Woodstock City Council Special Meeting – November 4, 2022

The Woodstock City Council held a special meeting on November 4, 2022, from 10:00 a.m. to approximately 1:00 p.m. to receive presentations from three developers vying to redevelop the approximately 9-acre DICAS site. The meeting included presentations by Pancor Construction, Chicago Hubs Realty (CHR), and Hoffman Planning, Design & Construction, Inc. The council took no votes; instead, the session was intended for information gathering, after which council members will provide feedback to staff, who will recommend a developer for formal negotiations. The meeting was live-streamed and recorded for council members unable to attend.

Public Comments & Testimony

• No members of the public came forward to speak during the public comment period.

Presentations & Discussion Items

Pancor Construction (10:00 a.m. – 11:00 a.m.)

• Representatives: Peter Nelson and Alex Fazeman.
• Proposal: A phased development of the southern 1.5-acre portion of the site, consisting of a 46-unit market-rate multifamily building (with a mix of one-, two-, and three-bedroom units) and a 9,800-square-foot commercial/retail space on the first floor, plus a community-focused public space with a band shell and interpretive signage honoring the site's history.
• Financials: Total project cost estimated at $13.5 million for the multifamily building and $4.9 million for the public space. They requested a land donation, full TIF incentives, expedited permitting, and potential enterprise zone incentives. They projected $1.4 million in total property taxes over the first 10 years, with $843,000 allocated to development under a proposed 75% property tax recovery for the first five years and 50% for the next 10 years.
• Rents: $1.35–$1.55 per square foot for one-bedrooms (approx. $1,350–$1,550/month); three-bedroom units expected to exceed $3,000/month.
• Timeline: 90–120 days due diligence; permit package ready by March 15, 2023; construction start May 1, 2023; 12–15 months build time.
• Parking: 70 spaces on-site (1.5 spaces per unit), with additional public parking considered at the north end of the site for events.
• Key Positions: Pancor expressed full support for a phased approach, emphasizing viability and conservative market absorption. Council members questioned the feasibility of phasing, the lack of a hotel component, and long-term maintenance. The mayor noted that the public-space concept originated from a resident idea and was developed in collaboration with Pancor.

Chicago Hubs Realty (CHR) – Union Place (11:10 a.m. – 12:00 p.m.)

• Representatives: Steve Sandholtz (WellQuest Living), Stephen Held (Dial Companies), Brian Fritz (Pioneer Property Management/Iceberg Development), Drew Magalette, and architect Heidi.
• Proposal: A four-building development covering the entire nine-acre site, including:
  • Building 1 (North): 150-unit independent living, assisted living, and memory care senior community (private pay).
  • Building 2 (Near tracks): 70-unit senior affordable housing (using low-income housing tax credits – 4% non-competitive program).
  • Building 3 (South, near amphitheater): 150-unit market-rate multifamily (51 one-bedrooms, 102 two-bedrooms).
  • Structured parking garage with over 400 spaces (including replacement of existing Metra parking).
  • 25,000 square feet of commercial/restaurant space, an ellipse park/amphitheater, and a central park.
• Financials: Total development value estimated at $70 million (for the senior living building alone). They seek a land donation but no TIF for the first two phases; the parking garage and some public amenities would require TIF generated by the senior living building. They have already applied to the county for ARPA funds and begun HUD financing for the senior living component.
• Rents (Affordable): Approximately $900–$1,000 for one-bedroom, $1,100–$1,200 for two-bedroom (near market rates).
• Timeline: Senior affordable groundbreaking in 2023 (12–15 months construction); independent living/assisted living start in mid-2024 (18 months); multifamily phase three start in 2025 (18+ months).
• Parking: Total 416 spaces, with 30% shared-use reduction; includes 132 spaces for existing Metra, 229 for multifamily, and remainder for commercial and senior uses.
• Key Positions: CHR emphasized their long-term hold strategy, project finance discipline, and ability to generate TIF to fund public infrastructure. Council members questioned the senior housing concept but acknowledged its economic driver role. The mayor noted that the senior living building would generate significant incremental tax revenue to finance the parking garage. CHR stated they have not yet secured a hotel operator but are in active discussions.

Hoffman Planning, Design & Construction / Cedar Prize (12:12 p.m. – 1:00 p.m.)

• Representatives: Steve Avang (local Woodstock native), Steve Rourke (project finance), Joe Truehart (construction), and Russ Havini (civil planning).
• Proposal: A master-planned development with four buildings on the entire site:
  • Building 1: 210–240 multifamily market-rate apartments over a podium with underground parking and ground-floor commercial.
  • Building 2: 80–100 key boutique hotel integrated with a 300–330-stall parking structure (with future expansion possible), plus rooftop plazas and ground-floor retail.
  • Building 3: 65–75 upscale apartments with underground parking (40–50 stalls), connected via skywalk to the parking structure.
  • Building 4: Additional multifamily (subject to final programming).
  • Total: 360–365 apartments, up to 100 hotel rooms, 821 parking stalls, 29,000 square feet of commercial, and an ellipse park/band shell plus central park.
• Financials: Total construction budget $157 million. Financing through project finance (non-recourse, 10% equity, single construction-to-permanent loan, 15% profit margin). They emphasized that this model is easier to close and requires extensive third-party feasibility studies.
• Workforce Housing: 20% of units designated as workforce housing (not low-income or Section 8).
• Timeline: Groundbreaking for multifamily building by September 2023; hotel and parking structure by February 2024; other buildings to follow.
• Key Positions: Hoffman and Cedar Prize stressed their financial expertise, 130-year company history, and ability to attract institutional investors. Council members noted that the proposal was less detailed architecturally but that the financing model and scale were significant. The mayor acknowledged that the project is earlier in conception but praised the team's experience. Councilmembers pressed for clarity on investor commitment; the team stated they are in talks with multiple owners who will finalize after a master development agreement is signed.

Key Outcomes

• The council took no formal votes or decisions. The meeting was solely for information and council feedback.
• Council members will submit questions and comments to city staff, who will compile input and recommend a developer to enter into formal development negotiations.
• The city will post all presentations (including videos) on the city website for review by council members who were unable to attend.
• Further council discussion on the proposals is scheduled for the November 15, 2022 regular council meeting.
• Next steps: City Manager Roscoe Stelford III and senior staff will evaluate the proposals and council feedback, then select a developer to begin a detailed, public planning process involving the Plan Commission and Historic Preservation Commission.
• The mayor emphasized that regardless of the developer chosen, any final plan will require public hearings, commission approvals, and a council vote.