CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass the ordinance proposing and setting a public hearing for the establishment of Special Service Area No. 30 for streetscape improvements on portions of blocks 429 and 430 of the downtown area in the City of Naperville
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DEPARTMENT: Transportation, Engineering and Development
SUBMITTED BY: William J. Novack, Director of TED/City Engineer
BOARD/COMMISSION REVIEW:
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BACKGROUND:
Streetscape improvements have been installed in most of downtown Naperville since the early 1980’s. The two main methods of implementing the streetscape improvements have been through the establishment of special service areas on a block by block basis, or as part of redevelopment of a parcel of land. The downtown streetscape improvements are maintained by the City of Naperville’s Department of Public Works (DPW) with one-third of the costs being funded by Special Service Area No. 26.
DPW has done an outstanding job of maintaining these improvements over the decades, but many of them are reaching the end of their useful life and need replacement. City staff has been working with the Downtown Advisory Committee for the last two years to update the City’s streetscape standards. DAC was working on a long-term plan to replace all the aged streetscape in the downtown and trying to figure out a method to cost share on the improvements between the City and the property owners.
DISCUSSION:
Steve Rubin owns several properties in downtown Naperville. He and his neighbors along Main Street desire to replace their streetscape improvements with the new standard in 2019, rather than wait for a downtown-wide replacement plan. They would like to improve the streetscape and parking on the south side of Jefferson Avenue between Webster and Main along with both sides of Main Street between Jefferson and Jackson. The improvements would also include small portions of Webster and Jackson adjacent to the previously noted areas.
Mr. Rubin has spoken with several of his neighboring property owners and they are supportive of establishing a special service area to finance these improvements. The property owners would have the improvements designed, contract for the work, and then seek reimbursement from the City. The City would have to borrow funds to pay for the improvements, but the City would be paid back in full, complete with interest, over the fifteen-year period of the special service area.
Because of the realignment of the parking, switching the parking on the east side of Main Street and the south side of Jefferson from angled to parallel, the street will need to be repaved as part of the improvements. We have adjusted the 2019 street maintenance improvement program (MIP) to include these improvements, so the City funds will come from the MIP.
Our initial discussion with Mr. Rubin has been that the City will fund the street, parking and curb with the property owners paying for everything from the curb to the buildings. For the entire project, it would result in the City paying $387,000 and the property owners paying $2,219,000.
Mr. Rubin has received comments from some of the property owners relative to the City’s participation. Some have argued that the City should at least pay for what a regular sidewalk would have cost. In this case, that would shift $196,000 from the property owners to the City. Staff does see some merit with that discussion, having been told that the original downtown streetscape SSA in the 1980’s was split in a similar manner. This decision needs to be made before or at the public hearing in February.
FISCAL IMPACT:
The City’s share of the project cost, ranging from $387,000 to possibly $583,000 will be funded through the annual street MIP. The City will have to borrow $2.22 million to fund the improvements on behalf of the property owners, but the full amount plus interest will be repaid to the City over the fifteen-year term of the special service area.