Village of La Grange Board of Trustees met Sept. 27

By Angelica Saylo Pilo

Oct 26, 2021

Village of La Grange Board of Trustees met Sept. 27.

Here are the minutes provided by the board:

1. CALL TO ORDER, ROLL CALL, PLEDGE OF ALLEGIANCE

The Board of Trustees of the Village of La Grange meeting was called to order at 7:30 p.m. by Village President Mark Kuchler. On roll call, as read by Village Clerk Paul Saladino, the following were:

PRESENT: Trustees Augustine, Gale, Kotynek, McGee, O'Brien, and Peterson with President Kuchler presiding.

ABSENT: None

OTHERS: Village Manager Andrianna Peterson Village Attorney Mark Burkland Public Works Director Richard Colby Assistant Public Works Director Russell Davenport Community Development Director Charity Jones Finance Director Lou Cipparrone Interim Police Chief Jason Cates Fire Chief Terrence Vavra

President Kuchler welcomed the Village Board and thanked Trustees for attending the meeting which has been modified to adjust for social distancing. He reminded everyone to stay six feet apart and wear a mask while in the Village Hall regardless of vaccination status. The video of the meeting was broadcasted on cable television, YouTube, and will also be available on Facebook and posted to the Village website.

President Kuchler asked Scout Ross Dziallo to lead the audience in reciting the Pledge of Allegiance. President Kuchler noted that Ross Dziallo is a Senior at Lyons Township High School who recently partnered with the La Grange Garden Club to complete an Eagle Scout beautification project at the corner of Burlington and Brainard Avenues. He planted a butterfly garden for all residents to enjoy. President Kuchler thanked Ross for his efforts and the Garden Club for their assistance and service to our community.

2. PRESIDENT'S REPORT

President Kuchler noted that effective Monday, August 31, Governor Pritzker announced an indoor face covering mandate, regardless of vaccination status. For more information regarding COVID-19, please visit the Village website. Health professionals continue to encourage the community to get vaccinated. To find a vaccination center, visit www.vaccines.gov.

President Kuchler announced that on Saturday, June 26, the Village experienced a significant storm event that resulted in flooding for many residents. At the last several Village Board meetings, residents that incurred damages and losses have provided comment. The Village has identified projects to help reduce flooding, each of which has its own set of challenges, costs and benefits. La Grange cannot undertake significant stormwater management projects alone as we need regional partners and outlets for the water. Therefore, the Village continues to work closely with our elected leaders and partner agencies like the Metropolitan Water Reclamation District (MWRD), Illinois Department of Transportation (IDOT) and Cook County, to implement regional solutions that further our identified and proposed projects.

President Kuchler noted that over the last several weeks and months, the Village has continued its efforts to identify funding for flood mitigation projects through legislative, legal and engineering initiatives. In addition to the 50th Street Relief Sewer Project, he has met with a number of elected leaders to discuss flood control initiatives and has been providing regular updates of the Village's progress with the initiatives at each meeting and on the Village's website. He noted that he recently provided comments at the Cook County Board Meeting requesting funding for the Village's flood mitigation efforts. He stressed the need for assistance in addressing flooding in La Grange as it is a regional problem that must be addressed beyond the local level. President Kuchler explained that the Village is also planning to apply for two grant programs by the end of this month - the FEMA BRIC program (Building Resilient Infrastructure and Communities) and the FEMA HMP program (Hazard Mitigation Planning). We will continue to update the community on our efforts and progress.

A. Appointment – Richard Colby, Director of Public Works

President Kuchler announced that he was pleased to appoint Richard Colby of La Grange as the next Director of Public Works. Rick possesses outstanding professional qualifications, has demonstrated leadership, and exhibits strong communication skills. He has over 15 years of experience in engineering, facilities management, project management and public works both as a military officer and as the Director of Facilities for a large healthcare campus (Hines VA Hospital). Rick is a licensed, registered, Civil Engineer (PE) with a Masters of Business Administration (MBA) and a Master's of Science in Civil Engineering, both from the University of Illinois. He also has a Bachelor of Science degree in Civil Engineering from the U.S. Coast Guard Academy.

Trustee Kotynek made a motion to approve the appointment of Richard Colby as Director of Public Works, seconded by Trustee McGee. Motion carried on a voice vote.

President Kuchler invited Clerk Saladino to administer the Oath of Office to Director of Public Works Richard Colby.

B. Informational Workshop – La Grange Theater

President Kuchler provided background on the La Grange Theater and noted both Chris Johnson from Classic Cinemas as well as Theater owners John Rot and Dan Chopp were in attendance to present and answer questions.

He noted that the Village and Theater had entered into an agreement twelve years ago and as long as the business remains a theater, there is no impact to the agreement. The Theater has provided a proposal whereby they would provide a revenue sharing component in exchange for the Village removing the $1.0 million financial considerations included in the current agreement. President Kuchler noted that the Village appreciates the Theater and their investment. He also warmly welcomed Classic Cinemas and said that the Village would benefit from their operating in La Grange. He invited Chris Johnson of Classic Cinemas to begin the presentation.

At the conclusion of the presentation, President Kuchler invited questions from the Village Board

Trustee Gale inquired if the marquee would be comparable to the original design. Mr. Johnson advised that the marquee is proposed to be updated to replace the attraction boards with electronic versions. He hoped that at some point the original vertical sign could be returned to its previous configuration.

President Kuchler thanked Mr. Johnson and invited current theater owners John Rot and Dan Chopp to comment. Mr. Rot noted that the Theater is a break-even operation, that the sub-first run movie model is no longer viable, and that the Theater needs an investment to make it first-run. He believes the proposal is a win for everyone.

President Kuchler thanked Mr. Rot for his comments and noted that both the Village Board and the community want Classic Cinemas to come to La Grange and for the Theater to remain in operation. He said that he expected that ticket sales would increase after the investment as they did in North Riverside. He asked for additional details and protections for the Village.

Mr. Johnson stated that Classic Cinemas was ready to commit for the long term and invest over a million dollars into the Theater. They view the La Grange Theater as a great opportunity. He also explained that as the theater only has 320 seats, it is smaller in comparison to other theaters owned by Classic Cinemas. He also noted that as part of the community, the revamped theater would not be in competition with the restaurants as they do not intend to serve meals. Instead, they are additive to the community because they have found many patrons will go to both dinner and a movie, thus bringing more revenue to the community.

President Kuchler asked for further clarification if the prospective lease was standard for Classic Cinemas. Mr. Johnson advised that for the four Classic Cinemas locations with leases, the proposed lease for the La Grange Theater is similar.

Trustee Peterson requested further clarification regarding whether their proposal maintains the current façade easement. Mr. Rot advised that further research is needed but expressed his desire to see the façade remain as is as a cornerstone of the community.

Trustee Gale asked for additional clarification regarding ticket prices and how they would change if the theater became a first-run location. Mr. Johnson advised that the matinee tickets would likely be $7 for kids and $9 for adults. He also explained that Classic Cinema's does $5 Tuesday tickets as well as special pricing during the summer months. He noted that it would remain lower than industry standard for first-run theaters. Mr. Rot clarified that before COVID-19, tickets were $6.50, along with specials for students and seniors.

Trustee Kotynek asked Mr. Johnson for further clarification on first-run theaters, breakeven ticket sales, average revenue per ticket sold, and geographical proximity to other Classic Cinemas locations,

Mr. Johnson noted that Classic Cinemas only has first-run theaters at this time. He noted at while the breakeven point would be $180,000 in sales, he believes that there is easily potential to exceed those sales. Mr. Johnson noted that the average attendee generates $11 in revenue on both tickets and concessions. Mr. Johnson noted that movie-goers first look for the movie they want to see and look at location second. He was not concerned about taking business from other Classic Cinemas locations.

Trustee Kotynek asked Mr. Rot if the Theater would fail without the Classic Cinemas lease. Mr. Rot advised that the future would not be bright. Classic Cinemas brings the clout needed with the movie industry to enter first-run status. Classic Cinemas also provides the funds needed to renovate the Theater and bring it to industry standards.

Trustee Kotynek asked Mr. Chopp if the theater deal does not proceed, what is the best use of the location and what is the fair market value of the property. Mr. Chopp noted that it would be difficult to find an occupant to invest the necessary funds and continue the Theater business with its high margin of risk/reward. If the Theater did not stay, the next tenant would be an unknown and likely, it would be demolished and redeveloped into a commercial first floor with residential above.

Trustee Kotynek asked Attorney Burkland for further clarification regarding the non interest-bearing loan. He inquired if the Theater continued to remain a theater, would the loan ever need to be repaid. Attorney Burkland confirmed that if the Theater remained as a theater, the loan did not need to be repaid.

Trustee Kotynek noted that if the Village does move forward with the Theater and utilizes a revenue-sharing format, it may allow for the possibility of recouping the funds initially invested over a period of time.

Trustee Augustine thanked the Theater owners for their time and investment. She noted that she had lived in the Village for a long time and remembers when the downtown struggled before a successful TIF was implemented in 1986. During that time, additional assistance from the Village was provided with the end goal of keeping a local theater. She believes that it was a great investment at the time and noted that Classic Cinemas is now willing to invest in La Grange. She believes that this is a good opportunity.

Trustee Gale thanked the Theater representatives for their time, thanked staff for preparing the report, and the Trustees for hearing this request. He noted that he appreciated the idea of profit sharing. He stated that while the Theater is privately owned, it provides benefits to the Village which are difficult to assign a dollar value to. He asked that when crafting any agreement, that the Village work to keep it simple.

Trustee McGee thanked the Theater representatives for their time and noted that it was a complicated problem. She noted that the Theater has historical significance and explained that she grew up in La Grange and went to the Theater with her parents and her children. She expressed hope that an agreement could be reached to keep the Theater as part of the La Grange community and stressed that families are brought together by entertainment.

President Kuchler requested public comment.

Kristin Gale, 310 Peck Avenue, stated that she was against forgiving the $1-million dollar lien on the Theater and noted that she believed that it was not equitable for the Village to provide relief to a business when their priority should be the residents. She expressed that the $1 million dollars would help in funding stormwater management projects.

Steve Palmer, resident and business owner, noted that with the Theater shut down, business after 10 p.m. disappeared. He also noted that some of the TIF funds were remitted to Cossitt School with no repayment required. Mr. Palmer also noted that before COVID-19, he may not have supported the proposal, but after COVID-19 his perspective has changed. He explained that Mr. Rot has invested greatly in La Grange and Classic Cinemas has a track record of revitalizing classic theaters. Mr. Palmer suggested that the loan be forgiven, or a deal be made to keep the Theater and have it reopened.

Jerry Burjan, 19 N. Catherine, noted that the La Grange downtown faces challenges including retailers leaving, the stressors of COVID-19 and the price of Cook County estate taxes. He noted that these factors contribute to tough competition with other local communities in DuPage County. He believes that a movie theater is necessary to drive business and keep La Grange competitive.

Nancy Cummings, Executive Director of the La Grange Business Association, read a letter from the Board of Directors of the La Grange Business Association expressing support for Classic Cinemas and the vitality of the La Grange Theater.

Nick Gangas, resident and business owner, noted that the La Grange Theater is iconic and it would be devastating to lose. He noted that the Theater is a draw for the community and generates business for La Grange as well as the local businesses. putting additional funds into the Theater is reinvesting in the La Grange community. He also noted that all businesses were affected by COVID-19, but the theater industry was devastated by COVID-19.

Amy Currant, 301 S. Stone, explained she is a new resident of La Grange and noted that the Theater is part of what drew her family to La Grange. She urged the Board to take the steps necessary to keep the theater in La Grange and keep it profitable.

Lara Taylor, 118 S. Park, noted that the loss of the Hinsdale Theater was detrimental to the Village of Hinsdale as an economic driver. She explained that the La Grange Theater has willing owners, a strong investor, and supportive residential community. She requested that the Village Board work with the Theater.

Jeannine McLaughlin, 242 S. Peck, explained that she was present for the original debate regarding the Theater which resulted in a compromise that kept the business as part of the La Grange community. She noted that the Theater has continued to give back to the community and requested that the Village Board work out a compromise to keep the Theater in La Grange for years to come.

Past President Liz Asperger, thanked previous speaker Jeannine McLaughlin for her tireless work to preserve the history of La Grange and for the benefit of the community She stressed that the compromise made 12 years ago was a success as it continued to benefit the community and drive the economy. She explained that while resident tax dollars must be protected, the Theater gives back to the community in many ways. She urged the Board to find a compromise and keep the theater in La Grange.

Past Clerk John Burns read a letter from longtime resident Nancy Kenney, 400 S. Peck Avenue, where she recognized the value of the Theater as a community asset and economic driver. She urged the Board to find a compromise and keep the Theater in La Grange.

Clerk John Burns, explained that the La Grange Theater is a golden asset to the Village of La Grange which presents the opportunity for evolution, opportunity and partnership. He expressed support for analysis of the revenue projections as the Theater is a tax generator and part of the economic fabric that makes up the Village.

Phil Fornaro, resident and business owner, noted that the TIF funds granted to the Theater provided both relief and opportunity. He stated that the proposal is an opportunity for the TIF to give again and urged the Village to forgive the repayment.

Stephanie Posey, 239 S. 6th Avenue, explained that as she grew up in Downers Grove she frequently went to the Tivoli and has seen that Classic Cinemas has evolved with the times. She explained that they provide creative solutions and invest in the local communities in which they locate.

Kevin Mulryan, business owner, expressed his support of both John Rot and Dan Chopp as well as Classic Cinemas.

Dan Spain, business owner, noted that both John Rot and Dan Chopp are assets to the La Grange community. He also explained that Classic Cinemas has the experience and success to revitalize the Theater.

John Pappas, 507 S. 7th Avenue, noted he saw his first movie at the La Grange Theater and expressed his support for the Village to enter into an agreement with the Theater. He noted it is a unique business in La Grange and the La Grange 2020 Task Force suggested that entertainment would continue to be an important part of the health of the downtown.

John Janowski, 28 N. Spring, encouraged the Theater and Village to come to an agreement to keep the theater in La Grange. He suggested raising ticket prices, adding a liquor license, and hosting engaging community events and film festivals as ways to increase economic viability.

Mr. Johnson noted that Classic Cinemas does host various events including seasonal movies, art films and theme nights. He explained that while the first-run movies are what generate the most revenue, fun events make theaters memorable.

President Kuchler thanked everyone for their input and stated that the Village and Theater would work together to discuss options including the possibility of an entertainment tax or revenue sharing arrangement. It is clear that a majority of both La Grange businesses and La Grange residents want to keep the Theater and work with Classic Cinemas. President Kuchler asked Village Attorney Mark Burkland to confirm where any funds received would go. Attorney Burkland stated that the funds would belong to the Village. President Kuchler also asked Attorney Burkland whether or not any special voting measures would be required. Attorney Burkland stated that if the Village Board would be amending the existing agreement, then a normal vote would be required.

3. MANAGER'S REPORT

Village Manager Peterson announced that the Fall Leaf Pick up Prog Monday, October 4, and continue through November 24. Leaves will generally be collected every other week by the Public Works Department from each Village street.

Leaves should be raked to the curb and street gutters as no bags or yard waste stickers are required for this service. For more information, visit the Village's website or contact the Department of Public Works at (708) 579-2328.

Village Manager Peterson announced that September is National Preparedness Month. Information regarding what to do before, during and after a disaster, can be found at the Ready Illinois website or the Village website. Residents are also encouraged to sign up for the Village's emergency notification system on www.lagrangeil.gov.

4. PUBLIC COMMENT REGARDING AGENDA ITEMS

None.

5. CONSENT AGENDA AND VOTE

A. Ordinance – Amending Sections 33.109 and 33.110 of the La Grange Code of Ordinances Regarding the Environmental Quality Commission (EQC)

B. Agreement – Approval of Amended Village Manager Employment Agreement

C. Minutes of the Village of La Grange Board of Trustees Regular Meeting, Monday, September 13, 2021

D. Consolidated Voucher 210927

Trustee Augustine stated that in consideration of her relationship with the Village Prosecutor, she recused herself from each item on the voucher related to the Village Prosecutor.

A motion was made by Trustee Kotynek to approve the Consent Agenda, seconded by Trustee Augustine.

Approved by a roll call vote:

Ayes: Trustees Augustine, Gale, Kotynek, McGee, O'Brien, and Peterson

Nays: None

Absent: None

6. CURRENT BUSINESS

None.

8. TRUSTEE COMMENTS

Trustee Augustine stated that she hoped that an agreement regarding the Theater could be reached quickly.

9. CLOSED SESSION

None.

10. ADJOURNMENT