Grundy Reporter

City of Highland Industrial Development Commission met June 5.

Here is the agenda provided by the commission:

Call to Order:

The June 5, 2024, meeting of the Industrial Development Commission was called to order at 12:01 PM by Vice-Chairman Diane Korte-Lindsey. The Pledge of Allegiance to the Flag was recited.

Roll Call:

Members present: Vice-Chairman Diane Korte-Lindsey, Josh Kloss; Marshall Rinderer; Kurt Vonder Haar; and Ex-officio member, Highland Chamber of Commerce Executive Director Hillarie Holzinger.

Members absent: Chairman Jim Meridith;

Also present: Director of Economic Development Mallord Hubbard; University of Illinois Intern Easton Rosen; Chris Flake, and Recording Secretary Lana Hediger.

Approval of Minutes:

Josh Kloss made a motion to approve the minutes of the May 1, 2024, Regular Session meeting of the Industrial Development Commission; seconded by Marshall Rinderer. All members present voted aye; none voted no; the motion carried.

Reports:

Treasurer’s Report – Prepared by Director of Finance Reanna Ohren Mallord Hubbard reviewed the report that showed the balance in the IDC checking account at First Mid Bank & Trust as of 05/01/2024, as $27,020.11. There were no transactions during the past month. The balance in the checking account as of 06/05/2024 was $27,020.11. The checking account balance combined with the $25,000 CD also at First Mid Bank & Trust, which matures in November 2024, makes the total assets of the IDC $52,020.11.

Updates on Developments and other City Projects – Mallord Hubbard Mallord reported that all the employees have moved back into city hall. Work on the council chambers is to begin any day, with completion expected in late July or August.

The City Council approved the Ordinances for the creation of TIF 3, at their meeting on June 3rd. We are working through the steps to notify Madison County and the State of Illinois to finalize the process. Mallord has had conversations with the owner of the property on US Hwy 40. There are site plan changes being made. They will meet again in July to discuss.

Mallord reported that Angela Kim announced at the Rotary meeting that she is selling the property located at 821 Poplar Street. It may soon be a Kasabi Restaurant. They have other hibatchi style restaurants in the St. Louis area. Diane noted that there was a restaurant at that same location back in the 1970’s, called The Brass Lantern.

Meetings have been held with Sunny Tut, developer of the future truck stop at Veterans Honor Parkway and St. Rose Road. He is shifting his focus from other projects to his Highland development. They are making preparations to apply for the Preliminary Plat approval. He won’t be breaking ground until next year.

The second phase of Flax Drive has begun.

Both the House and Senate have approved the repeal of the Grocery Tax, effective January 1, 2026. At the same time, they have given municipalities the ability to institute the Grocery Tax at the local level. The City Council will address this issue at the appropriate time.

Update on Highland Communication Services – Mallord Hubbard

Mallord had no update.

Update on Workforce Development Initiatives – Mallord Hubbard

Mallord had no update.

Unfinished Business:

Approval of Sponsorship Contribution to Collinsville, Triad, Maryville, & Highland CEO Program for 2024-2025

Mallord requested that the IDC support the CEO program again this year and reminded them that they donated $1,000 last year. His suggestion was that the IDC pledge a three year commitment for either $500 or $1,000/year, noting that over half of the students in the program are Highland High School students.

After some discussion where it was noted that the IDC’s CD earns about $1,000/year, a motion was made by Josh Kloss to make a $1,000 per year donation for each of the next three years to the 2024-2025 CEO Program; seconded by Marshall Rinderer. All members voted aye; the motion carried.

New Business:

Recommendation of Development Agreement with Diversified Services for property located at 904 Beech Street.

The board reviewed the details of the proposed Development Agreement with Diversified Services for property located at 904 Beech Street, which included up to $10,000 reimbursable based on actual costs of items related to their building permit, plumbing permit, electrical permit, certificate of occupancy, site plan review, exterior plan review, electric connection fees, water connection fees, and sewer connection fees. Mallord noted that the location is actually in a TIF district, but that due to it being new construction, the project is not eligible for TIF funds. If approved, the incentives, which are not likely to amount to more than $10,000, for this project, will be paid from the City’s Economic Development fund.

Marshall Rinderer made a motion to recommend approval of the proposed economic development incentives for Diversified Services for 904 Beech Street; seconded by Josh Kloss. All members voted aye; none voted no; the motion carried.

Mallord added that this would not generate much in taxable sales, because the nature of the business is services. However, he estimated an annual property tax bill of $7,300; opposed to what is currently collected as a vacant lot.

Election of Treasurer for Industrial Development Commission

Mallord informed the members that on inspection of the language in the ordinance that created the IDC, it was discovered that the IDC funds should be deposited with the City Treasurer. It was recommended that the Director of Finance, who acts as the agent for the elected City Treasurer, should be in control of the funds, however, only the IDC members should have the authorization to designate how the funds are spent or invested. The members agreed. No treasurer will be chosen from among the members. Mallord, shared that he had this same discussion with Chairman Meridith and was given permission to share his concurrence with the members.

Diane shared the housing market reports for April with the members. Compared to the month of April last year, there was more inventory. New listings are up 14% based upon a particular property owner divesting his holdings in the area. The median sale price is continuing to go up, rising from $160,500 to $246,500 over the last year. Diane noted that 6-7% interest rates are not scaring people off.

Next Meeting:

The next meeting of the Industrial Development Commission is scheduled for Wednesday, July 3, 2024.

Adjournment

Marshall Rinderer made a motion to adjourn; seconded by Kurt Vonder Haar. All members voted aye. The motion carried and the meeting adjourned at 12:30 PM.

https://docs.google.com/document/d/1RQANLGUTiaSBWWxxJnl0NW4tIefAjjdFDLLaXSy9ecs/edit