advisory task force on economic development wednesday, … · 2019-01-18 · advisory task force on...

Advisory Task Force on Economic DevelopmentWednesday, January 23, 2019

7:30 AM24401 W. Lockport Street

Plainfield, IL 605442nd Floor, Conference Room A

Agenda

A. CALL TO ORDER

B. ROLL CALL

C. PUBLIC COMMENTS

D. BUSINESS MEETINGD.1. Approval of Meeting Minutes from October 10, 2018.

ED Task Force Minutes 10-10-18.pdfD.2. Business Plan Update

ED Strategy Update Packet.pdfD.3. Networking Event

D.4. Project Update

E. ADJOURN

1

https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/296784/ED_Task_Force_Minutes_10-10-18.pdf

https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/296787/ED_Strategy_Update_Packet.pdf

Agenda Item No:D.1

Advisory Task Force on Economic Development Agenda Item ReportMeeting Date: January 23, 2019Submitted by: Tracey EricksonSubmitting Department: Planning Department Item Type: MinutesAgenda Section:

Subject:Approval of Meeting Minutes from October 10, 2018.

Suggested Action:

Attachments:ED Task Force Minutes 10-10-18.pdf

2

https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/296784/ED_Task_Force_Minutes_10-10-18.pdf

Advisory Task Force on Economic Development

Meeting Minutes

October 10, 2018

Village Hall, 24401 W. Lockport Street

Attendees: Steve Preze, Robert Galick, Trustee O’Rourke, Cassie Vaughn and no members from the public.

Staff: Jake Melrose

The meeting was called to order at 7:30AM by Steven Preze.

Harold Oliver, Troy Strange, Annette Kenney, and Greg Schaefer were absent.

Public Comments: None.

Business Meeting

Mr. Preze made a motion to approve the minutes from April 12, 2018 and July 11, 2018. Motion was made by Ms. Vaughn. Seconded by Trustee O’Rourke. Motion was carried.

Mr. Melrose discussed their goals for the ICSC deal making event on October 17th and 18th at Navy Pier in Chicago. Staff would be meeting with particular brokers from different sites to then have meetings with tenant brokers to recruit more business knowing of potential, larger developments that may be in play for those sites. Staff also planned on meeting with a development group from out of state that was completing due diligence on the purchase of the Kohls shopping center.

Mr. Melrose provided an update on different economic programming initiatives staff had been working on. The Fire Sprinkler Grant Program was moving forward with the Village working in conjunction with the Plainfield Protection Fire District to create a program that would help offset some of the costs of constructing a fire sprinkler and alarm system in the traditional downtown area. Staff plans to bring this before the Village Board in November or December. Staff would be looking for a recommendation from the task force.

Ms. Vaughn made a motion to recommend approval of the sprinkler grant program. Seconded by Mr. Galick. Motion was carried.

3

Mr. Melrose also provided an update on the Property Assessed Clean Energy (PACE) financing program that was reviewed by the Board of Trustees in June of 2018 as part of the Economic Development joint meeting. The program allows a project to finance clean energy costs of a project by creating a new item on their property tax bill, which allows the development to free up additional capital. There are a few nearby counties currently looking to implement it and Will County has just recently reviewed the program.

Staff asked the task force on how to proceed with the business plan update and if it made more sense to split up the review of it.

Mr. Preze suggested that it be split up to be able to focus in on more specific items for the meeting.

Staff provided an update on multiple projects in the Plainfield area.

Meeting adjourned at 8:25a.m.

4

Agenda Item No:D.2

Advisory Task Force on Economic Development Agenda Item ReportMeeting Date: January 23, 2019Submitted by: Tracey EricksonSubmitting Department: Planning Department Item Type: New Business ItemAgenda Section:

Subject:Business Plan Update

Suggested Action:

Attachments:ED Strategy Update Packet.pdf

5

https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/296787/ED_Strategy_Update_Packet.pdf

January 23, 2019

ECONOMIC DEVELOPMENT TASK FORCE

VILLAGE OF PLAINFIELD

24401 W. LOCKPORT ST.

2nd FLOOR, CONFERENCE ROOM A

SUBJECT: BUSINESS PLAN UPDATE The Village approved the “Business Plan” in 2010 that implemented specific economic development measures that would assist in providing a more business/development-friendly environment. Some of those measures include: Eliminating local impact fees, introducing new project review procedures for efficiencies, analyzing the land cash values for residential development. The business plan also considers growth management strategies for if/when residential development came back stronger and the plan also provided a market analysis and strategies for staff and the village to take to continue to move the commercial and industrial development forward, and what type of users to recruit. Over the past two years, the Advisory Task Force has analyzed different variables to the business plan that includes, economic programming, residential impact fees, incentive policy, and other such measures to provide an update to the business plan. Through these conversations and the guidance of the Village Board through the joint board discussions, staff has prepared a rough draft of a new economic development strategy plan. As previously suggested at the Advisory Task Force meeting, staff has split up the new update into two sections to allow more time and focus to be spent on each. The proposed update is the first half of the plan that primarily handles the introduction section, overview of the Village including a SWOT analysis, and the residential development of the Village. Staff is seeking the Task Force’s input on the proposed draft. Attached is the former business plan and the update rough draft with the exclusion of the commercial/industrial portion. The commercial/industrial sections will be reviewed at the next task force meeting.

6

VILLAGE OF PLAINFIELD

STRATEGIC PLANNING BUSINESS PLAN

February 2010

7

Over the past several months staff has held a series of meeting with the Village Board along with holding weekly meetings with representatives from the development community in order to formulate a new “Business Plan” that will assist the Village in recovering from this recent economic downturn in residential and economic development. Staff anticipates that the Village of Plainfield has the real opportunity to play off its many strengths which includes its good demographics, well designed neighborhoods and general perspective that Plainfield is a desirable place to live. The goals and objectives of this business plan are to place the Village in the most competitive position economically once the recovery starts without sacrificing the Village’s current high standards. The Plan started with a strategic review of all of the Village’s current development review practices and the development fees to determine how the process can be improved and what development fees would be sustainable over the long run. One of the goals of this plan is to avoid the boom and bust growth patterns that the Village has recently witnessed and to create a new sustainable growth management policy that will guide the Village through the next decade.

8

One of the biggest challenges relating to attracting new residential and commercial devel-opment to the Village of Plainfield is the current residential impact fees that exceed $35,000.00. Based on this level a purchaser of a $300,000.00 house would see 10% of their purchase price go towards impact fee. Over the duration of a conventional mortgage the purchaser would lose almost $100,000.00 in purchasing power as a direct result of the Village’s impact fees. ($35,000.00 x standard interest rate over 30 years) Based on this fact the staff believes that it is imperative to establish a new sustainable fee structure that will support the required municipal services and capital investment that the Village residents require. As part of the Business Plan, staff is proposing that all new impacts be waived on all new residential permits and new commercial development. Currently, these fees equal approximately $6,750.00 per unit. Staff will work with the School and Park Districts on a new fee structure that will reflect the current market value of land in the Plainfield area. The current land/cash market value for an acre of improved land is approximately $140,000.00 an acre. (Plainfield School District) Based on current trends, staff believes that this value has declined between 50% to 75% based on the most recent sales data. Currently, staff is in the process of obtaining a new ap-praisal and market value for an improved acre of land in the area.

IMPACT FEES

9

CURRENT FEE STRUCTURE Annexation $2,500.00 Traffic $2,000.00 Municipal $2,000.00 Beautification $ 250.00 School/ Land $4,063.00 School/Cons. $5,220.00 School Trans. $3,284.00 Fire $1,000.00 Park $4,063.00 Sanitary Tap-on $3,600.00 Water Tap-on $3,000.00 Building Permit $3,000.00 PROPOSED FEE STRUCTURE Sanitary Tap-on $3,600.00 Water Tap-on $3,000.00 Building Permit $3,000.00 School, Park and Library Fees are under review * Based on a four bedroom house

COMMERCIAL IMPACT FEES To attract new commercial development, staff is proposing that all impact fees for new commercial be waived and these would include Annexation and Traffic be waived. The Village would continue to collect the sanitary and water tap-on fees along with the applicable building permit fees.

10

ENGINEERING REVIEW As part of the Business Plan, staff and members of the Development community have formulated a new process for engineering review in the Village. In lieu of requiring final engineering at the time of Site Plan review, only preliminary engineering will be required. Final engineering will be required at the time of the building permit or prior to any earth work. In addition, a new codified engineering agreement will be in-corporated into the Village’s Subdivision Code that will re-quire a deposit and establish new flat fees based on a percent-age of the estimated cost of engineering. The benefit of this new Engineering policy is that members of the development community will be able to budget their engineering costs into their projects. In addition, allowing for preliminary engineer-ing the time of site plan review potentially saves the building community the substantial costs of preparing final engineer-ing. All of these proposed changes are intended to make the re-view of engineering a much more predictable process and to lower the costs of review. Lowering engineering review costs will help the Village create a more competitive environment to attract new development. One of the largest components in any builders expenses in the development process is engineer-ing and the Village is trying to minimize this expense without lowering the Village’s standards.

11

BUILDING CODES Another key element of the Business Plan is a com-prehensive review of the Village’s Building Codes and policies. Currently, the Village is under the 2003 International Code and after extensive discussion with the development community it was determined that the adopting the 2009 International Code would produce substantial costs to the development commu-nity with no real benefit to the safety and general welfare of the community. The Village will be adopting the new “Energy Code” that was recently approved by the state legislature and as part of this new mandate the Village will be modifying some provisions in its current building code. To address the requirements of the new Energy Code the Building Department is proposing to allow the use of “Structural Insulated Sheathing” in lieu of plywood. This change should provide an extensive saving to the building community while substantially improving the energy efficiently of home designs. This new material conforms with the requirement of the new state “Energy Code” and provides the same structural integrity as plywood does. As part of the Village’s commitment to maintain our current standards the Village will commit to update the building codes as new materials are introduced and as building innovations continue to development.

PROCESS As part of the Village’s continued commitment to improve the entitlement process the staff is making a commitment to process new Concepts, Site Plans and Preliminary & Final Plats within a 45 day development review period once full applications have been submitted. In addition, staff will make the commitment to process new Planned Developments, Rezoning, Variances and Annexations within a 60 day development review period once a full appli-cation has been submitted. To accomplish this goal staff along with the cooperation of the other governmental agencies and the Village Engineer will cre-ate a comprehensive pre-application process which will help guide the developer through the approval process. The goal of this new policy is to outline exactly what is expected from the applicant in order for an expedited review process. This new process will emphasize communication and full feedback from the various stake holders and team members who will be re-viewing the proposed development. Along with the changes that are being proposed as part of the engineering review process, it is staff’s hope that these new procedural changes will speed up the review process substantially. The key to a successful review process it to outline exactly what is expected from the applicant and to move the case through the process in a timely fashion once a full application has been submitted. The staff will con-tinue with maintaining the Village’s current standards without comprising the quality of the professional review.

12

GROWTH MANAGEMENT Another component of the Business Plan is to create a sustainable growth management policy that which will help minimize the impact that residential growth may have on the Village, School and Park Districts. Along with eliminating the impact fees to the Village, fu-ture residential development should be focused towards those exist-ing developments that have a surplus of vacant lots and where the infrastructure has already been installed. Future residential develop-ment should be focused towards infill areas and parcels that are adja-cent to the Village’s existing municipal boundaries. Concurrent we creating a more sustainable fee structure, it is also im-portant to realize that the Village may be doing substantially fewer building permits in the future and that the Village may not see the 1,000 to 1,400 new home starts again for generations. The new sus-tainable approach must focus of a reasonable number of housing starts in the future which will create a reasonable rate of growth. This new approach will help minimize the impact on the Village’s infra-structure, staffing levels and will minimize the impact on the other governmental bodies. The Village’s numerous planning guidelines will help shape the fu-ture of the Village. As highlighted throughout this document the Village continues to be committed to maintaining the high standards that have been previously adopted by the Village Board. Through the process of reducing the impacts fees to a sustainable level the Village is providing the development community with the ability to maintain the quality of their home designs and subdivision lay-outs.

13

DESIGN and DENSITY One of the most important aspects of this plan is to ensure that none of the standards that the Village has established over the past number of years is compro-mised as it relates to quality and design. While many leading experts in housing have projected that the Village’s future price point in housing is between $200,000 to $350,000.00, there is nothing in this plan that diminishes the Village’s design standards. The staff has been very sensitive in working with the development community to ensure that future residential developments are consistent with the general character of the Village. While homes in the future may be smaller based on the current housing trends, there is no reason to believe that the general quality of design that the Village so greatly values cannot be maintained. Through the process of creating a fee structure that is sustainable the Village will provide the development community with the financial ability to maintain the quality in design that the Village expects. Another element of the Business Plan is the recognition that density can have an impact on the costs of housing in the Village. Providing additional units to a project can spread the costs out and lower the pricing of homes. Most recent residential projects that have been recently approved in the Village over the past ten years have incorporated a density below 2.4 units per acre. The Medium Density district allows for a density range between 2.1 to 3.0 units per acre and the Village Residential district allows for a density of between 4.0 and 6.0 units per acre. Based on the future trends in the housing industry, Plainfield could see new projects in the future with slightly higher densities, closer to the lowest density in the Village Residential District. Recent projects like Playa Vista and Harmony Ridge have approached this density classification. However, based on staff’s dis-cussions with the development community there appears that there really is no de-mand to exceed a density of 4.0 units per acre.

14

Grande Park 2.3 units per acre Century Trace 2.56 units per acre Dunmoor Estates 1.79 units per

Kensington Club 1.91 units per Wallin Woods 1.96 units per Liberty Grove 2.51 units per acre

WHAT DOES DENSITY LOOK LIKE ?

15

ROUGH DRAFT

Plainfield Economic Development Strategy 1 | P a g e

Village of Plainfield

Economic Development Strategy

January 2019

16

ROUGH DRAFT


TABLE OF CONTENTS

17

ROUGH DRAFT


Executive Summary

In 2010, the Village developed an assessment of its current economic situation in response to

the economic downturn and the experiences the Village had through the recession, which

formed into the Business Plan. Through these experiences and information garnered from

business retention visits, Village staff prepared this business plan to address residential growth

and economic development. The business plan identified key strategic goals and policies in an

effort to allow for developing in the community economically viable while still adhering to the

important design standards in place.

Village staff is proposing the Plainfield Economic Development Strategy as an update of those

key strategic points, in particular, a current assessment of the Village’s demographics & current

marketplace, residential development and impact fees, the Village’s plan review processes,

economic incentives and public/private partnerships – but also to expand off of these concepts

to further our implementation strategies as a Village.

Section 1: Mission Statement

To provide an economic implementation plan that is reflective and elaborative of the goals and

objectives established by the Village’s strategic and comprehensive planning processes while

setting economic policies and strategies that will encourage economic growth, foster a

business-friendly environment, and maintain the essential character of the community.

Section 2: Initial SWOT Analysis (Strengths, Weaknesses, Opportunities, & Threats)

Any economic development strategy, business plan or the like should always analyze the

strengths, weaknesses, opportunities, and threats that are or may occur. Utilizing feedback

from many different public workshops that have taken place, staff has formulated the following

SWOT analysis:

Strengths

1. Strong demographics

2. Above average home values in the Chicagoland area

3. Highway access & quality corridors

4. 2040 growth projections over 80,000

5. Business friendly

6. Quality education and schools

7. Low & steady tax rates

8. No food & beverage tax rate for restaurants

9. Primarily newer housing stock & sustainable residential growth

10. Highly desired recreational opportunities and leisure activities

11. Expanding healthcare system

12. Public utilities infrastructure capabilities

13. Active citizenry

14. Pace commuting option to Downtown Chicago 18

ROUGH DRAFT


15. Historic district and U.S. Route 66

Weaknesses

1. Developers wary of retail market due to changing retail landscape, poor performances of

retailers, limited capital opportunities and uncertainty in Illinois economy.

2. Low daytime population

3. Geographic positioning between 3 of the most populated communities in Illinois

4. Traffic congestion and highway bottleneck.

5. Industrial corridor distance from interstate access.

6. Sprawling population – lack of density or perception of.

7. Lack of identity – perception Plainfield is still a small town

8. Retail leakage from Plainfield businesses.

9. No Metra Train (a need to highlight Pace commuting option).

10. Historic residential housing stock – need for reinvestment.

11. Limited housing options for first time buyers or renters? ---What’s this housing stock?

Opportunities

1. 143rd Street Extension grant application

2. Expansion of downtown to the Village Center

3. Reroute of IL Route 126 and realignment of Main Street to James St.

4. Assistance for business development

5. Gigabit broadband implementation

6. Identity & directional signage

7. Cultural opportunities (community arts program, special events)

8. Development of Targeted Market Areas

9. Enhanced partnerships with other entities (County, CED, County Workforce)

10. Marketing and promotion of assets (i.e. recreation, downtown)

11. Downtown partnership creation.

12. Leveraging state & federal economic development funding sources

13. Continuation of political stability – one team, one goal

Threats

1. Proximity between two highly successful mall corridors.

2. Shrinking retailer pool.

3. Other major retail developments projected, i.e. Rock Run Crossings.

4. Lack of parking perception in Downtown.

5. Overpriced vacant land and development areas.

6. Historic or aged commercial buildings in need of life safety/ADA improvements.

7. State of Illinois inconsistencies and budgetary issues.

8. Limited housing types in the economic scale may decrease labor pools in market.

19

ROUGH DRAFT


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.

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. Utilize the new Route 30 TIF District to create new development and redevelopment

opportunities in the corridor and to identify needing programming that may encourage

these activities.

20

ROUGH DRAFT


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.

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) 34.9 (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%

Office Development & Opportunities

A. The development of new office is limited in the suburbs.

B. Office space absorption is low in the suburbs – plentiful stock still available in Village.

21

ROUGH DRAFT


C. Paradigm shift for corporate offices back to downtown Chicago.

D. Tech start-ups prefer to be in urban settings.

E. Suburban office development’s future is questionable and remains to be unseen.

Industrial Development & Opportunities

A. Manufacturing industry is very selective in its criteria with skilled labor being a primary

recruitment necessity and issue for the southwest suburb area.

B. Interstate 55 corridor as the industry continues to expand.

C. The Starline/Depot Drive P3 presents a recruitment and development incentive to spur

development of small/mid-sized units of 15,000SF to 25,000SF.

D. Continued business/industry retention surveying.

E. Utilization and promotion of the Will County Workforce Development training grants.

F. Resolving the transportation issues through the continued pursuit and support of the

143rd Street extension and other infrastructure improvements.

G. Promotion of the gigabit broadband access to data center and tech industries.

H. Expansion of housing options in select areas for entry-level workforce.

22

ROUGH DRAFT


Residential Development & Impact Fees

In 2010, the Village of Plainfield was one of the first communities in the region to scale back its

impact fees in an effort to alleviate some of the development costs during the nation’s economic

struggles. The annexation fee, municipal fee, and beautification fees were all eliminated, which

typically totaled to $6,750.00 per 4-bedroom home. The following is an assessment of the

village’s residential growth and the region’s, the impact fees, and moving the residential growth

forward in a reasonable, sustainable manner.

Section 1. Regional Analysis of Growth & Fees

Plainfield continues to be one the leaders in single family housing growth in the southwest

suburbs averaging near 150 homes built each year since the recession, despite having higher

impact fees than most communities and adhering to a high level of architectural and planning

standards.

Communities in the area have adjusted their impact fees in an effort to remain competitive in

their marketplace, such as Oswego in 2016 that adjusted their impact fee structure to be similar

to Plainfield’s (i.e. tap-on fees, permit fees, local impact fees, etc.) while lowering costs through

a decrease in land cash values. New Lenox continues to provide an incentive extending a 50%

reduction in municipal impact fees for 10 years from August 2016 to those developers

established prior to this date in select subdivisions.

While it remains to be seen, it is staff’s belief that even with an incentive the home building

activity would not dramatically increase in the Village and may even negate some of the positive

impacts of growth if incentivized. Rather, the Village looks to allow the housing activity to be

driven by the natural progression of the market remaining fluid for those anomalous periods

such as 2010.

Section 2. Impact Fee & Land Cash Value (LCV) Analysis

Through researching the impact fees of other communities and discussions with builders, staff

has found that builders first look at location, then cost of land/impact fees and then the ease of

working with that community. The location needs to be able to justify the fees, and the

community’s ability to work efficiently with the builder creates a good working environment that

breeds success. The village’s rate of single-family building permits has remained consistent for

the last four years averaging ~150 homes per year, and peaking in 2018 at 180 permits,

suggesting that the home building climate is stable and the existing impact fee structure, while

on the higher side, is being justified by the location.

The fair market value or land cash value (LCV) and fee is based off of the LCV of an acre

multiplied by the acreage amount per home. This value amount is established by the Village

Board. In 2006, the LCV was set at its current value - $139,725 for District 202 with Oswego

districts established at $124,200.

23

ROUGH DRAFT


Recently, communities have begun to reduce this value to reflect the new land values of today.

The village of New Lenox recently modified its fair market value from $130,000 to $111,000.

The village of Oswego also amended their LCV changing it from $156,564 to $79,500, as well

as Elgin, IL amending theirs from $143,793 to $85,000. Below are the values of the districts

previously established and examples of other communities’ LCV.

Organization LCV 4 Bed - SF

Detached Impact Municipal

Impact Fee

Plainfield Township Park District $139,725 $5,561.06 $0

Plainfield Consolidated School District 202

$139,725 $5,561.06 $0

Oswegoland Park District $124,200 $4,943.16 $0

Oswego Community USD 308 $124,200 $4,086.00 $0

New Lenox Districts $111,000 $1,870

Joliet Districts $109,556 $3,600 – $4,100 $4,100

Oswego Districts $79,500 $0

Romeoville Districts $100,000 $2,317 N/A

Bolingbrook Districts $160,000 N/A

Shorewood School LC Fee $46,676 $1,725.70 $1,400

Shorewood Park LC Fee $46,676 $1,650.70 $1,400

Channahon School LC Fee $45,000 $2,951.25 $0

Channahon Park LC Fee $45,000 $2,540.70 $0

Minooka Districts $45,000 $0

As illustrated in the above chart, Plainfield’s land cash value is not representative of

today’s fair market value of land. As a simple example, if the New Lenox LCV of $111,000

is applied to Plainfield’s current calculation, the school and park impact fee would be

reduced by $2,286.52. If the Oswego LCV of $79,500 is applied, it would reduce the LCV

obligations by approximately $1,500.

In order to offset the Village’s impacts, Village staff worked with the community’s local tax

districts to adjust the land cash value of the area to be more consistent with today’s values. The

Plainfield Park District and District 202 LCV was adjusted to $120,000 and the Oswego districts’

LCV were adjusted to $79,500 consistent with Oswego’s recent study. The Village Board also

approved a residential impact fee of $2,000 for each new home. The addition of the new impact

fee combined with the decrease in th LCV adjustments will offset each other and the typical

Village’s building permit and impact fee totals will see a very minimal increase. 24

ROUGH DRAFT


Section 3. Promotion of Amenities, Affordability & Location

The evaluation of Plainfield’s impact fee structure and its current status in single family

development is to identify our competitiveness in the residential marketplace. The Village

remains competitive in the residential marketplace; however, we are still trailing behind select

communities. The Village of Plainfield has many amenities that can attract a young family with

its trails and pedestrian bridges, the great schools and parks, a direct Chicago commute,

Downtown Plainfield and its proximity to other regional attractions. The questions become:

• How does the potential home buyer find us?

• How are people looking for a home become aware of all that Plainfield has to offer?

• What platform are we providing to illustrate these amenities?

• How are we separating ourselves from neighboring communities?

The promotion of Village assets is not to interfere with the “natural progression of building

activity” as stated earlier but to help inject demand into the building activity of the community –

this may have a positive effect not only on building activity, but on home values as well.

Section 4. 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 home values were 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, and that trend seems to be continuing through 2018 and into 2019.

C. Plainfield’s peak median home value in September 2006 was estimated $249,000.

D. Its lowest value was found in 2012 at an estimated $177,000.

E. Plainfield’s 2018 median home values were approximately $248,700, nearing the peak

values of 2006.

2. Residential Development Trends & Opportunities

25

ROUGH DRAFT


A. The Plainfield residential market plateaued from 2013 – 2015 averaging 145 single

family permits per year; however, in 2018 the Village saw an upswing in SF permits with

180 pulled through the year.

B. Pulte’s new Northpointe single-family subdivision went under construction in 2018

making it one of the first subdivisions of scale to begin construction in over 10 years.

The Village also approved two subdivisions for final plat and have/are reviewing two

other subdivisions. In 2018, the Village Board reviewed over 1,000 new units.

C. Multiple residential development sites have completed entitlements with the first, new

subdivision under construction of size in many years.

D. 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.

• 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.

E. The multi-family and apartment development trends are still indicating more

development is warranted and profitable, there is strong indication and expectation that

26

ROUGH DRAFT


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)

F. 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.

• Development/HOA regulations that provide for appropriate usage of the property

in the future, i.e. occupancy maximums, maintenance.

• Rental housing inspection program designed to encourage and foster high quality

property management.

Section 5. Housing Study & Analysis

It is customary for many communities to create and update an existing land use table that

reflects the future land use categorization of the Comprehensive Land Use Plan. This allows a

community the ability to track its progress in specific categories to ensure the Plan is being

implemented in the correct manner. It also provides staff and incoming developers with

guidance as to what the community’s housing stock has to provide them with the most accurate

27

ROUGH DRAFT


and up-to-date information possible. It is also important to understand an approximate balance

of these different housing types.

Currently, the Comprehensive Land Use Plan provides a table of the future land use

designations and the proposed acreage and percentage of that area representing the Future

Land Use Map. The future land use table and map helps provide the Village with guidance of

potential locations of these uses and some classification of the uses, such as density. Staff

recommends that an existing land use table be calculated that mirrors the future land use table

as closely as possible to identify its current state of development.

28

Agenda Item No:D.3


Subject:Networking Event

Suggested Action:

Attachments:

29

Agenda Item No:D.4


Subject:Project Update

Suggested Action:

Attachments:

30

advisory task force on economic development wednesday, … · 2019-01-18 · advisory task force on...

Documents