plan, it includes three key financing components. 1) Paying for existing services within the downtown with existing Village funding sources currently amounting to about $600,000 per year that comes from either the general fund or the capital projects fund.  2) Dedication of parking fund revenue coming from primarily commuters and dedicate that source to parking deck maintenance. That facility is about 15 years old and has incurred increasing costs related to its maintenance and upkeep. 3) Creating a new special service area whereby the Downtown Management Corporation and the Village will work together collaboratively to determine the services to be provided and the amount to be collected at a rate of no more than .75% assessed value of property.  The current rate is 1.5%.  The .75% rate is anticipated to generate about $600,000 per year. A scenario for the use of that amount is broadly defined to include parking system improvements at $200,000, landscaping and clean up at $100,000, and funding for the Downtown Management Corporation at $300,000.

Mr. Baker mentioned that at some meetings with Downtown Management representatives, as well as homeowners' associations, feedback was provided regarding a need for a better understanding of how dollars translate to value and services. He said he also heard themes and comments about lowering the rate to .5% or lower, and also the possibilities of expanding the boundaries of the area. They will continue to gather input and feedback.

Mr. Fieldman said that staff has said they would formulate a discussion question for the Council as part of this process after staff's presentation. The question is whether the Council has any change in policy direction of this plan at this point recognizing that they are in the middle of the process and are gathering feedback. In addition, is the Council agreeable with the engagement process that staff is using. That is the most important part to staff.

Mayor Barnett commented that some of those present have seen this presentation before. He asked for comments from the Council.

Commissioner Earl said she was glad to see the rate going down. She thinks that's been the biggest burden to folks who are in the SSA is the misunderstanding perhaps when they bought their property and how that would affect their tax bill. For that reason she's glad to see it coming down.

Commissioner Kulovany commented he was intrigued by what services people living in the downtown area get versus El Sierra or other residential areas. He asked what services they might get that other residents are not charged for.

Mr. Baker said the services that mainly appear in the downtown area are general fund expenses for things like snow plowing of sidewalks within the downtown area, landscaping within the downtown, public property maintenance, higher level snow removal services.

Mr. Fieldman added services provided by Downtown Management including attracting and retention of businesses, marketing and special events. Commissioner Kulovany asked if those are the items that translate to higher property values, and Mr. Fieldman responded that was correct.

Mayor Barnett added that one of the things that are more attractive in the downtown area has to do with the public areas and other improvements.

Commissioner Gray asked what the parking system improvements include, and Mr. Baker replied that it relates to a parking study which is being completed now and will become clearer in coming weeks.

Commissioner Hosé asked where they stand on engagement efforts. Mr. Baker said at this point staff has met with homeowners' associations and property owners as well as business owners. He was joined by Erin Venezia, Executive Director of Downtown Management Corporation (DMC) and Phil Stromberg, President of DMC last night. Mr. Fieldman noted that the Downtown Management Board has also been briefed with this particular presentation.   Commissioner Hosé said he is in full support of the current structure. The rest of the Plan reflects a good and equitable division between the value that downtown residents derive from these services, and the value that the entire Village derives from the downtown businesses and services provided. The downtown is the heart of our Village.

Commissioner Sadowski-Fugitt asked what the impact would be on services if a lower rate were established. Mr. Baker replied that part of the exercise with Downtown Management is to fine-tune just what the impact would be. He said Downtown Management currently receives $240,000.  What is being proposed represents enhancements to funding an investment in the downtown that does not currently exist. Mr. Fieldman added that Mr. Baker's done a great job with the visual he has shown what goes to the TIF and debt service and will go away, and what is really servicing the downtown right now.

Commissioner Kulovany questioned the rationale in expanding the boundary areas. Mr. Baker responded that what he has heard is that there is an equity/fairness argument in the sense that the properties just outside of the boundaries but still in close proximity to the downtown are benefitting but not necessarily paying the costs of those services.

Commissioner Walus asked whether the role of the Downtown Management Corporation is changing or will stay the same. Mr. Baker replied that a review of the operating agreement will look more closely at the function of Downtown Management and make sure that it serves the needs and interests of the downtown community going forward.

Mayor Barnett said that they still have to do some work on defining the value of those three items. The question is what does the tax rate look like with a 9% rate. He is interested in what the Village component of the tax bill would be if the reduction were to go through. It's important to realize that the majority of the tax bill is not going to the Village. Regarding the engagement process, he asked if they have any sense whether the values are going to be sufficiently defined and is there any further definition as to a timetable on that. Mr. Baker said they intend to provide that information by November.

Commissioner Kulovany questioned how much more is necessary to maintain the parking deck than what they receive in revenue. He is curious as to the useful life of the deck. Mr. Fieldman said the useful life is 50 years if well maintained.

The floor was opened to public comment.

Maureen Grove said she was part of the original Total Community Development many years ago. She said that the SSA and the TIF have a limited life, so the costs of the infrastructure should fall off. The purpose of an SSA is for infrastructure, and she said the general operating funds should pay for the maintenance of the parking deck. She doesn't understand how they put $600,000 in both maintenance and labor costs.   Mayor Barnett replied that the SSAs exist in other part of the Village in perpetuity. An example is Prince Pond. He suspects the parking report will have recommendations about new investments that need to be added or maintained differently.

Ms. Grove said that the value of the downtown is the train station. Taxes and appraisals are based on transit. Retail owners should be taxed at a higher rate. The fact that residents are being taxed the same as retail owners makes no sense to her. All the businesses use the parking garage. She thinks it's unfair to bear the burden to improve the parking garage. Mayor Barnett said that there has been no new bond proposed. Ms. Grove asked if the parking garage was built to be able to add floors and be higher in size.

Commissioner Hosé said the some of the discussion about property taxes and commercial businesses versus residents needs to be clarified. They cannot tax retail property different than residences because it is a State law and the Assessor values the building.

Dave Nicholson said he has lived in the village for ten of the 20 years of the TIF and SSA and the need 20 years ago is different today than it was ten years ago. His concern is that the plan assumes that the Downtown Management Corporation is a necessary component of a brand new SSA. He said what they do best is events and those types of things that could be absorbed elsewhere. There are other entities in the Village that do marketing. He thinks there is a piece of revenue that has been earmarked for landscaping. He asked if the DMC would be held to the landscaping. It seems like a lot of work has to be done on what the DMC would do if it were to continue. The needs of the Village are different. If they want the DMC to do things beyond events, they must be very specifically stated in the agreement.

Commissioner Walus said that is why she asked that question on the role of the DMC. Mayor Barnett replied that they cannot finalize that until the value is defined.

Tracy Niedhardt asked whether the original target was .5%. Mr. Baker said that .75% is not the final point being set on. The September 2018 report suggested consideration a .5%.  Mr. Fieldman said that this is the proposed plan, not the final but a proposed plan.

A resident said they felt it was very unjust that every person is paying 19% of their tax bill to the SSA.  Every five years they are paying six years of property taxes. They have to justify what is being done. He asked why everyone in the Village isn't sharing in that cost.

Mayor Barnett said the question is to sort our how the proposed $600,000 would be used and what it would pay for. 

The resident said the only two things higher on the tax bill are the schools.

Jeff Horvath asked whether renters contribute to these costs.  The Mayor replied that the property owner contributes.

A resident asked about the Village paying the DMC for some time, and asked if there are any performance measures. He said he still can't do much shopping in the Village when he gets off the trains after 6:00 p.m. He thinks the Downtown Management Corporation is made up of business owners and they should take care of their costs. The Village should not be philanthropic. He urged the Village to look at the agreement and put performance criteria in.

Mr. Horvath asked why wasn't the Marquee on Main Street required to build parking for their structure. If those properties are evaluated higher than others, they should be paying more taxes into the Village.

Liz Chalberg said she was part of the TCD 25 years ago. She said she hopes information will be provided by other communities and how they manage their downtown areas, with denser downtowns, etc. There are reasons people want to live downtown. The primary reason for having a DMC is to keep the downtown vibrant. She recalls what it was like 25 years or more ago with vacant stores, paper on windows, and limited businesses.  At that time the property was valued at $5-$7 per square foot. Now the value is between $13 and $26 per square foot. So there is a desire to be in the downtown, not only from a residential standpoint because those property values are much higher than on the periphery of the downtown. There is a desire to have your business located in the downtown area so the people who visit the restaurants an also have an opportunity to view your business. That's what DMC is supposed to do. They have filled space, scheduled events, have sidewalk sales, and bring shoppers and their money into the downtown. That represents taxes back in our coffers to help decrease our regular property taxes. Ms. Chalberg said she thinks there's a great advantage to have someone actually managing the downtown business aspects, and that includes business owners. They are the Board of DMC. So now it is a much more vibrant downtown than it was ever before. She feels it is a great benefit to the folks that live in the downtown area. They can walk out their door, walk downstairs, and go to a restaurant. She lives in the downtown area and she's hoping that there's a way for the DMC to provide some statistics to show what they have done over the last 25 years.

Sue Steeley asked how many people living in the downtown area use the parking deck. She said it seems to be a greater benefit to those not in the downtown area.

Mayor Barnett said the coming parking study give us that kind of insight.

A resident said that apartment neighbors pay a fee for a spot in the garage. In the Comprehensive Plan, the section on the Downtown Business District refers to it as the heart of the Village. There is confusion regarding the SSA expiring. How can they just roll in another