South Central Reporter

City of Litchfield Economic Development Commission met April 11.

Here are the minutes provided by the commission:

Class 1 Members Present: Chairman Lonnie Bathurst, Vice-Chairman Paul Osborne, Jen Compton, Ron Norris, Kent Redfern, Dan Fleming, John Winans, Nancy Hyam, Meghan Hyam, Ken Elmore

Class 1 Members Absent: Lindsay Garner, Tim Burenga, Earl Flack

Class 2 Members Present: Alderman Ray Kellenberger

Guests Present: Chris Short, Erik Hyam, Eric Heyen, Tyler Heyen

Other City Representatives Present: Mayor Steve Dougherty, City Administrator Breann Vazquez, Alderman Jake Fleming, Alderwoman Sara Zumwalt

Chairman’s Comments:

Chairman Bathurst thanked Mayor Dougherty for his 12 years as Mayor, congratulated Mayor-Elect Jacob Fleming and Alderman Ray Kellenberger, and welcomed Nancy Hyam to the EDC. Bathurst asked Vazquez to review abstentions with the members, as a few members have expressed that they may need to abstain from today’s votes.

Vazquez referenced Robert’s Rules of Order regarding abstentions and stated that the City cannot direct a board member to abstain or not abstain; the decision is left up to the member. General guidance is that if a member has a direct financial interest, close personal relationship, or ethical concern, it is advised that they abstain from voting on the matter.

Erik Hyam noted that none of the applicants will be offended by decisions made by the commission.

Approval of Minutes: John Winans made a motion, seconded by Paul Osborne, to approve the meeting minutes from March 31, 2025. All in favor, motion carried.

Mayor’s Report:

Mayor Dougherty thanked the EDC for their volunteerism and thanked 4 members for being willing to renew their appointments to the commission.

Old Business:

Chairman Bathurst asked if anyone would like to make a motion to take the LUC’s request for funding assistance from the table. No motions were made.

Chairman Bathurst opened discussions on CETE Partners’ proposal for 608 N. State Street. Bathurst stated that he received a text from Shannon Hall indicating that the building at 608 N. State Street will not work for them and nothing has changed at this time. Winans asked the applicants if they had heard from LUC board members, to which Chris Short replied that a board member walked through the building, then met with the board, and they determined that the building does not meet their vision for the rec center. Short shared auto CAD drawings that he made to demonstrate the rec center fitting into 608 N. State Street. Vazquez noted that one concern they had with a previous building was the ceiling height to accommodate gym space and asked if that was factored in. Short replied that a gym space would be feasible but would require the roof structure to be reworked.

Dan Fleming stated that a board member indicated to him that the LUC is not 100% ruling out the potential of 608 N. State Street and that they are revisiting their plans and numbers. Short noted that he would like to see the facility be located within the heart of the city. Erik Hyam noted that this location provides an opportunity to expand with the three surrounding properties.

Kent Redfern noted that the issue seems to be that each time the cost to construct the facility raises, the funding gap also raises, and that the current plan will not cashflow. Winans stated he is concerned that the project will not happen if new construction is the route taken. Winans inquired about the City purchasing 608 N. State Street, to which Vazquez replied the current owner will not work with the City and the City does not wish to purchase as-is for $85,000.

Dougherty asked the applicants what their current plan is. Is it to white-box it? Erik Hyam replied that the plan is to white-box it for a future tenant should the LUC or another tenant not commit to the space. Dougherty asked Short if he has shared his rendering with the LUC board, to which Short replied he has not.

Winans inquired about the City’s plan for the use of TIF funds and asked what our goals are for the funds. The commission and applicants discussed the purpose of TIF funds and upcoming plans. Vazquez noted that the City has had this TIF for an initial term and is now within a 12 year extension period. The City had planned to use a majority of the funding for the soccer park, which is no longer planned. They are now focusing on eliminating blight and utilizing the funding to best accomplish that goal.

The discussion moved back to the timeline for the project at 608 N. State Street. Erik Hyam shared that the contract requires them to close within 30 days of funding approval from the City. They have been working on this project since January and they need to reach a decision on whether to proceed. Short added that the current owner is prepared to sign a 10 year lease for an ice machine on the property in the very near future.

The EDC and applicants discussed this building being a good fit for the LUC’s rec center. Vazquez noted that the City would be more apt to contribute to both projects if this were the case, but the LUC has stated that the property does not meet their vision, so we need to consider the proposal at 608 N. State Street without that element.

Redfern suggested meeting with the LUC separately to discuss where the EDC and Council are at currently in regard to their plan. The group agreed that this is a good idea. A meeting with the LUC board and City reps will be arranged.

As for 608 N. State Street, Vazquez noted that the concern for both the applicants and the City is their maximum out of pocket expense. The initial proposal was for a $1,162,000 24-month loan at 0% interest. The applicants would then pay back the City half of the appraised value of the completed structure.

The EDC and applicants discussed loan terms. Hyam noted that they are not doing this project for financial gain – it is to benefit the city and surrounding area.

Elmore made a motion, seconded by Redfern, to recommend to the City Council the issuance of a $1,162,000 24-month (or less upon project completion) 0% interest loan to CETE Partners. At the end of the loan term,

CETE Partners would be required to pay the City back half of the appraised value of the building, or a minimum of $400,000. All in favor, Meghan Hyam abstained, motion carried.

New Business: None.

Comments by Commissioners or Guests: None.

Adjournment: Meghan Hyam made a motion, seconded by Jen Compton, to adjourn at 1:04pm.

https://www.cityoflitchfieldil.com/AgendaCenter/ViewFile/Minutes/_04112025-389