The following provides a summary of the September 21, 2015 development presentations along with related survey results.

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1 Summary of Theater Proposal Presentations. Five developers were invited to present their proposed developments for the Highland Park Theater site to the Committee of the Whole on Monday, September 21, The intent of this Special Meeting was to provide the public an opportunity to learn more about the details of the five proposals under consideration, and to solicit public feedback. Three of the five development proposals (Baker, Geraci/Katz and Morningside) include the Theater site and the entirety of the Ori South Public Parking lot to the east of the Theater. The other two proposals, Canal and Dayan, utilized only a portion of the Ori South Lot. The Dayan proposal merely calls for a reconfiguration of the parking to create space for seasonal outdoor retail use while the Canal proposal utilizes a portion of the lot for access to an underground parking facility they propose to construct. The following provides a summary of the September 21, 2015 development presentations along with related survey results. Baker Development Corp. Dan Slack of Baker Development Corporation presented a proposal for 10 2 story luxury townhomes along Central Avenue and 31 condominiums set behind the townhomes on the theater property and Ori South lot. He explained that their proposal offers significantly lower vehicle traffic impact than commercial uses and also provides a promenade. Vehicular ingress access is from east and egress to the west. There are eight public parking spaces proposed to be added along the frontage of Central Avenue. Mr. Slack presented a site plan and rendering of the development and explained that the height of the multistory condominium building would be mitigated by the townhomes from the vantage point of pedestrians along Central. Parking is provided in a lower level parking garage. The plan provides more parking than is required by zoning with more 101 parking spaces or to 2.46 spaces per unit. To meet the affordable housing requirement Baker would provide six (6) renovated affordable housing residences, and donate them to Community Partners for Affordable Housing. Mr. Slack explained that the project would enhance the streetscape on the east end of Central Avenue and will generate over $1M per year in incremental revenue from real estate taxes. Although financial offers were not discussed, he emphasized that their purchase offer has no contingencies. Mr. Slack s partner Steve Korol explained that the condominium units will range from 2,400 to 3,200 square feet and the town homes will be approximately 3,200 square feet. The price of the townhomes will start at $899,000 and the average price of the condominiums will be $1.12 million. One resident expressed concern about public parking that would be lost. A local realtor voiced support for the project and stated that there isn t an issue of parking in the City of Highland Park. She also indicated that housing for people sixty and older is difficult to find in Highland Park.

2 Canel Companies. Scott Canel presented a proposal for a two-phase mixed-use development. The first phase would include a retail/restaurant space, an urban garden outdoor space, an underground garage as well as a surface parking lot at the rear of the property. The second phase would include a five-story office building. The development would include a roof top garden on the proposed retail/restaurant building and a 6,500 square foot green space in the center portion of the parcel between the retail building along Central Ave. and office building behind it. The underground parking garage has 35 spaces and 8 covered surface spaces that would be accessed from the alley; some of the underground spaces would be reserved for the tenants of the proposed office building. The proposed project may feature a LYFE Kitchen restaurant and a retail store. The developer intends to own and operate the restaurant. He explained that the store and the restaurant will generate sales tax. In addition, they will operate as a social service organization to provide vocational training and employment opportunities to developmentally disabled persons in the community. David Woodhouse of Woodhouse Tinucci Architects provided information about the area and architectural components of the proposed development. The five story office building proposed would be occupied, in part, by Canel Companies. Mayor Rotering asked if there was any opportunity to preserve the façade of the theater in the plan. o Mr. Canel explained that the current development plan doesn t preserve the façade of theater but they are not committed to a specific design and are happy to work with the City on this. There were no comments or questions from the public regarding the Canel Companies proposal.

3 Dayan, 500 Central Ave. Medwin Dayan provided an introduction of the key persons involved in the proposed specialty food market development. He provided examples of successful market places around the United States. The proposed Theater Market would consist of approximately 10,000 square feet and house a variety of specialty food vendors. He explained that there is growing demand for fresh local foods. Secondarily, the market will also provide education and community outreach. Gary Schumaker explained that the location in a pedestrian oriented district is important. The project proposes an adaptive reuse of the building and will maintain the façade and incorporate some of the interior of the building into the proposed marketplace. They are requesting an easement for a portion of the west side of the parking lot to create a summer outdoor market space. The intention is to only purchase the building and the land the building sits on. Initial floor plans were present depicting eight tenant spaces that will be leased to vendors along with multiple kiosks. There will also be office space on the second floor to provide support to the market place. A discussion was had about the viability of a market concept within Highland Park 1, the hours of operation, how the market will be operated, and the impact of competition on other grocery retailers in the market area. o Medwin Dayan stated that Sunset Foods would not have an issue surviving with the market. A member of the public voiced concern about increased vehicular traffic related to the market. A resident, commented that the project provides increased foot traffic and is positive for Highland Park. She voiced support for the project and was happy that this project would preserve the theater façade. 1 Which has a substantially smaller population than the examples presented.

4 Geraci and Katz & Associates. Ray Geraci introduced himself and his partner David Katz as well as their architectural firm and hotel/theater consultant. He provided his background with the City and his involvement in past developments in the City as former Mayor. He explained that the project provides an opportunity for new revenue to the City through the hotel, theater and condominium proposed. He indicated that the project would have ground floor retail, a restaurant and a 500 seat theater in addition to a 95 room hotel with a seat banquet room, and 27 luxury residential condominiums. The development s 194 parking spaces would be provided in a 2 level underground garage. He noted that they are requesting relief on the number of floors for the building and indicated that an eight story mixed-use development will not have a negative impact on the community. He explained that Northbrook and Deerfield have permitted eight story buildings and referred to the height of several existing buildings and other structures in Highland Park including the Water Tower. Mayor Rotering asked who would operate the hotel and theater. o David Katz explained that the developer would not operate the hotel and that they are currently in conversation with hotel operators. o He also explained that they are asking for the affordable housing component to be waived. Mayor Rotering asked if a market analysis was performed. o David Mandigo explained that the developers have reviewed hotels in the market and believed the proposed hotel would work. There has not been a specific market study for the proposal. The Committee discussed the density and height of the proposed development and discussed the proposed mix of uses. A resident questioned the size of the theater and noted that acoustic requirements vary for film, musical and live theater performances. Concerns were voiced about the building bulk and height, and traffic impact. Mayor Rotering explained that all projects will be vetted through the Plan Commission and will require Public Hearings. All aspects will be considered and reviewed with the chosen project. City Manager Neukirch asked a question on behalf of an audience member about whether or not the City will need additional fire equipment for an eight story building. o She explained that the City does not need additional equipment as there is an existing eight story building at Fort Sheridan. Revised Proposal On October 5 th, 2015, the City received a revised proposal from Geraci and Katz that removed the theater and reduced the number of stoires from eight to six. Their revised proposal is for a six story building comprised of a four story boutique luxury hotel with rooms with a seat banquet space. The fifth and sixth floors of the building would consist of residential

5 condominiums. Parking would be provided in an underground garage containing 184 parking spaces and a surface lot with 24 spaces of which 82 would be public. There would be a pedestrian walkway to the alley that would provide access from Central Avenue to Park Avenue on the east side of the property. The developer asserts that the development is primarily commercial and therefore it should not be subject to the affordable housing requirements 2. However, they have offered $100,000 toward the City s affordable housing program. Geraci and Katz noted the following benefits of a hotel/condo development: Increased sales tax due to spending by conference attendees, hotel guests, full and part time employees, visitors and travelers. Increases sales tax due to event space rentals, banquet food and dining room purchases. Increased spending will support local businesses, reduce occupancy rates, and ultimately increase property values which will increase property tax revenue. 2 Please note that this project would be subject to the requirements of the City s Inclusionary Housing Code and therefore would be required to provide affordable housing units or a cash payment in-lieu.

6 Morningside Group. David Strosberg, President and founder of Morningside Group, introduced his project team and provided an overview of Morningside s past projects, and a summary of their residential development proposal for the Theater and Ori South Lot. Architect Lucien Lagrange detailed the architectural design elements of the proposed development. He explained that the building is six stories with a roof top garden on the second level and stepbacks on the fifth and six stories of building which will have a mansard roof. Mary Ellen Martin of Morningside Group explained that the proposed development will be high end residential, and would generate over $1 million of property taxes annually. The building would have 107 proposed parking spaces spaces per unit. She explained that Morningside Group is not seeking any subsidies to purchase the property and will pay all applicable impact fees related to the development. The development proposes 59 residential units with the average unit size of 2,000 square feet and a public art garden along Central Avenue. She explained that the proposal includes a cash payment in lieu of affordable housing in the amount of $125,000 per unit required. The Committee discussed the details of the proposed condominiums including price per unit and parking. A neighborhood coordinator for the immediate area bounded by Central, Park, Linden, and Sheridan Road reported resident feedback. o He indicated that the residents believe that the theater and lot belong to the neighborhood commons. The selected development should enhance the neighborhood, and it should not be high-end real estate. Another resident expressed that Highland Park did not need more luxury residences. A resident commented in support of the proposal that if a group wants something to remain as an open lot, they have a right to purchase that property. He felt that Highland Park lacked empty nester inventory and can use more development. He commented that he is unsure why people are afraid to consider upscale housing. He explained that the City does not need more retail space, but more residential development in the area would be a tremendous gain for the City as it would support the existing businesses.

7 Alternative Uses of the Theater Lot & Other Public Comment Mayor Rotering indicated that there are two other options for use of the lot which haven t been presented. One is to demolish the building to create a park on the lot. The other is to demolish the building and construct additional public parking. City Manager Neukirch explained that the costs to fully demolish the building would be $600,000 to $850,000 and the costs for a partial demo in which the façade is preserved is $500,000 to $800,000. The cost estimate to resurface 12,000 square feet would be $360,000. The Cost estimate for top soil and seed for the lot is $30,000. Mayor Rotering read the public comment cards and stated that there were a number of questions regarding the financial offers for the property. o City Manager Neukirch explained that the City is not providing financial offers at this time as it could impede the City s ability to negotiate with a developer. Neighborhood leader for an area adjacent to property inquired about how the proposals integrated with the existing neighborhood. He voiced support for the market place because it serves as a gathering place and it best facilitates the neighbor to neighbor interaction. A resident stated that the residential proposals are the best proposals for community as there is a dire need for residential housing inventory. He felt that the market place proposal suits larger cities than Highland Park. He voiced concerns with the proposed hotel and theater parking and building height. Mayor Rotering explained that the proposals are for either the theater building alone or a combination of the theater and parking lot. She indicated that she anticipates that some of the items inside the theater may be auctioned at some point. A resident voiced that trying to save the theater is a waste of the public s time and money.

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