VILLAGE OF WORTH

MINUTES OF THE JOINT REVIEW BOARD

HELD January 10, 2006

CALL TO ORDER ROLL CALL Motion to nominate Keri Fitzgerald Motion to nominate Ed Guzdziol Ehlers and Associates Report Attorney Mat Delort’s Report Motion to Approve Resolution ADJOURNMENT

Ed Guzdziol, Village of Worth, called the meeting to order at 10:00 a.m. Roll call indicated that the following taxing bodies were present: School District #127, High School District #218, Worth Library, Worth Park District, Worth Township, Village of Worth, and Public Member. Also in attendance at the meeting were Mathias Delort and Bonnie Price. Ed Guzdziol, Village of Worth, stated that we are anticipating Bob Stukovich of Moraine Valley and John Baldwin of Cook County to appear. Ed Guzdziol stated that we have an agenda here and he wants to ask the board to pick a public member. Ed Guzdziol stated that he brought Keri Fitzgerald as the public member, and that he would need a nomination. Ed Guzdziol asked if he was allowed to nominate? Mathias Delort stated yes. Ed Guzdziol made a motion to nominate Kari Fitzgerald as the Public Member to the Joint Review Board seconded by Worth Township. A roll call vote followed. (Ayes) School District #127, High School District #218, Worth Library, Worth Park District, Worth Township and Village of Worth. (Nayes) None. (Absent) Moraine Valley and Cook County. Motion carried. Ayes (6), Nayes (0), Absent (2) Ed Guzdziol stated the next agenda item is the selection of a chairperson for the joint review board. Ed Guzdziol stated that the Village of Worth hired Ehlers and Associates and they will make a presentation today. Ed Guzdziol stated the Village of Worth had an economic development study of the community and that is what put the wheels in motion. Ed Guzdziol stated in order to encourage development, the Village of Worth needs incentives because they can’t compete with Chicago Ridge, Oak Lawn or Evergreen Park attracting developers. The Village of Worth saw people come out and look at sites and walk away going someplace else. The Village is trying to build a strong economic base for all of us, Ed Guzdziol stated. Donna Henningsen, School District #127, stated that every year a land report is required to be filed with the State of Illinois. Donna Henningsen stated typically you’d nominate someone in the area who is most involved in the process and who could get reports to the community. School District #127 motioned to nominate Ed Guzdziol as a chairperson to the Joint Review Board seconded by Worth Park District. A roll call vote followed. (Ayes) School District #127, High School District #218, Worth Library, Worth Park District, Worth Township, Village of Worth, and Public Member. (Nayes) None. (Absent) Moraine Valley and Cook County. Motion carried. Ayes (7), Nayes (0), Absent (2) Beth Ruyle from Ehlers and Associates stated that Ehlers and Assoc. has been around for fifty years. They financially advise different branches of government and provide economic development assistance to municipalities and townships. Ehlers and Assoc. was obtained by the Village of Worth to undertake a TIF eligibility study to determine wheather or not the area is eligible under the TIF law and if eligible, to go forward with developing a TIF District in Worth. Beth Ruyle stated that the particular area that they reviewed was a classic TIF area, although it was not as old as some of the areas that they’ve seen. It has begun to deteriorate. Beth Ruyle stated that she found that there are a lot of structures that had deteriorated. Beth Ruyle stated that the vacant plumbing company is a typical building in the area. Beth Ruyle stated that she saw the layout and the land use didn’t fit together. That was done prior to the comprehensive plan of the community. Beth Ruyle stated that she saw structures that were old fashioned and covered too much land. Beth Ruyle stated that she had to undertake a housing impact study. If you have more than 9 residential units in the TIF you are required to develop a housing impact statement. That includes a housing relocation plan. Beth Ruyle stated that when she undertook the redevelopment plan, she found the goals and objectives that are listed by the state are pretty typical for this TIF plan. One of the major purposes of a TIF is coming up with a sound long-term tax base for the community and all of its taxing districts. In this particular case we also want to see an increase in the Villages share of sales tax. Part of the plan is to examine those things that are necessary to redevelop the area. We are able to assemble property, demolish existing structures, and enter into redevelopment agreements. Beth Ruyle stated that Ehlers and Associates will do a budget for this plan for 23 years. In Worth’s case we don’t have a developer that is affiliated with that property. We have to think in terms of what might be possible in 23 years. She also pointed out that we will have funds from the bond sale that could help the school districts. If we create additional new housing and there are students present in that housing, there are funds included in the budget to pay the school districts the appropriate amount according to the law. Beth Ruyle told Carol Hall that they’re a separate library district. We do have funds available for her should any new library patrons be created as a result of the TIF. Beth Ruyle stated that we have findings related to each of the taxing entities that show they are not going to be highly impacted by this TIF plan. Attorney Mathias Delort stated that the way the TIF system works is that the new money that is generated by the increased property taxes is not distributed to the taxing districts immediately. Because of this feature, TIF’s are sometimes controversial. Especially if they’re much larger than this one. But legislature determines that because it would potentially effect schools, parks, and libraries, you get to come to the joint review board meetings or have a seat at the table at the planning process, and that’s what this board is about. If you as a Township think for instance this land could develop without any special efforts, or not sure that it is obsolete, then this is your opportunity to say that you don’t think it is a good idea. In the end, the joint review board can’t stop the TIF. It is the Village’s decision whether to go forward with the TIF. The joint review board can slow it down or force the Village to take a second look at things. That’s what this board is really about today. Mathias Delort stated that because we are in a very densely populated urban area and this is a relatively small TIF, it doesn’t have a big effect on the Township. If we were in a rural area, this would be a much greater percentage of the property values and have a much greater impact on things. The bottom line is that the property taxes you as taxing bodies currently receive do not go down. You get the level that you are getting when the TIF starts out. Beth Ruyle indicated that depending on how successful the TIF is, you will end up getting more tax money from the developments. Your role as a joint review board is to listen to the history of the land and what the consultant has to say, and then in the end decide among yourselves as the seven members whether or not to approve the TIF or to take further study. The main requirement for a TIF under state law is the Village cannot establish a TIF unless various criteria have been met. Beth Ruyle stated that in order to establish a TIF, 5 out of 13 criteria, on land with structures, needs to be met. We have 7 out of 13. Donna Henningsen, School District #127, was asking if the TIF would benefit other store owners by improving the store fronts on 111^th St. Beth Ruyle stated that as the property gets older that might be considered. The TIF could be expanded. Donna Henningsen thinks we should look at long range. Keri Fitzgerald, Public member, wants to know how residents in this area feel about the TIF. Ed Guzdziol stated that the average citizen is not affected by a TIF. Taxing districts are affected because real estate taxes stay the same and don’t increase. Bill Buglio, Worth Park District, asked how the park would be affected. Ed Guzdziol stated that the TIF bond money could be used to help the park. For instance, if there were more people going to the park because of the shopping centers near by, TIF money could be given to help the park. School District #127 moved to approve the Resolution and Recommendation of the Joint Review Board Created and Convened Pursuant to the Illinois Tax Increment Allocation Redevelopment Act seconded by Worth Township. A roll call vote followed. (Ayes) School District #127, Worth Library, Worth Park District, Worth Township, Village of Worth and Public Member. (Nayes) High School District #218. (Absent) Moraine Valley and Cook County. Motion carried. Ayes (6), Nayes (1), Absent (2) Ed Guzdziol is hoping to have this done around next March and we will keep the taxing bodies informed Beth Ruyle stated that the next TIF meeting will probably be held around November 2007 Public Member moved seconded by School District #127 to adjourn the Joint Review Board Meeting at 10:40 a.m. A voice vote followed. Motion carried. _______________________________________ Bonnie M. Price, CMC Village Clerk