Sangamon Sun

Sangamon County Board met June 27.

Here are the minutes provided by the board:

The Sangamon County Board met in Special Session on June 27, 2023 in the County Board Chambers. Chairman Van Meter called the meeting to order at 5:30 p.m. Mr. Krell gave the Invocation and Mr. Fraase led the County Board in the Pledge of Allegiance.

ROLL CALL 

Chairman Van Meter asked County Clerk Gray to call the roll. There were 24 Present – 5 Absent. Mr. Ayers, Mr. Constant, Mr. Madonia, Mr. O’Neill, and Mr. Schackmann were excused.

PRESENTATION 

Abby Powell, Director of Business Development for the Springfield-Sangamon Growth Alliance, introduced Brad Fletcher with the Illinois Finance Authority. Mr. Fletcher stated they are a self-funded state agency and are very motivated to close economic development projects across Illinois. To date, they have issued bonds in the amount of $78 million for various projects across the state in terms of C-PACE financing. C-PACE financing is an acronym for commercial property assessed clean energy financing. This is a special assessment that the County would impose upon the voluntary request of an eligible property owner or developer. It is debt financing. Traditionally, debt financing is secured by mortgages, just like the County records mortgages. Under this program, the County would simply be recording special assessments.

Mr. Fletcher briefly explained what a pace project is. It can be used by owners and developers to finance and refinance eligible improvements affixed to any privately owned commercial, industrial, non-residential, agricultural, multi-family property, or any private property owned by a non-for-profit entity. In each case, it would be in connection with existing buildings and new construction up to 25% of the value of the property. Under the Illinois Property Assessed Clean Energy Act, eligible improvements generally include fixtures, products, systems equipment, devices and materials intended for energy efficiency, renewable energy, resiliency, or water use. Electric vehicle charging stations are also eligible improvements. C-PACE financing does not accelerate upon a default. In contrast, when a lender is secured by a mortgage, the lender accelerates the entirety of the mortgage upon a default. C-PACE financing permits terms up to 40 years. Should you proceed with adopting the ordinance later, you are simply making the opportunity available to property owners and developers as the City of Springfield already has. Typically, because this is commercial real estate, these terms are up to 30 years. It is only for resiliency improvement, flood mitigation, or seismic retrofits that they see 40 years. C-PACE financing also allows financing up to 100% of all projects and closing costs. This is a new form of debt financing available for commercial and property owners. Adoption of the ordinance simply makes the tool available in a tool box. They would always come back for execution of the two collateral documents that would be appended to the program, should you consider adopting the ordinance. Those two forms of documents are standardized and are not subject to change. It is those features that lower the costs of these programs. IFA is offering a standardized statewide agency with a standardized product all lenders can avail themselves to, and because of that standardization they lower the legal and financing cost. More importantly, for Sangamon County, IFA undertakes the financing and not the County itself. For the Counties purpose, there is no compliance or accounting obligations.

RESOLUTION 1 

1. Resolution approving a grant application for Public Health from the Illinois Department of Public Health for the Strengthening IL Public Health Administration program in the amount of $700,000.

A motion was made by Mr. Stumpf, seconded by Mr. McGuire, to place Resolution 1 on the floor. Chairman Van Meter asked County Clerk Gray to call the roll. Upon the roll call vote, there were 23 Yeas – 0 Nays.

MOTION CARRIED

RESOLUTION ADOPTED

RESOLUTION 2 

2. Resolution approving the execution of contracts with multiple prime contractors and the architect regarding the Helping Hands project located at 2201 South Dirksen Parkway.

A motion was made by Ms. Deppe, seconded by Mr. Bunch, to place Resolution 2 on the floor. Assistant State’s Attorney Joel Benoit gave a brief explanation. There are two sets of contracts. One is for prime contractors and the other is for the architect. Resolution 2 only concerns the multiple prime contractors. Resolution 3 is for the architect.

Mr. Cahnman stated the resolution talks about the dollar value, but there is no actual dollar value stated in this resolution. Mr. Benoit stated the material was handed out tonight. There is an O’Shea letter that was handed out in your packet. It is referenced as attached as an exhibit in the resolution. Mr. Cahnman asked if the total amount would be $8,552,480. Chairman Van Meter confirmed that is the total amount. Mr. Benoit stated this resolution is asking for approval of roughly $7.5 million. Chairman Van Meter stated he thinks the Building & Grounds Committee could speak to the extensive vetting that has gone into this building when bids came back considerably above our estimates of two years ago. They have done very extensive vetting and re-working of the whole project. The Building & Grounds Committee was convinced this was still the best path forward.

A motion was made by Mr. Preckwinkle that the roll call vote for Resolution 1 stands as the roll call vote for Resolution 2. A voice vote carried. Ms. Small and Ms. Douglas Williams voted no on Resolution 2.

MOTIONS CARRIED

RESOLUTION ADOPTED

RESOLUTION 3 

3. Resolution authorizing the County Administrator, with specified parameters, to execute a contract on Sangamon County’s behalf with JH Petty & Associates (Architect) for work on the Helping Hands project located at 2201 South Dirksen Parkway.

A motion was made by Ms. Deppe, seconded by Mr. Miller, to place Resolution 3 on the floor. Mr. Cahnman asked if the amount to the architects is for future work. Chairman Van meter stated they have done quite a bit of work on it and have been paid for some of the work they have done. Mr. Cahnman asked if the 8.5% of the cost is of the $7,487,420. Mr. Benoit stated it would also include the fee paid to the construction manager/advisor which is another $800,000. Mr. Cahnman asked how the architect would bill for their services. Mr. Benoit stated this does seem to be a situation where some of it is the cart before the horse, but some of the payments have already been made. Chairman Van Meter stated the architect does bill by the hour.

A motion was made by Mr. Preckwinkle that the roll call vote for Resolution 1 stands as the roll call vote for Resolution 3. A voice vote carried. Ms. Douglas Williams, Ms. Small, and Mr. Cahnman voted no on Resolution 3.

MOTIONS CARRIED

RESOLUTION ADOPTED

NEW BUSINESS 

There was no new business. The nominations for appointment in July were submitted. 

PUBLIC COMMENT 

There was no public comment.

Ms. Lathan asked if on Resolution 1 they could get more details from Public Health on the goals and activities for the County for the $700,000. Chairman Van meter stated this would have gone to the Public Health Committee, but they can get her more information on it.

Chairman Van Meter reminded the board members that they are going to strictly enforce the non-attendance participation at the board meetings. They have been a little loose on that as they have been adjusting, but they are going to strictly enforce those rules going forward. If you have questions check with Brian or Joel and they can clarify what situations qualify for attending the board meetings electronically.

RECESS 

A motion was made by Ms. Williams, seconded by Mr. Bunch, to recess the meeting to July 11, 2023 at 7:00 p.m. Chairman Van Meter stated a number of board members have indicated they like the earlier meeting hours. They will talk about that at the next board meeting in caucus and how they might adjust the schedule and see where everyone is on that. A voice vote was unanimous to recess the meeting.

MOTION CARRIED

MEETING RECESSED

https://countyclerk.sangamonil.gov/County-Board/documents/June272023SpecialMtg.pdf