North Cook News

Village of Northbrook Board of Trustees met May 29

Here are the minutes provided by the board:

1. ROLL CALL 

Village Board of Trustees 

Attendee Name Title Status 

Kathryn Ciesla Village President Present 

Robert Israel Trustee Present 

Heather Ross Trustee Present 

Daniel Pepoon Trustee Present 

Johannah Hebl Trustee Present 

Joy Ebhomielen Trustee Present 

Michelle Kohler Trustee Present 

Economic Strategy Commission 

Marci Carl Chairperson Absent 

James Karagianis Commissioner Present 

Patrick Keefe Commissioner Present 

Katie McKillip-Von Feldt Commissioner Present 

Rob Weil Chair Pro-tem Present 

Matt Cassidy Commissioner Present 

Michael Nortman Commissioner Absent 

Adam Firsel Commissioner Absent 

2. PLEDGE OF ALLEGIANCE 

3. PUBLIC COMMENT – None  

4. PRESIDENT'S REPORT 

A. Discuss the recommendations of the Economic Strategy Commission (ESC) related to downtown development 

President Ciesla opened the meeting at 6 p.m. with a Board and ESC roll call. A quorum was present for both. She then asked for introductions. The Village Board of Trustees and Economic Strategy Commissioners (ESC) each spoke for a few minutes regarding their background, qualifications, and hopefulness for the better good of the Village. Comments for the ESC membership included the; “we want to give back to the community, we want to use our talents to improve the downtown, we want to see action taken in the downtown area, the the downtown area could be better utilized, we would like to build up retail in the downtown, we would like more event planning”.  

Tonight’s Special Meeting was held in response to an ESC memo dated April 26, 2023, that presented ten recommendations for consideration for the downtown area and potential redevelopment of the Meadow Shopping Plaza at 1901-1975 Cherry Lane and property at 1200 Meadow Road, both owned by Heitman Investment Co. A recommendation response to the ESC was prepared, delivered and was to be discussed at tonight’s meeting. President Ciesla stated that the discussion topics would not be in any particular order and that she  wanted to jump around.  

President Ciesla began with a report on changes to Village revenue and their potential impact. 1) Northbrook Court previously brought in approximately $3 million in sales tax revenue but until it comes online, revenue continues to decrease. It’s hoped that the new anticipated Tesla dealership will make up a significant portion of that amount; 2) Illinois legislature voted to eliminate the Grocery Tax effective January 2026. Municipalities will no longer receive revenue from the grocery stores. The Village anticipates it will lose approximately $1.8 million. Municipalities will be able to put in place their own grocery tax but it is a wait and see situation; 3) Fire Station #11 was built in the 1950s. It does not have adequate quarters for women. The Village is in desperate need of a new Fire Station; 4) The Police Station was built in the 1960s. It is also obsolete; 5) The Public Works Garage behind the Village Hall is not big enough for the large equipment that needs maintenance. The Village has done the preliminary studies and is currently in the land acquisition phase. The price tag is approximately $108 million for those facilities, absent the land. Taking all of this into consideration, however, President Ciesla is in agreement that the downtown area needs attention. 

The Board created a Tax Increment Financing (TIF) for Northbrook Court in partnership with Brookfield Properties to redo the mall area. President Ciesla stated that a number of the recommended suggestions, ten in total, for downtown redevelopment that were submitted by the Economic Strategy Commission (ESC) are spot on.  

A discussion began on Recommendation #4, (economic consideration of a Food and Beverage Tax). If so approved, a 1% tax has to be enacted on January 1, 2025 and would need to be voted on by the Board in September 2024. The Board could take the roughly anticipated $1.1-1.2 million in revenue per year generated from the tax and tackle  Recommendation #7 (hire an urban design firm, which the ESC could vet, for downtown place making) and Recommendation #9 (establish and financially support a downtown business association infrastructure). This would allow for an outside group to promote and put on events. Recommendation #10 (hire a consultant for a Special Service Area for a TIF) would allow an urban design firm to weigh in on possibilities for the Heitman site.  

Village Manager Pavlicek spoke of the differences between a regional shopping mall with tenants and a central business district. The mall owner controls everything. In a central business district, there are multiple property owners. It can often be difficult to get everyone onboard to participate.  

Village Manager Pavlicek stated that many successful municipalities, such as Wheaton, and LaGrange, have outside help, a not-for-profit organization with a dedicated funding stream for having staff. The staff do marketing, arrange activities etc. New partnerships are created.  

Trustee Ebhomielen asked if the Chamber of Commerce would coordinate working with the different retailers located within the Village. Village Manager Pavlicek stated that most Chambers of Commerce do not traditionally become involved.  

President Ciesla confirmed that the Village staff is currently unable to take on more event planning. She asked if an outside group would contract out for these events. Village Manager Pavlicek will pull out the different agreements that some of the municipalities have with the independent organizations. She stated that the Village has not yet spoken with the downtown area businesses. If the Village is committed to do something to increase foot traffic in the downtown, business owners and operators need to be on board. 

Trustee Ebhomielen stated that if the goal is to increase the foot traffic, we need to get more residents.  

Trustee Kohler stated that if a Food and Beverage tax would be levied on the whole Village, the downtown should not get it all. 

Trustee Pepoon asked about incentives to work with the Park District.  

President Ciesla stated that if a food and beverage tax was implemented beginning January 1, 2025, part of the revenue would go to an urban design firm (Recommendation #7). Northbrook is in the minority of not having a food and beverage tax. Glencoe, Buffalo Grove, Deerfield and Wheeling all have a 1% tax; Skokie and Schaumburg have a 2% tax.

Trustee Ross believes the only unified opinion of Village residents is that the downtown needs refurbishing. 

Village Manager Pavlicek stated that the Heitman property is actively for sale. ESC Recommendation #1 (Village ownership of the Heitman property) and ESC Recommendation #2 (the need for high residential density in the downtown) were brought in for discussion. It is  

reported that Mr. Heitman is not extending leases for some tenants. He is working on remediation for the dry cleaner. There have been multiple developers come in over the past three years. Village Manager Pavlicek believes the market will come forward with a residential development and a developer will ask for at least five stories. At present time, the acquisition of the Heitman property is not ready for Board consideration. 

Chair pro-tem Weil believes that Mr. Heitman has to be brought into the circle of development for downtown. He advocates buying the property or negotiating a future purchase option for a period of time.  

Commissioner Karagianis stated if a firm was hired to assess the purchase by the Village (Recommendation #1), they would need to have expertise in valuation and technique to buy  the property. 

President Ciesla stated that if the Village had a TIF or SSA in place, (Recommendation #10) the Village could give someone money to develop the Heitman property. Trustee Israel asked why the Village would purchase the Heitman property. He would like to hire a consultant to provide information on what would work well in the downtown. Trustee Kohler asked if the Village can support both the downtown and Northbrook Court. Commissioner Karagianis responded to Trustee Kohler that if the Village does nothing to support and change the downtown, it will be lost.  

Trustee Hebl stated that the Village Green baseball field is empty most of the time and is underutilized. She sees the need for the Park District to fill up the park with regular events. She agrees with a 1% Food and Beverage tax but has mixed feeling on a group to put on events. She believes we need more density first.  

President Ciesla stated that tonight’s conversation has given the Board a lot to think about regarding the Heitman property. The Board may further discuss the topic in closed session.  

President Ciesla requests that staff prepare the paperwork for a Food and Beverage Tax, provide a timeline and a plan to use the revenue, and hire a design firm to address the downtown and to explore downtown not-for-profits. She would like to visit some community models, visit various Chamber of Commerce and independent organizations and see how it would work for Northbrook. President Ciesla is not sure about the business district or SSA but a consultant needs to be hired to study a TIF. Village Manager Pavlicek stated that it takes about six months to implement and an ordinance is needed. 

Village Manager Pavlicek reported that the trend now is for restaurants to ask for economic incentives to come into a community. Commissioner Keefe answered that the Village needs to do something for the existing restaurants in town before offering incentives to new restaurants.  

Village Manager Pavlicek stated that the Village no longer has a dedicated economic development professional. For the ESC to be an outward agent of the Village, it needs to have the backing of the Board. Village Manager Pavlicek believes density is the financial incentive to the restaurant base.  

Trustee Hebl believes a TIF should be used for economic incentives for restaurants and wants to help area existing restaurants.  

Trustees Kohler and Ebhomielen both like mixed-use areas and would like to test out a TIF idea. Trustee Kohler is nervous about tying up money in a property. She likes the flex testing.  

Trustee Israel stated that the Village is doing a beautification façade improvement along Shermer Road to facilitate outdoor dining and thinks that it is now time for the owners to step up.  

Village Manager Pavlicek stated that if grant paperwork is too cumbersome, small businesses will not bother. Staff will come back with base options for consideration with prioritization and goals.  

Board recommendations are to move forward with the Food and Beverage Tax. The Board wants to hire an urban design firm with help from the ESC to explore the downtown and study different revenue sources for the downtown. Trustee Kohler wants to add surveying the  existing businesses downtown and see what they really need. She asked if they need capital improvements more than foot traffic or parking.  

Village Manager Pavlicek asked if the Board was interested in a joint meeting with the Plan Commission, in a Zoning Code conversation, Recommendation #3 (reimagining parking) to talk about parking downtown with the possibility of a structure. A representative could be  present to add to the conversation. 

The FY 2025/26 Budget is subject to the actual adoption of the tax. FY 2026 begins in May 2025. There needs to be a conversation about economic incentives for two restaurants. Staff should prioritize to provide more information on which economic incentives will come in and which economic incentives are already here.  

With respect to Recommendations #1 and #2 (Heitman Property), President Ciesla stated that those conversations would be tabled for now.  

Recommendation #5 was not discussed. 

Recommendation #6 will be talked about in August with the Zoning Code.  Recommendation #8 relates to the Zoning Code.  

President Ciesla stated that 50% of the suggestions from the ESC are in motion. 

5. REMARKS FOR THE GOOD OF THE ORDER – None  

6. ADJOURN 

MOTION: ADJOURN ECONOMIC STRATEGY COMMISSION AT 7:24 P.M. [5 – 0] MOVER: James Karagianis, Commissioner 

SECONDER: Rob Weil, Chair Pro-tem 

AYES: Karagianis, Keefe, McKillip-Von Feldt, Weil, Cassidy 

NAYES: None 

ABSENT: Marci Carl, Chairperson, Michael Nortman & Adam Firsel Commissioners

MOTION: ADJOURN VILLAGE BOARD OF TRUSTEES AT 7:24 P.M. [6 – 0] MOVER: Robert Israel, Trustee 

SECONDER: Heather Ross, Trustee 

AYES: Israel, Ross, Pepoon, Hebl, Ebhomielen, Kohler 

NAYES: None 

ABSTAIN: Kathryn Ciesla, President  

ABSENT: None

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