City council: Redevelopment agreement with new owners of Salt 251 approved
Engineering contract for Flagg Road and 20th Street improvements approved
ROCHELLE — At its meeting Monday, the Rochelle City Council unanimously approved a resolution authorizing a redevelopment agreement with Shane Erdman and Jim Withers, the new owners of Salt 251.
Erdman and Withers requested a short-term redevelopment agreement with the city to replace the roof at Salt 251. They recently closed on the property in the first week of May. The work is estimated to cost $68,000-90,000.
The agreement includes reimbursement of up to $40,000 for tax increment financing (TIF)-eligible expenses towards the replacement of the roof. Upon successful completion of the project, including showing proof of all paid invoices and being current on this year’s property tax bill, the city will reimburse $30,000 by Dec. 30, 2023. The city will reimburse $5,000 by Dec. 30, 2024 after proof of property tax payments are made, and will reimburse $5,000 by Dec. 30, 2025 after proof of property tax payments are made. If the property closes before the agreement is completed, the developer shall forfeit any future payments. There is a potential for an insurance claim from the damages related to the late March storm. Any proceeds received by the developer will come off the redevelopment agreement.
“TIF is property tax based, so we're just reimbursing them their property taxes that they pay into the TIF,” City Manager Jeff Fiegenschuh said. “In my meetings with these gentlemen, I think it's a good agreement. They're already starting to work on the facility, and I believe there's only good things to come."
As with the previous ownership, the city will retain the first right of refusal to purchase the facility upon a future sale. Fairways Golf Course is owned jointly by the city and the Flagg-Rochelle Community Park District.
Erdman and Withers attended Monday’s meeting and spoke about working with the city.
“We just wanted to let you all know that we're excited to take ownership of it locally and we know it's a good partnership with the city and park district,” Erdman said. “We're excited to work with the city and get things moving along a little bit better there.”
The council unanimously approved a resolution authorizing the retention of engineering firm Willett, Hofmann & Associates for professional services related to improvements at the Flagg Road and 20th Street intersection for $117,797.
An intergovernmental agreement with Ogle County, which maintains Flagg Road, was approved by the council in early 2022 and provides for collaboration and cost sharing of various phases of engineering and construction of changes to the multi-year intersection improvement project. With a traffic analysis and an intersection design study now complete and submitted to the Illinois Department of Transportation, the engineering agreement approved Monday will allow the preliminary engineering design phase two to begin.
Willett, Hofmann & Associates performed a traffic analysis and the IDS and has submitted a proposal for an engineering services agreement phase two construction plan and plans to have it completed by late 2023.
Estimates and cost breakdown for Ogle County and the city will be defined in the scope of the project plans and documents. Right of way and/or easement acquisition is expected for the project to be constructed.
“The city's portion of this is going to be larger because we're doing a resurfacing of 20th Street north of Flagg Road as well, and of course the full reconstruction of 20th Street to Westgate on the south side of Flagg Road,” City Engineer Sam Tesreau said. “There will be additional dedicated right-hand turn lanes and a full signalized intersection. It's temporarily signalized today. There will be provisions for pedestrian crossings as well.”
The council unanimously approved a $75,960 purchase of cobra head street lights. Rochelle Municipal Utilities currently has around 2,300 cobra head street lights deployed with just over 1,000 converted to LED. A total of 360 street lights, a year’s worth, will be purchased for 2023 to continue replacing deteriorating infrastructure.
The council also unanimously approved a $33,024 purchase of electric meters for RMU.
Also approved unanimously Monday was the $96,000 purchase of 40 cyclone street light head and arms. In March 2021, council approved the purchase of 40 cyclone fixtures with arm and pole for the Illinois Route 38 lighting project. The distributor recently approached RMU and stated the order was produced twice and offered to sell them to the city at a “significantly-discounted” rate. The street lighting equipment will be used for future projects.
Finally, the council unanimously approved the $112,966 purchase of a new John Deere 324 compact loader for its solid waste and street departments. The new compact wheel loader will replace a 1998 CAT 928G front end wheel loader, and a 2007 Case 580M loader backhoe. The Cat 928G will move to the RMU water reclamation department and the Case 580M loader backhoe will be traded-in to offset the purchase price of the new compact wheel loader.
The distributor has loaders available for immediate purchase, and the new loader will be used for a variety of city public works projects.
Swearing-in ceremonies were held at the meeting for City Clerk Rose Hueramo and Deputy Clerks Brittany Olszewski and Rocio Belmonte.
Bearrows read a proclamation making May 21-27 Public Works Week in the city and presented it to Public Works Director Tim Isley and City Engineer Sam Tesreau. He also read a proclamation making May 14-20 Police Week in the city and presented it to Rochelle Police Department Chief Pete Pavia and RPD officers.