DLA Piper LLP (US) 203 North LaSalle Street, Suite 1900 Chicago, Illinois 60601-1293 Katherine C. Jahnke Dale katie.dale@dlapiper.com 312.368.2153 312.251.2856 October 19, 2015 President Sandra E. Frum and Members of the Board of Trustees Village of 1225 Cedar Lane IL 60062 Re: 1000 Skokie Boulevard Dear President Frum: We represent Life Time Fitness (?Life Time?) in connection with the development of the property located at 1000 Skokie Boulevard with a mixed-use project that will contain a Life Time Fitness facility, luxury apartment building and Children?s Learning Adventure daycare facility. In anticipation of the October 27 Village Board meeting, we are pleased to submit to you the enclosed development summary for the project. Process to Date This project was first presented to the Board of Trustees on December 9, 2014 as part of Life Time?s pre-application process. Since that time, Life Time has worked closely and diligently with Village staff, the Plan Commission and the Architectural Control Commission in efforts to respond to all concerns raised. Further, Susan Jacobs facilitated two meetings between Life Time and members of the East Homeowners Association (on December 8, 2014 and June 30, 2015). At those meetings, the overall development and three users were presented. The meetings were productive and had a positive tone. The majority of attendees were supportive of the project and acknowledged the local demand for both fitness and child care facilities in the area. Some attendees specifically appreciated the fact that the project did not include a sizeable retail component. As the project reached the Plan Commission, a second group of neighbors, many of whom were invited but chose not to attend the neighborhood meetings, organized and began holding meetings to discuss the project. These neighbors had questions and concerns about issues such as lighting, noise and traffic. Life Time and its development partners reached out to these other neighbors in efforts to attend their meetings and address their concerns, but such offers to meet were refused. Life Time has been and continues to be willing to discuss these concerns. Life Time and its development partners are appreciative of the time and input of all stakeholders and believe this collaborative process has benefitted the project. DLA PIPER October 19, 2015 Page 2 Project Modifications Highlights of the results of this collaborative process include, among other things, the following: Eliminated Necessary Setback Relief: The original site plan required setback relief for the residential building, due to the fact that the northernmost portion of the site fronts two public rights?of?way and the developer?s efforts to limit the height of the building. In response to Plan Commission feedback that additional height would be preferred over setback variances, the need for setback relief along both Skokie Boulevard and Sunset Ridge was eliminated by adding a story to the residential building. The number of residential units and parking spaces have remained the same. Added Parking and Land Bank 0 Commercial Parking. In response to concerns regarding the adequacy of surface parking, the project engineer and development team were able to add 17 stalls to the surface parking lot serving the Life Time Fitness and Children?s Learning Adventure buildings by identifying additional space in the site that could be used for parking. In addition, the development team identified additional space along Skokie Boulevard that could be land banked to provide approximately 68 additional parking spaces (total of 18.5% increase) for the fitness and child care users if the Village were to determine that additional parking is needed within five years of issuance of a certificate of occupancy for the last building to be completed. The consensus among Plan Commission members seemed supportive of the land banked parking proposal. Life Time is amenable to land banked parking but would request that the requirement to post a financial guarantee for the parking be eliminated. Rather, Life Time proposes that the obligation with respect to the construction of the land banked parking if and when required by the Village be addressed in the covenants, conditions and restrictions affecting the property, which will be subject to review and approval by the Village attorney. In the alternative, Life Time would be amenable to providing the land banked parking immediately if the Village Board prefers. 0 Residential Parking. The redesign of the residential building allowed for the short- term guest and prospective tenant parking to be increased from 5 spaces to approximately 24 spaces to address concerns raised by Plan Commission members that delivery people or other short-term guests of the residential building would likely utilize the surface parking intended for the other users. Off-Site Improvements: Although not discussed at the Plan Commission, trustees may be privy to the dialogue between Life Time and Village staff regarding allocation of the responsibility for the cost of off?site improvements and potential public participation in paying for such improvements. This is due to the fact that the improvements to the Skokie Boulevard and Sunset Ridge intersection that are recommended in connection with the development are currently warranted even without the proposed development DLA PIPER October 19, 2015 Page 3 and because the project will only generate 20% of the total projected traffic estimated to traverse the intersection. We are pleased to report that the request for public participation has been withdrawn and Life Time acknowledges that the costs (estimated to be over $2 million) of the off-site improvements shall be borne exclusively by the development. Plan Commission Outcome Despite the foregoing changes, the proposed development did not receive a favorable vote from the seven Plan Commission members that were at the September 29, 2015 meeting. At least one of the Plan Commission members who was not in attendance had previously indicated that he was supportive of the project. The concerns of those commissioners voting in opposition varied. As a result, Life Time would like to provide some additional information in response to what it believes to be the rationale for various commissioners? negative votes. Overall Proiect Synerqv; Uses: Two members of the Plan Commission who did not support the project did so largely based on concerns expressed about the mix of uses and synergy of the site. As master developer for the site, Life Time sought high-quality users that would complement each other and the surrounding office corridor. The proposed development accomplishes this goal, with each use serving and enhancing the others and the overall Skokie Boulevard office corridor. The Life Time Fitness facility will be an amenity to the area?s office users and parents of children enrolled in the Children?s Learning Adventure childcare program. The Children?s Learning Adventure will be a convenience for working parents and will meet a need in the market that is largely unmet. Finally, the multi-family residential building will allow for officer workers in the corridor to live conveniently near work. Additionally, the property has been consistently marketed for development for over a decade. The following is a summary listing of failed marketing attempts by both the current owner and Life Time in its efforts to master develop the site: Office - Potash Sy Taxman - American Solomon Smith - Terraco Chartered Bank Barney Angus (DOW) Woodhead Retail Chemical Industries 0 Fields Auto 0 Athletico 0 University of Group 0 Beltone Chicago - Fry?s Industries Hospitals - Kohl's - Evanston - Lowe?s Hospitals Multi-Use Developers Mariano?s - HSBC Corporate 0 CBRE - Meijer HQ 0 Endurance . Menards - Kaufman Hall 0 Focus 0 Target - Mesirow Klutznick DLA PIPER October 19, 2015 Page 2 - Walmart (2004, Briar Ridge ECD 2013) 0 David Development 0 GM Buick Rasmussen Raymond 0 Porsche 0 lsen Builders Property 0 Kia Optima Management 0 Hyundai - Bristal Assisted Geller Living Investment Co. Other - Romanek - Cemetery and Hotel Property's Chapel - Marriott - CSM Corp. 0 White Lodging Residential . Hyatt - AMLI Past marketing efforts have made it clear that the site is primarily appealing to destination type retail uses and that retail similar to what is provided at Skokie and Dundee is not possible in this location because there is not enough traffic to support it. The community has clearly indicated that it is not interested in destination style retailers for this property. Notwithstanding the lack of interest of other users, Life Time and its deveIOpment partners remain confident that the proposed mix of uses is appropriate, is complementary both internally and with the surrounding Skokie Boulevard office corridor, and will be an amenity to surrounding residents and office users. Residential Density: Two other members of the Plan Commission who did not support the project cited concerns regarding the apartment use and residential density. The proposed residential use is less dense than the previously-approved 770 project both with respect to units per acre for the overall site and per acre for the residential portion of the site. The residential market study shows that there remains a strong demand in the market for apartment product and that this is an excellent location for such development. Further, the height of the residential building is less than the 770 project and respectful of and consistent with the surrounding neighborhood. Sunset Ridge Access: There was not consensus among Plan Commission members regarding access onto Sunset Ridge. Nonetheless, most commissioners explicitly supported the access as designed by Life Time?s traffic engineers and as shown on the site plan, acknowledging that it will relieve any impact on the intersection of Sunset Ridge and Skokie Boulevard. The development team maintains that this access is critical to the internal circulation of the residential parking garage and overall accessibility for residents while having a minimal impact on Sunset Ridge. DLA PIPER October 19, 2015 Page 2 Class Property Tax Incentive: Although not explicitly raised by any commissioners as a reason for withholding support, the Cook County Class property tax incentive was raised on several occasions throughout the Plan Commission process. The Class property tax incentive was supported by the Village in order to encourage the current owner to make an investment in the property to remediate the environmental conditions and obtain a no further remediation (NFR) letter even though it was not financially justified at the time in order to encourage development. The objectives of the Class program are being met, evidenced by the fact that three reputable national companies are now seeking to develop the property. Further, notwithstanding the Class C, the development will increase the property taxes generated by the property significantly, with an estimated $2.6 million collected by the Village of $12.9 million collected by School District 28 and $10.2 million collected by School District 225 over a 20-year period with minimal impacts on Village services and only approximately 19 school-aged children anticipated to be generated by the development. In addition to increasing property tax revenues generated by the property, the development will benefit the community by making existing office buildings more competitive by providing attractive amenities to office users, undertaking significant off-site improvements, utilizing environmentally friendly and sustainable building practices and creating an estimated 250+ permanent jobs and hundreds of temporary constructions jobs. Overall, the development team believes that the project will be an amenity to the Village and office users while having a minimal impact on traffic, the surrounding neighborhood or Village services. Thank you for taking these matters under advisement. We look fonlvard to appearing before you on October 27 to answer any questions. Very truly yours, DLA Piper LLP (US) n. Latik wit Katherine C. Jahnke Dale CC: Tom Poupard David Schoon Aaron Koehler John Faulk Michael Paddison Barry Nekritz Rich Klawiter 1000 SKOKIE BOULEVARD 6 II m. ABOUT THE DEVELOPMENT 1000 Skokie Boulevard will be a vibrant mixed use development featuring a state-of-the-art Life Time Fitness Center, a luxury apartment complex and a Children’s Learning Adventure early childhood education center. It is truly a perfect blend of amenities, situated within the Skokie Boulevard Corridor, serving the Northbrook Community. ABOUT LIFE TIME FITNESS Life Time Fitness owns and operates distinctive, large-format sports, fitness, family recreation and spa destinations in 118 centers across the United States and Canada. The company’s ‘Healthy Way of Life’ approach helps organizations, communities and individuals achieve their total health objectives, athletic aspirations and fitness goals. LIFE TIME FITNESS • Three-story, 90,000-square-foot health, fitness and recreation center • 40,000-square-foot pool and deck • Cardiovascular and resistance training areas • Cycling, yoga, Pilates, and group fitness studios • Dance, art, music and tumbling studios for children • Indoor and outdoor cafes • Salon and spa enters ABOUT THE FINGER COMPANIES Since 1958, The Finger Companies has built a reputation as a leading independent developer of luxury multifamily properties. Its success stems from a commitment to cutting edge product design, the highest quality construction, lavish resident amenities, and superior property management. The Finger Companies creates truly unique properties that not only withstand the test of time, but also enhance the communities they serve. LUXURY APARTMENTS • 338-unit, five-story luxury apartment community - 70 percent one-bedroom units - 30 percent two-bedroom units - Average unit is 900 square feet - Other amenities include: gourmet kitchens, 10-foot ceilings, custom hardwood floors and more • Five-story, 575-stall parking garage • Two resort-style pools • Courtyards for gathering and socializing • Resident business center and conference rooms ® ABOUT CHILDREN’S LEARNING ADVENTURE Through its proprietary curriculum and amenity-rich facilities, Children’s Learning Adventure (CLA) is quickly becoming the nation’s elite provider of early childhood education. Founded in 2008, CLA has 25 facilities in six states and is expected to expand to 60 locations in 10 states by the end of 2016. CLA’s mission is to help children ages six weeks through 12 years become confident, independent learners who will develop a strong sense of self-worth, enabling them to make positive life choices. CHILDREN’S LEARNING ADVENTURE • 43,000-square-foot single-story building • The facility will include the following amenities: - Science lab - Television studio - Expansive library - Fully enclosed playground - Indoor basketball court - Bowling lanes - Computer lab - Broadway-style theatre - Music room with recording studio - Modern and classical dance rooms - Tutoring facility ® Childcare Centers 1000 SKOKIE BOULEVARD: GOOD FOR OUR NORTHBROOK COMMUNITY. In addition to transforming this property and providing tremendous living, recreational and childhood educational opportunities to the Northbrook community, the proposed development will: • Provide upwards of $15 million to School Districts 28 and 225 over the next 20 years, while adding minimal new students to the district • Provide conveniently located amenities in the Skokie office corridor that will help the existing office buildings compete in a competitive office market • Redesign and reconstruct the currently problematic intersection of Skokie Boulevard and Sunset Ridge Road • Create upwards of 250 permanent jobs • Provide work for hundreds of building trade professionals during construction • Immediately increase the property tax generated from the currently vacant land The proposed Life Time fitness facility, luxury residential building and early childhood education center will bring a renewed vibrancy to the area, offer valuable amenities to the surrounding residents and office users, and put this important parcel of land to productive use. Visit us online at LIFETIMEFITNESS.COM . In .1 . . J'lhlm. .. . LIT. . .. .s . . . .