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HomeMy WebLinkAboutPLAN COMMISSION - 06/24/2019 - Preliminary Annexation meetingElk Grove Village Plan Commission Minutes June 24, 2019 Present: J. Glass S. Carlson F. Geinosky K. Weiner J. Morrill P. Rettberg T. Thompson G. Schumm R. DeFrenza Absent: None Staff: M. Jablonski, Assistant Manager J. Polony, Deputy Director of Community Development R. Raphael, Engineering Supervisor N. Radcliffe, Economic Development Specialist Petitioner: Aaron Martell — Logistics Property Company (LPC) Greg Jones — Ancel Glink Brian Ratajczak - SpaceCo Chairman Glass called the meeting to order at 7:03 p.m. Item 1: May 6, 2019 Meeting Minutes Commissioner Schumm moved to approve the meeting minutes of May 6, 2019. Commissioner Weiner seconded the motion. Upon voting (Schumm, Geinosky, Rettberg, Thompson, Weiner, Morrill, Carlson, DeFrenza, Glass AYES), the motion carried. Item 2: Preliminary Meeting — Petition for Annexation, Rezoning, and Resubdivision for 751-815 Roppolo Avenue, 801-906 Richard Lane, and 2110 Landmeier Road - Logistics Property Company Chairman Glass explained that this was a preliminary meeting on a proposed project by Logistics Property Company (LPC), and that a public hearing on this matter has not yet been scheduled. Chairman Glass asked the Petitioner to explain his proposed project to the Plan Commission. Greg Jones, from Ancel Glink, spoke on behalf of Logistics Property Company stating they are proposing to construct a light industrial facility near Roppolo Lane, Richard Lane, and Landmeier Road. The property has significant frontage on Landmeier Road and contains about 10 acres across 21 properties. The location is currently zoned R-5 by Cook County and has not yet been annexed into the Village. The area surrounding the location is predominately zoned industrial. Amerex Corp is located east, and Amitron is to the south across Landmeier. Logistics Property Company has petitioned the Village to annex, rezone to I-1 Restricted Industrial, and resubdivide 21 parcels along Roppolo Drive and Richard Lane for the purposes of constructing an industrial facility. G. Jones stated this proposal fits in with the Village's long term goals stated in its Industrial Commercial Revitalizion Plan. According to the plan, the proposed property is located in sub area 6 and the plan states that upon annexation, the property should be zoned I-1, which is what Logistics Property is proposing. The plan also states the property should be used as industrial and flex space, which Logistics Property is proposing. The plan also showed a large industrial building in a rendering, which is similar to what Logistics Property has proposed. Aaron Martell stated Logistics Property is based in Chicago, and is a nationally known developer. Logistics Property began this project 2 years ago, visiting door to door in the 53 home neighborhood trying to put together a project. A. Martell described numerous projects that Logistics Property has worked on throughout North America. A. Martell stated he believes this is a great deal for both home owners and the developer. A. Martell stated this area is predominantly industrial, so the location makes sense for this proposal. This project will be a huge job creator. There are 53 homes, and they have identified 21 that would make it a marketable project. There are homes that our vacant, not being taken care of, and some that are running a business. A. Martell stated the proposed building will have a lot of glass and will be a 32 foot clear building. This will make it more appealing for e-retailers. The proposed building is 200,000 square feet. The 38 docks will be on the east side facing away from the remaining homes, with truck traffic coming off Landmeier Road on the east side. For stormwater, there would be a combination of underground detention as well as a surface detention pond. A. Martell stated that the development would produce close to $3.5 million in tax revenue for the Village over the next 15 years, as opposed to leaving the land as -is. There would be 70 — 90 construction jobs created, as well as 60 — 80 full time jobs. A. Martell stated the building would be a speculative building, and construction would be planned to begin in spring 2020, with no users in the pipeline as of now. P. Rettberg noted that there are 53 total buildings in the targeted neighborhood, and Logistics Property has an agreement with 21 buildings. He asked if Logistics Property plans to pursue the rest of the buildings, and also asked if the 21 homes are contiguous. A. Martell stated in a perfect world they would like to have them all, yet due to some homeowner's lack of interest, they had to move on with those that agreed to the contracts. The 21 homes are contiguous, as Richard Lane wi1.1 be vacated. P. Rettberg asked if the homes not being pursued in this proposal will be adjacent to the proposed industrial building. A. Martell stated that there would be homes on Roppolo facing the industrial building, but added that LPC is still interested in purchasing them in the future. P. Rettberg asked what type of users the petitioner expects. A. Martell stated it could be consumer product 2 companies, distribution companies, air freight, or a data center. LPC is building the speculative to capture all sorts of users. P. Rettberg asked who would cover the cost of installing utilities for the property. A. Martell stated Logistics Property would be covering those costs. S. Carlson asked if the two houses on the southeast corner or Roppolo and Landmeier wanted to sell. A. Martell stated the owners had interest in selling, but had asked an unreasonable price. S. Carlson asked what will happen to Ropoolo in terms of maintenance, if the annexation went through. M. Jablonski stated the Village would take over the ownership and maintenance of Roppolo, all the way from Landmeier to Lee. She explained that it would be similar to Home Avenue, where the Village owns and maintains the streets, though many of the properties on the street are still in unincorporated Cook County. S. Carlson asked if the streets would have sidewalks, curb and gutter. M. Jablonski stated that the street would be built to Village standards, including all associated amenities, such as curb, gutter, street lights, etc. S. Carlson asked if there would be sidewalks on both sides of the street. M. Jablonski stated that she would have to get back to him on the specifics, as staff was still in the initial stages of reviewing materials. K. Weiner asked if the project will continue if the proposal goes through and the rest of the homeowners in the area decide they are now interested in selling. A. Martell stated they originally thought about moving forward in 3 phases, where the current proposal would be the first phase. He noted that in most cases, LPC is are offering 150% - 200% times the current market value for this land. Based on the motivation by the sellers, LPC was currently only able to come to an agreement on the 21 properties to start moving forward with phase 1. K. Weiner asked what type of hours of operations the developer expects to see running in the proposed facility. A. Martell stated that many buildings that are similar to this run on 3 shifts. F. Geinosky asked if the petitioner will be asking for any variances. A. Martell stated as of now, there are no variance requests, but they are still reviewing staff comments. J. Morill asked what kind of storm water plans the petitioner had in mind. A. Martell stated there will be a combination of underground detention and surface level storage ponds. G. Schumm asked if you were to acquire the other parcels, would those be one building each. A. Martell stated yes there would be one building planned for each phase. Heather Maldonado of 707 Dierking Terrace stated residents located in the unincorporated area hosted meetings to discuss the initial contracts. The 100% to 200% is accurate for the homes located on Richard Lane. Those homes are a V4 of the value located on Roppolo and Dierking. The only offer that the majority of us saw was about 50% of the value for our homes. We are not looking for a million dollars, we are just looking for a fair deal. This has been in the process for 2 years now, but have not heard from the developers since the initial offer. The houses on Roppolo are all resident homes, yet some do run businesses in their homes where their families stay. She stated that residents would be interested in talking if the developers would consider coming back to the table with another offer. C Chairman Glass asked what tools the homeowners used to value their homes. H. Maldanado stated she looked at what she paid for the home and online applications such as Zillow and Red Fin. She stated that using those sites, the original offers were set at 75% value. Michelle Courneya of 703 Dierking Terrace stated there was a building built in front of their home and has been vacant for over a year. It is a beautiful building with a lot of glass but is still vacant. She asked what would make the new building by Logistics Property stand out. A. Martell stated that the building on Dierking Terrace was built very small for the market. A. Martell noted that it looked like the developer chose to build a small building to maximize the amount of trailer parking on the site. He stated that buildings that small do not work for today's market, tenants need more modern buildings. Dawn Jablonski of 720 Roppoio Drive stated her dad built the house 33 years ago and she only received one contract offer two years ago. Patti Dahm of 905 Roppolo Drive stated she has a. beautiful home on the corner of Roppolo Drive and was told by the developer that they do not need her home to move forward. Chairman Glass asked the Petitioner what they used to assess the value of these homes. A. Martell stated that after their initial offer, they got a response from a broker representing a group of homeowners stating that the owners would accept an offer of 3 times the value on Zillow, which is not the something the developer could afford to make the project work. A. Martell stated that they valued based on the industrial fair market price, which is competitive fair market value around O'Hare. Chairman (:lass asked if it is true that the developer had not reached out to the homeowners since the initial offer. A. Martell stated that he did not believe that was the case. He noted that the original negotiations were started through a company called Ridge Development Company, which then changed to Logistics Property Company. A. Martell stated they are open to more conversations with the homeowners to renegotiate. Chairman Glass asked why the 21 homeowners took the offer and the rest of the homes had not. A. Martell stated at a certain point of time they had to focus on a particular area. A. Martell stated that they had previously actually had a property under contract in the northwest section of the unincorporated area, but then one of the property owners indicated his asking price would be $750,000- $1 Million. He noted that they had momentum in the area they are working in and his team had to focus their efforts on the homeowners that were interested in selling. R. DeFrenza stated the value of the homes would drop after the industrial building goes up. A. Martell stated that he did not agree about the loss in value for the property. He noted that the value may not go up for a residential use, but competitors will be willing to pay more once the industrial building goes up for industrial purposes. 4 Chairman Glass stated no one will be happy with the price on either side, hopefully at some point both sides can come to a deal, if not, the homeowners can still live there but things will be changing. P. Rettberg asked if the Petitioner had ever considered a contract determined by an outside arbitrator. A. Martell stated that they had not, but that it seemed like a fine idea. Chairman Glass asked the Petitioner to see what they can acquire on the remaining properties and noted the Plan Commission would expect an update when the matter was scheduled for a public hearing. Chariman Glass stated that the proposed use seemed appropriate for the area, and that he did not believe there was a reason the petition should not move forward to the hearing stage. Item 3: Adjournment Commissioner Rettberg moved to adjourn the meeting, Commissioner Weiner seconded the motion. Upon voting (Carlson, Geinosky, Schumm, Rettberg, Morrill, Glass, Thompson, Weiner, DeFrenza AYES), the motion carried unanimously. The meeting adjourned at 7:58 p.m. Respectfully submitted, Maggie Jablonski Assistant Village Manager C: Chairman and Members of the Plan Commission, Mayor and Board of Trustees, Village Clerk 5