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HomeMy Public PortalAbout2017-11-08 Special Advisory Task Force Agenda PacketAdvisory Task Force on Economic Development Wednesday, November 08, 2017 7:30 AM 24401 W. Lockport Street Plainfield, IL 60544 2nd Floor, Conference Room A Agenda A.CALL TO ORDER B.ROLL CALL C.PUBLIC COMMENTS D.BUSINESS MEETING D.1.APPROVAL OF MEETING MINUTES - 10/11/17 ED Task Force Minutes 10-11-17.pdf D.2.ECONOMIC DEVELOPMENT STRATEGY GOALS ED Strategic Planning Memo November 17.pdf E.ADJOURN Advisory Task Force on Economic Development Agenda Item Report Agenda Item No. 2016-668- Submitted by: Jake Melrose Submitting Department: Planning Department Meeting Date: November 8, 2017 SUBJECT APPROVAL OF MEETING MINUTES - 10/11/17 Recommendation: ATTACHMENTS ED Task Force Minutes 10-11-17.pdf Advisory Task Force on Economic Development Meeting Minutes October 11, 2017 Village Hall, 24401 W. Lockport Street Attendees: Steve Preze, Greg Schaefer, Lee Goodson-Hassert, Troy Strange, Trustee O’Rourke, and two members of the public. Staff: Jake Melrose, Jon Proulx. The meeting was called to order at 7:32AM by Chairman Greg Schaefer. Michael Konrad, Cassie Vaughn, and Harold Oliver were absent. Public Comments: None. Business Meeting Motion was made by Ms. Goodson-Hassert to approve the July 12, 2017 task force minutes. Seconded by Mr. Preze. Motion carried. Mr. Schaefer asked staff to present the agenda item Economic Development Strategy. Mr. Melrose stated staff provided an update to the village business plan that incorporates the task force’s recommendations, such as the consideration of multi-family development to allow for balanced housing, especially near the downtown core. Mr. Preze provided a suggestion of incorporating the need for this type of housing as it relates to the recruitment of specific industries. Mr. Melrose stated that this could be incorporated into the recruitment section of industrial business as well. Mr. Melrose briefed the task force on other amendments to the business plan such as new recruitment goals, as well as impact/development fee adjustments. The task force agreed that another meeting in November would be appropriate to discuss the goals in further detail. Mr. Schaefer introduced the next agenda item – Downtown Shopping Initiative. Mr. Melrose stated that there has been some difficulty not only recruiting small business retail to the downtown core but retaining this business as well. Staff had interview out going businesses in Plainfield that was also located in other communities. These communities offered a small business grant program that provided startup assistance for them. Staff seeks the task force’s recommendations on the matter. The task force agreed that it was worth more investigation and for staff to pursue more research on the programming and present the findings once completed. Mr. Schaefer asked staff to present the next agenda item, Hotel Feasibility Study. Staff stated that the village has garnered some interest with hotel developers with recent visits from multiple developers touring the village. Each developer believes the village is close to obtaining a hotel; however, they would require a hotel feasibility study to illustrate the demand and need for this that will also present a basic proforma, site selection rankings, and any economic gaps that may be present. Mr. Preze made a motion to recommend approval of the study. Seconded by Mr. Strange. The task force recommended to the village move forward with the study. Mr. Schaefer introduced the next agenda item – Networking Event. Staff briefly discussed that staff will be looking to have a similar networking event than last year on Thursday November 2nd. Staff also provided an update on specific project areas including the downtown, village center, the Boulevard, and the Route 59 north corridor, as well as the housing market. Mr. Preze made a motion to adjourn the meeting. Seconded by Ms. Goodson-Hassert. All in favor. Meeting adjourned at 9:05a.m. Advisory Task Force on Economic Development Agenda Item Report Agenda Item No. 2016-669- Submitted by: Jake Melrose Submitting Department: Planning Department Meeting Date: November 8, 2017 SUBJECT ECONOMIC DEVELOPMENT STRATEGY GOALS Recommendation: ATTACHMENTS ED Strategic Planning Memo November 17.pdf November 8, 2017 ECONOMIC DEVELOPMENT TASK FORCE VILLAGE OF PLAINFIELD 24401 W. LOCKPORT ST. 2nd FLOOR, CONFERENCE ROOM A SUBJECT: ECONOMIC DEVELOPMENT STRATEGIC PLANNING SUMMARY The Village’s business plan currently lays the ground work and strategic plan specifically for economic development in Plainfield. In light of recent discussions and changes to our overall landscape since the recession, staff is proposing to amend the business plan in regards to the goals, recruitment, and residential impact fees. The task force has already identified changes to the incentive policy, which will be incorporated into the amendment. Below is a “rough draft” of particular sections of the business plan/strategy plan amended with the specific recommendation from the task force as it relates to the availability of housing options particularly multi-family housing. Section 3: Economic Development Goals & Objectives The Village has outlined numerous economic development goals through the years as part of the Comprehensive Land Use Plan and the Village Strategic Plan. Below are the goals that have been established by these planning processes and additional goals specific to economic development: A. Plan for a new business park and for retail goods and services in locations identified in the Future Land Use Plan. B. Pursue development of a business park near the I-55/U.S. Route 30 intersection and the long term redevelopment of Four Seasons Park. C. Pursue the expansion of the hospital services that are provided to the Plainfield residents. D. Build a relationship among the Economic Development Task Force, the Village Board, the Chamber of Commerce, the School District, the Park District, and the Plainfield business community that encourages the exchange of information. Page | 2 E. Foster the growth of quality multi-family developments in suitable locations in the village to provide a diversity of housing stock (i.e. transitional commercial areas, downtown/village center area, and areas limited value with alternative developments) F. Establish an effective Business Recruitment Plan which will promote and market the Village of Plainfield to businesses and developers who are searching for potential sites for their business facility or commercial development. G. Implement a business retention program to retain the industrial and commercial base existing in the Village and assess the economic climate of the village. H. Provide creative solutions for identified issues with business recruitment and retention. I. Maintain current demographic information, a land and building inventory and financing and grant opportunities available for businesses investigating expansion options or seeking a new site for a business and for developers seeking information related to a new retail commercial center. J. Leverage and encourage the utilization of existing programming, i.e. façade assistance. K. Complete a TIF district analysis for the U.S. Route 30 corridor from Renwick Road southeast to Interstate 55. L. Explore marketing opportunities to promote the many village assets to attract developments, businesses and new residents to Plainfield. Section 4: Market Overview Below is a market summary of the Village’s demographic regional positioning, the residential market, retail market, office market and industrial market providing key points and recommendations to continue the Village’s upward trajectory in economic development. Demographic Regional Positioning A. Retail site location base is demographics and understanding your position in the region. B. Plainfield’s median household income is the highest in the State of Illinois for populations over 40,000. C. The Village’s geographic location is fixed not only between the 3 of the largest communities in the region but in the state. Aurora #2, Naperville #4, & Joliet #5. Page | 3 D. Plainfield’s housing affordability remains an advantage that combined with a successful and advancing downtown will keep housing starts successful and home values rising. West/Southwest Suburb Demographic Analysis Population (2015 Estimate) Median Income Median Age Bachelor’s Degree or Higher Plainfield 42,527 (4/10) $111,536 (1/10) 34.4 (5/10) 48.8% (2/10) Oswego 30,355 $97,323 35.6 44.1% Naperville 141,853 $109,512 38.5 66.1% Joliet 147,861 $62,008 32.5 23.4% Shorewood 16,747 $90,882 38.2 38.1% New Lenox 25,800 $96,327 36.4 39.1% Yorkville 18,451 $86,387 31.6 33.0% Romeoville 39,719 $66,705 31.8 25.4% Aurora 200,661 $63,569 31.4 31.2% Lockport 25,175 $79,845 35.4 33.3% Residential Market The residential housing market has slowly climbed out of the recession that devastated the industry from 2008 to 2012. While home building has steadily increased in Plainfield, it is still far lower than the late 90’s/early 2000’s and nearly 1000% lower than at its peak. All indications suggest that the market may not see that level of development for many years, or at all; however, the Village will be able to grow at a more sustainable and manageable level. For now, the Village can only assess the current market and respond accordingly by continually assessing the development trends of the day and being adaptive to those markets. Below is an assessment of the local residential market and national trends: 1. Home Values A. As of January 2016, the Chicagoland area was still -18.4% from its peak in 2006. B. This is last and slowest to bounce back in the United States when compared to other metro areas. Page | 4 C. Plainfield’s peak home value was in September 2006 at an estimated $249,000 average home value. Its lowest value was found in 2012 at an estimated $177,000. D. Plainfield’s home values in current market are at approximately $238,000, which is 4% below the peak values in 2006. E. While the local residential market has not bounced back completely from the recession, the numbers indicate strong signs that the Village is above average in the Chicagoland market and remaining highly competitive. 2. Residential Development Trends & Opportunities A. The Plainfield residential market has bounced back and plateaued at approximately 150 – 160 single family building permits per year, which is on par with competitive communities. B. Multiple residential development sites are completing entitlements with national builders pursuing these developments. C. The housing buying trends of millennials have seemingly gone from a trend to a pattern. During and since the recession, the age group from 18 to 34 years old are preferring to rent rather than buy due to multiple reasons including housing inventory and stock availability, affordability, credit worthiness, and other various reasons such as flexibility and mobility in their life. The below are other varying citations and survey data to support this assertion: • As stated by Mark Gianopulos of Metrostudy on October 31, 2016, “Student debt, real estate taxes and rising construction costs have created barriers to entry for the first-time home buyer and/or the Millennial buyer” creating demand for different housing options. • In a RE Journals (Midwest Real Estate Magazine) article Dan Rafter cites an Experian home ownership survey stating, “More than 27% of the survey respondents stated they will be opting out of buying a home in the next 5 to 10 years.” This number is up from 19% in 2016. • The article also states, “many consumers who can afford to buy homes say they will instead rent during the next five to 10 years. Experian’s survey found that 29 percent of consumers with incomes higher than $100,000 are choosing to opt out of buying a home.” • The largest increase was among upper-middle class households (households earning between $126,000 to $188,000), who saw their share of renters grow by 6.3 percentage points, from 27.2 to 33.5 percent. Page | 5 • The share of renters between the ages of 18 and 34 jumped from 62.5 percent in 2006 to 71.6 percent in 2014. This increase in renting was even larger among Americans between the ages of 26 and 34, rising by 10.9 percentage points between 2006 to 2014, compared to 5.9 percentage points for the younger group. The multi-family and apartment development trends are still indicating more development is warranted and profitable, there is strong indication and expectation that multi-family development will still be of interest in the coming years for Plainfield. Below are statistics and facts associated with multi-family developments: • Over 77% of all rentals nationally have 2 or less residents • Over 60% of renters do not have children. • Renter-occupied households represent 37% of the total U.S. households – the village’s rent-occupied units represent 13% of Plainfield’s total household units. • The average income of renters in apartments built between 1996-Present is $57,967 • Single-family homes produce 3 times the amount of school children than apartments. • Average household size of a renter occupied in Plainfield is 2.68 – owner occupied is 3.47. • INSERT PLAINFIELD EXAMPLE OF SCHOOL IMPACT OF THE SPRINGS ON 127th VERSUS TAX PRODUCTION ($965,628 property taxes) (Source: National Multi-Housing Council (NMHC) tabulations of 2016 American Community Survey) Newly proposed, quality multi-family housing options for residents is recommended to be considered in areas in the downtown/village center area, as well as other opportunities that either transition heavy commercial areas to single family or areas of limited land area that is not suitable for other types of development. Downtown in particular will benefit from such development due to the increase in trade area density for existing businesses and business attraction, while adding a younger population. A sustainable quality multi-family development can be achieved through instituting certain measures as part of the development that could include: • Development impact fees • Design standards that can include high quality exterior materials and design, square footage minimums of rentals, finishes, etc. Page | 6 • Development/HOA regulations that provide for appropriate usage of the property in the future, i.e. occupancy maximums. • Rental housing inspection program designed to encourage and foster high quality property management. It is important to continue to have a diverse housing stock in the community to provide different housing for all walks of life adhering to the 0.97% of total future land use distribution of the village as so provided by the Comprehensive Land Use Plan. D. The Village’s traditional residential neighborhood in the downtown area is an opportunity for infill housing development and rehabilitations similar to that of Lagrange, Western Springs, and Naperville – a building incentive program could be established to promote this growth adding EAV to an area that is statistically lacking in economic demographics compared to other Plainfield areas. RECRUITMENT FOCUS SECTION Industrial Focus The previous Village business plans identified the below industries that would be considered targeted industries and these industries still hold true today. Distribution facilities continue to become a necessary component in today’s economic climate with limited space available in the market • Beverage/Food Manufacturing • Medical Devices & Instruments • Advanced Electronic & Control Systems • Scientific Research and Development including Biotechnology (Life Science) • Advanced Materials & Chemicals • Alternative Energy/Green Technology • Communications & Information Technology • Military/Homeland Security The Will County Center for Economic Development (CED) current primary focus of industry recruitment is in four broader categories including: Manufacturing, Transportation Logistics, Food, and Energy. With the recent implementation of Metronet’s gigabit broadband infrastructure and Comcast’s upgrading response to this implementation, the Village has positioned itself to be a more attractive location for many of these industries, specifically tech driven and military/homeland security complexes. That said, it should be noted that in order to effectively recruit tech driven companies, these industries require a certain type of housing in their location that allows them to recruit the right type of workforce. As the Urban Land Institute’s High Density Development report, Page | 7 “Another emerging body of research suggests that higher-density development is an important component of economic development initiatives and helps attract new employers. “Information economy” is a term used to define the growing industries based on the economics of the Internet, information goods, and intellectual property. Workers in this field are known as “knowledge workers,” and many believe they are the future of the American economy. These workers are comfortable with the latest technology and, because their skills are transferable, choose their jobs” A quick search of tech companies in the Illinois area will undoubtedly illustrate a cluster in the Chicago market. These companies have purposely placed themselves in the urban setting that provides a certain type of lifestyle and amenity that their talent recruitment would be looking for. By 2020, the average of a millennial will be 30 years old. While most surveys has show millennials continuing to pursue apartment/multi-family living, a recent survey suggests that when millennials consider “long-tern” housing they choose suburb living 2-1 for the schools and affordability. This eventual gravitation to the suburbs may lead to tech companies opting to start up/relocate to suburb areas that can still provide a high level of amenity they are accustomed to in the city.