City of East Moline Committee of the Whole

City Council Chambers 915 16th Avenue East Moline, IL 61244

nd DATE: Monday, July 2 , 2012 TIME: “Immediately Following the Regular Council Meeting”

1 Permission to Bid Utility Truck Lambrecht 2 Revised Purchase Policy O’Donnell 3 Increase in Compensation for City Clerk Cheffer 4 Land Use and Market Analysis Study Kammler CITY OF EAST MOLINE nd COMMITTEE OF THE WHOLE MEETING OF U JJuly 2 , 2012

AGENDA ITEM 1 DESCRIPTION: Permission to Bid Utility Truck DISCUSSED BY: Dave Lambrecht, Director of Maintenance Services BACKGROUND and DISCUSSION:

The Maintenance Services Drainage Departments 2001 F450 Super Duty dump truck with 92,275 miles on the vehicle needs replaced. The truck has surpassed its useful life and by replacing the truck would project a savings to the department’s budget I am asking permission to seek bids for a new 2013 4X4 Utility truck with a plow. Projected cost for the truck $43,000.00

The truck was budgeted for in the FYE 2012-2013 budget

RECOMMENDATION:

It is my recommendation to ask the council for permission to seek bids for the new truck, and bring the actual cost of the new truck back to council for consideration as it was a budgeted item.

BUDGET IMPACT:

$43,000.00 from Drainage Departmental Projects

ACTION REQUIRED: [ X ] PASS ON TO FULL COUNCIL FOR CONSIDERATION [ X ] REQUEST CITY ATTORNEY TO DRAFT A RESOLUTION OR ORDINANCE

MOTION BY SECONDED BY TO

CITY COUNCIL VOTES

ED HELEN GARY JEFF DAVE ROBERT GARY MAYOR VOTES DEJAYNES HEILAND ALMBLADE STULIR KELLEY CHEFFER WESTBROOK THODOS

YES

NO

SENT

ABSTAIN

CITY OF EAST MOLINE nd COMMITTEE OF THE WHOLE MEETING OF U J July 2 , 2012

AGENDA ITEM 2 DESCRIPTION: Revised Purchase Policy DISCUSSED BY: Cole O’Donnell, City Administrator BACKGROUND and DISCUSSION:

The purchase policy contains a section on disposal of surplus property. Currently, any surplus property must be presented to the council and a resolution passed declaring the property as excess. The policy also limits how the property can be disposed of and does not take into account multiple sale methods that can maximize return on the sale. The proposed revision allows property with estimated value under $1,000 to be disposed of without prior submission to the Council. A full listing of all disposed property will be presented to the council on a monthly basis. Property with a value greater than $1,000 will still be presented to the Council for declaration as surplus.

Methods of disposal have also been expanded to allow staff to select a method that maximizes potential return. In some instances items do not have enough value to justify sealed bids or an auction. Advertisements in trade magazines, online auction sites, and sale for scrap provide options that suit the item best based on condition and estimated value.

RECOMMENDATION:

Concur with proposed changes and direct the City Attorney to draft the appropriate resolution for adoption.

BUDGET IMPACT:

With modified disposal methods it is hoped that surplus property will be sold at greater prices.

ACTION REQUIRED: [ X ] PASS ON TO FULL COUNCIL FOR CONSIDERATION [ X ] REQUEST CITY ATTORNEY TO DRAFT A RESOLUTION OR ORDINANCE

MOTION BY SECONDED BY TO

CITY COUNCIL VOTES

ED HELEN GARY JEFF DAVE ROBERT GARY MAYOR VOTES DEJAYNES HEILAND ALMBLADE STULIR KELLEY CHEFFER WESTBROOK THODOS

YES

NO

SENT

ABSTAIN

EXISTING:

Any city equipment or other property, other than real property, or any abandoned property in the custody of the city that is no longer useful to the city, may be declared surplus property after the passage of a resolution by the City Council and later disposed of at a public auction or by sealed bids. Any public auction, or sealed bid must first be preceded by at least one (1) advertisement in a major newspaper of general circulation in the City of East Moline not less than four (4) days, nor more than twenty (20) days prior to such sale.

PROPOSED:

A. Declaration of Surplus Property

Any city equipment or other property, other than real property, or any abandoned property in the custody of the city that is no longer useful to the city, may be declared surplus property in the following manners:

1. Property with an estimated value of One Thousand Dollars ($1,000) or less may be submitted to the City Administrator and Finance Director for Declaration of Surplus Property. Said Declaration must be approved by both the City Administrator and Finance Director prior to disposal of the property. All property declared surplus in this manner shall be recorded and submitted to the City Council for review on a monthly basis. Review shall include description of property, estimated value, disposal method, and actual amount, if any, received for the property.

2. Property with an estimated value in excess of One Thousand Dollars ($1,000) must be submitted to the City Council for approval by resolution. Said Resolution must contain estimated value and proposed disposal method.

B. Disposal of Surplus Property

Any city equipment or other property, other than real property, or any abandoned property in the custody of the city declared as surplus may be disposed of by the following methods:

1. Sealed bids. At least one (1) advertisement in a major newspaper of general circulation in the City of East Moline must be placed not less than four (4) days, no more than twenty (20) days prior to date for receipt of the bids. The advertisement is to briefly describe the item(s), indicated where items can be viewed, and date, time, and place that bids are to be received.

2. Public auction. At least one (1) advertisement in a major newspaper of general circulation in the City of East Moline must be placed not less than four (4) days, no more than twenty (20) days prior to such sale. The advertisement is to briefly describe the item(s), indicated where items can be viewed, and date, time, and place of the auction.

3. Electronic auction. The item for disposal may be placed for sale on a reputable electronic auction site. Item description shall include all pertinent information necessary to insure an accurate description. A reserve of at least 80% of minimum value must be set for the item.

4. Advertisement. The item for disposal may be advertised for sale within a local newspaper with general distribution within the city and within appropriate governmental trade publications. The advertisement must contain a short description of the item, a price equal to minimum declared value, contact information, and right to refuse all offers. Duration of advertisement shall be no more than one week in any newspaper or no more than one edition of any publication.

5. Salvage. Any item that is considered damaged and unrepairable or has an estimated value of less than 10% of original value may be sold for salvage or scrap after obtaining 2 estimates for salvage or scrap value, when possible.

6. Discard. Any item that is considered damaged and unrepairable or has an estimated value of less than 10% of original value and having no salvage value may be discarded through refuse pick up or other means whereby the item is destroyed.

CITY OF EAST MOLINE nd COMMITTEE OF THE WHOLE MEETING OF U J July 2 , 2012

AGENDA ITEM 3 DESCRIPTION: Increase in Compensation for City Clerk DISCUSSED BY: Alderman Robert Cheffer BACKGROUND and DISCUSSION:

The City Clerk's position now pays $7,200.00 per year for a 40 hour work week.

Last year East Moline had two secretaries that were "job sharing" working 20 hours each per week. Their salaries ranged from $29,800.00 to $34,545.00 per year.

It seems fair to say the City Clerk's salary is low and a modest increase in pay is warranted.

RECOMMENDATION:

Ask the City Council to consider increasing the city Clerk's salary to $8,400.00 per year starting May 1st, 2013.

BUDGET IMPACT:

There will not be any impact on the budget until May 1st, 2013 since elected officials cannot receive pay increases during their term in office.

Starting May 1st, 2013, the pay increase will be funded from the General Fund.

ACTION REQUIRED: [ X ] PASS ON TO FULL COUNCIL FOR CONSIDERATION [ X ] REQUEST CITY ATTORNEY TO DRAFT A RESOLUTION OR ORDINANCE

MOTION BY SECONDED BY TO

CITY COUNCIL VOTES

ED HELEN GARY JEFF DAVE ROBERT GARY MAYOR VOTES DEJAYNES HEILAND ALMBLADE STULIR KELLEY CHEFFER WESTBROOK THODOS

YES

NO

SENT

ABSTAIN CITY OF EAST MOLINE nd COMMITTEE OF THE WHOLE MEETING OF U J uly 2 , 2012

AGENDA ITEM 4 DESCRIPTION: Land-Use and Market Analysis Study DISCUSSED BY: Tim Kammler, Director of Engineering Services BACKGROUND and DISCUSSION:

The City of East Moline received an EDA grant to help fund a Land-Use and Market Analysis study of the eastern portion of the city’s undeveloped land. The purpose of the study was to determine (1) what portions of vacant land may (or may not) be suitable for development, and (2) what specific types of development might be a good fit for these areas. Shive-Hattery was retained as our consultant for this project after a selection process. A summary of their work is attached for reference. Additionally, Shive-Hattery will be making a brief presentation of their findings at the COW meeting.

RECOMMENDATION:

Accept Shive-Hattery’s findings and studies to be used as a key economic development tool for future potential development along the I-5 / I-88 Corridor.

BUDGET IMPACT:

N/A

ACTION REQUIRED: [ X ] PASS ON TO FULL COUNCIL FOR CONSIDERATION [ ] REQUEST CITY ATTORNEY TO DRAFT A RESOLUTION OR ORDINANCE

MOTION BY SECONDED BY TO

CITY COUNCIL VOTES

ED HELEN GARY JEFF DAVE ROBERT GARY MAYOR VOTES DEJAYNES HEILAND ALMBLADE STULIR KELLEY CHEFFER WESTBROOK THODOS

YES

NO

SENT

ABSTAIN

Interstates 80 & 88 Corridor Study for the City of East Moline

Summary Report

SUMMARY REPORT TABLE OF CONTENTS

Scope of Services 1

Executive Summary 2

Maps and Photos 3

Tables 4

Recommendations for Development 5

Potential Industries and Retail Prospects 6

Project # 3113720

Scope of Services for Field Analysis Report The City was successful in securing an EDA grant to develop an overall conceptual development plan for the area. This report will include the requirements set forth in the grant award as follows:

A. Classify the study area into Prime, Reasonable, and Low/No Development Potential areas. 1) Inventory and analysis of land use, zoning, access, topography, hydrology, soil types, and infrastructure. 2) Identify potential development sites. B. Identify potential impacts on floodplains, wetlands, threatened and endangered species, and sensitive habitats, archaeological or historic resources and potential mitigation activities required to develop the land based on these findings. C. Review the city’s comprehensive plan and determine how the proposed land use will affect the plan and recommend revisions if necessary. D. Identify existing infrastructure. 1) Review the infrastructure “backbone” and determine cost effective upgrades and extensions. 2) Provide phased plan of development costs following Areas 1 through Area 6. 3) Provide Engineer’s opinion of costs associated with infrastructure improvements. E. Provide recommendations for desirable land parcel configurations. 1) Provide a sketch master plan illustrating the different development options for the area.

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Scope of Services for Marketing Analysis Report A. Compile an inventory of East Moline’s economic assets both inside and outside the study area. B. Provide an analysis of local, national and international business trends and their impact on potential development in the study area. C. Identify businesses best suited for the portions of the study area that are deemed to have potential for development. D. Review the projected growth of the identified industry sector in terms of jobs over the next twenty years. E. Provide a sample impact scenario for each identified industry sector, should businesses from these sectors choose to locate within the study area.

Project # 3113720 | June 25, 2012

Executive Summary The City of East Moline has a population of 21,302 according to the 2010 census, with a -0.6% growth since the 2000 census and encompasses approximately nine (9) square miles. East Moline has some of the strongest top employers in the Quad Cities area and they are as follows according to the Illinois Department of Commerce and Economic Opportunity: 1) John Deere Harvester Works 2,400 2) John Deere Information Systems 400 3) East Moline Correctional Center 300 4) United Township Avenue Career Center 260 5) McLaughlin Body 250 6) United Township High School 236 7) A-1 Best Locksmith 216 8) City of East Moline 190 9) Aramark 140 10) Creative Marketing 140 It can be seen that East Moline has the potential for growth in the Quad Cities area. The pursuit of progressive development within areas of the community will allow continued growth for years to come. With this in mind the City was successful in securing a Federal Economic Development Agency grant to review a 3500 acre study area for economic assets, infrastructure, and perform a marketing analysis of the study area. The report also includes conceptual development layouts for the area and costs for extending the necessary infrastructure to the site. In order to prepare the report and analysis we brought together a group of stakeholders that included local businessmen, property owners, development personnel, city staff and government officials to brainstorm development ideas for the study area. This group of individuals helped us mold the Preferred Concept for the report. It must be kept in mind that this is a concept and as such it will need to be reviewed, discussed and adjusted over time as the area begins to develop and as marketing for the area begins. The study area is located east of the downtown area along the Route 5/Interstate 88 corridor on each side of the Interstate 80 (I-80) and Interstate 88 (I-88) interchange (see Figure 1). The two interstates have a combined average daily traffic (ADT) count of approximately 45,000 vehicles per day. The study area has approximately 1000 acres that lie west of Interstate 80 and approximately 2500 acres that lie east of I-80 and south of I-88. This total acreage amounts to approximately 60% of the city’s existing 9 square mile area. It is large area that includes infill and greenfield opportunities and has the potential to provide the City of East Moline with economic opportunities into the future.

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Figure 1 Economic Assets Outside the Project Area The Quad Cities and surrounding area have numerous economic assets that enhance the marketability of the 80/88 Study Area. Referencing the “Comprehensive Economic Development Strategy for the Bi-State Region 2011” prepared by Bi-State Regional Planning Commission. The following Assets Outside the Project Area are as follows: Strengths Close proximity to multiple transportation modes gives the Bi-State Region an economic advantage over many similarly sized communities. Located at the crossroads of Interstates 74, 80 and 88, the Region offers residents and businesses abundant east-west and north-south access to major metropolitan areas. Waterborne commerce and recreation thrive along the Mississippi River. The Quad Cities International Airport provides daily passenger flights to 11 cities nonstop. There is great potential for recreation, tourism, and industry development.  Financial institutions have substantial funds available to invest in area projects. Financial resources to assist businesses are further enhanced by public sector programs for leveraging and loan guarantees at local, regional, state and federal levels. Revolving loan programs, tax increment financing (TIF) districts, enterprise zones, and SBA programs are all available.  Local organizations have economic development data and resources for job training and retraining to assist in business start-ups and expansions. Workforce development boards have enhanced capacities to assist in these economic development opportunities.  The area has a highly productive, well-trained labor force with a strong work ethic, and a cooperative attitude exists between labor and management organizations.  Excellent educational institutions, recreational facilities, and cultural activities offer a highly satisfying quality of life for area residents. Convention capacity, professional and amateur sports, plus tourism attractions and events draw large numbers of visitors to the Region.  Manufacturing technology partnerships are available to assist existing small and medium-sized manufacturers to implement plant automation and management techniques to improve their competitiveness and provide access to sophisticated manufacturing equipment.  An economic development network exists and includes a public/private partnership for unified marketing of the area.  There is a good working relationship with state level economic development agencies in both Iowa and Illinois.

Project # 3113720 | June 25, 2012 Page 3 of 10

 The cost of living is below the national average. Lower cost of housing provides a competitive advantage.  The area boasts an extensive transportation network, including interstate highways, plus rail and barge transportation that facilitate the development of distribution centers.  Renovation and expansion of the Quad Cities International Airport has increased capacity for larger passenger/cargo planes. Expansion has provided the opportunity for more low cost passenger service to both coasts and a direct link to major hubs and has become the regional airport of choice. Additional general aviation services are available in Davenport and Muscatine, Iowa and in Mercer County, Illinois.  Services for international trade, such as a Port of Entry, a Foreign Trade Zone, and the Quad Cities Container Freight Terminal, allow companies engaged in international business to save time and costs.  There is an abundance of treated water sources and adequate water treatment capacity exists to serve the needs of residents and industry.  The government entities in the Bi-State Region support cooperative agreements for services and commodities, including: police and ambulance service, joint purchasing; exchange of water and sewer services; shared river access and use; tourism and planning.  Energy resources are plentiful and reasonably priced.  The Rock Island Arsenal is one of the Region’s largest employers and provides opportunities for state- of-the-art manufacturing, procurement, service, and supply contracts for local business.  Riverfront development and redevelopment plans are being implemented and have a positive impact on the region.  Advanced telecommunications infrastructure and bandwidth for high-speed internet access are available. Economic Assets Inside the Project Area Rail Access The Burlington Northern Sante Fe (BNSF) Railroad has a line that adjoins along the south edge of the property. The BNSF line is a Class I rail line and suitable for service to the industrial areas. The rail service is a vital asset to the site that many businesses and industries are seeking. The BNSF rail service would connect the site to ports on the East and West Coast along with ports in the South and in Chicago to the Great Lakes. I-80 and I-88 Access The site is intersected with Interstates 80 and 88. These two transportation corridors have traffic counts of approximately 30,000 vehicles per day and 17,000 vehicles per day respectively. The site has direct access from Interstate 88, which provides a direct connection to the Chicago area. Interstate 80 provides the direct connection to the East and West coasts and all cities in between. We believe the direct access to these strategic transportation corridors will make the site appealing to the logistics and warehousing industries. Potable Water Service The City of East Moline has a 20-inch water line that lies the full length of the project from the east to the west. This asset is extremely valuable for providing prospective developers or industry a reliable water supply. East Moline’s existing water system is capable of supplying safe potable water to the site. Sanitary Sewer Service and Wastewater Treatment Facility The City of East Moline has preliminary plans prepared for the extension of the sanitary sewer service from the west side of Interstate 80. The wastewater treatment facility has a capacity for treating 11.1 million gallons per day (MGD) and their existing Average Daily Flow (ADF) treated is 3.3 MGD. Electric and Gas Service Mid-American Energy (MEC) has both Electric and Gas Service readily available at or near the site. MEC has 13.2 KVA lines in the area, along with multiple substations with available distribution to serve the site. There is a gas service through the area that serves a large user to the east. This gas service has adequate capacity to serve the area as it develops. MEC has indicated they will work with the City to provide the service to the area.

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Fiber Optic Network The Quad City region has a fiber optic network ringing the area. This network is maintained by several telecommunication providers and assures uninterrupted service to telephone company fiber optic users. In the event of damage to any portion of the cable, state of the art technology routes communications in a reverse direction on the ring. Customers are never aware of any cable damage. Key to the loop is the installation of conduit systems to house fiber optic cabling on all the bridges connecting the Iowa-Illinois Quad Cities. Communication Lines Situated at the crossroads of the nation’s fiber optic network, the Quad Cities provides solid communications infrastructure. The region has six major telecommunications providers and multiple long distance carriers with local points of presence (POPs). Both the Iowa Central Network and the Illinois Century Network have state- owned POPs in their respective portions of the Quad Cities. There are more than 25 local, regional and national Internet Service Providers (ISPs) whose services include broadband cable, fixed and mobile wireless, DSL, ISDN and T1 and T3 lines. Redundant intra and inter-city fiber optic network connects the central offices of the major telecom providers in the region. International, National and Local Business Trends According to a recent Brookfield Global Relocation Services article there is a significant rise in the multinational companies’ job growth with the greatest growth coming from companies headquartered in the Americas. Based on this information and other indicators it appears the international economy is starting to see signs of revitalization. Another trend is the foreign investment in new manufacturing opportunities in the United States. Of special interest to these companies is ease of access to major transportation networks and rail served sites. In the case of the East Moline I-80 and I-88 site it can provide both of these major assets. The challenge is marketing the site and developing those assets to attract these companies. Based on the acreage available this site will be one of the largest sites outside of the Chicago, Omaha, Des Moines, Minneapolis and St. Louis Metro areas. The national economy as a whole appears to be making a slight rebound in job growth. In particular there has been an uptick in industrial and healthcare sector construction projects. We believe this is based on the downturn in the cost of construction over the past few years, which means companies can upgrade existing or build new facilities for less money than in the previous three years. The commercial/retail sector appears to be starting a swing upward also, with increased projected growth from 2011 levels. The local economy of the Quad Cities appears to be moving along at a steady or upward pace from 2011 levels. Industrial manufacturers in the area are investing in new capital improvements at their existing facilities which is helping the local construction trades. Infrastructure spending is at a steady or increasing pace throughout the area also with large construction projects planned over the next few years including the Quad Cities Passenger Rail project, I-74 Bridge project, and the River Eagle – Port of Call Development, to name a few. It is believed the East Moline site has huge potential for attracting residential, commercial, retail, tourism, and manufacturing developers to the area. The challenge will be to develop enough of the infrastructure to or near the site to market it as “pad ready” and “rail-served”. If the funding can be secured to begin this process it will have a large impact on marketing the site and attracting prime businesses to the area. Site Development The 3500 acres in the study area were reviewed and a concept of potential uses was developed with input from the stakeholder meetings (see Appendix). These uses include Residential, Mixed Residential and Commercial, Commercial, Warehouse-Distribution, Industrial, Tourism, and Quarry. Based on these uses we have used the Buxton (Scout) and Economic Modeling Specialists, Inc. (EMSI) software to review how the addition of specific business and industries could impact the local economy. Both the Buxton (Scout) and EMSI software are based on national and local databases. The number of possibilities for review is practically endless. For this report we used EMSI to provide us with suggested industries for the area, reviewed those industries and determined which appeared to be best suited for the development area. We then entered a theoretical job creation number to a particular industry. The software was used to develop the potential economic impact to the area. The suggested industries we used for the area were Sheet Metal Work Manufacturing, Meat Processed from Carcasses, Crushed and Broken Limestone Mining and Quarrying, Department Stores (except Discount Department Stores), General Freight Trucking, Local, Fitness and Recreational Sports Centers, New Single- Family Housing Construction (except Operative Builders), General Warehousing and Storage, Refrigerated Warehousing and Storage. Actual output information is provided in the Appendix. The impact results are as follows:

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Crushed & Broken Fitness & New Single- Meat Limestone General Recreational Family General Refrigerated Sheet Processing Mining & Department Freight Sports Housing Warehousing Warehousing Metal Carcasses Quarrying Stores Trucking Centers Constructions & Storage & Storage

Year 2011 2011 2011 2011 2011 2011 2011 2011 2011

Jobs Added 100 400 15 200 100 50 20 100 100

Support Jobs 134 1406 30 71 74 6 14 69 55

Total Job Change 234 1806 45 271 174 56 34 169 155

Earnings Change (in thousands) $12,101 $83,918 $2,293 $8,375 $7,074 $707 $1,595 $8,058 $6,842

Earnings per Worker Change $2.62 -$20.95 $0.36 -$21.77 -$6.50 -$9.14 -$0.32 -$1.09 -$3.47

Sales Multiplier 1.6 2.01 1.67 1.52 1.68 1.61 1.61 1.64 1.59

Jobs Multiplier 2.34 4.51 3 1.35 1.74 1.13 1.7 1.69 1.55

Earning Multiplier 1.88 3.8 2.1 1.48 1.73 1.51 1.52 1.49 1.45

It is interesting to note that according the model the Meat Processing category has the highest potential for creating jobs for every one (1) job added there is the potential for an additional 4.51 being created.

As mentioned, in addition to using the EMSI software we used Buxton (Scout) software to determine what possible commercial/retail type businesses may be a good fit within this area. Buxton Scout software uses demographic information compiled from various databases to determine consumer purchasing habits and propensity purchase within a given area. Twelve commercial retail categories scored high in Consumer Profile and High or Comparable in Consumer Density. A listing of categories that scored high can be found in the Appendix. The software can also determine how much consumer purchasing is being satisfied from outside the area. In the case of this site, majority of the purchasing is from outside of the area. The Buxton (Scout) information in this report is an economic development tool to use when discussing this site with potential developers.

A custom Buxton (Scout) report for Cabela’s was created, per the request of the stakeholders, to determine if the site may be a match for this retailer. The reports indicate the site ranks in the top 50% for Behavior Index and Purchase Index, but ranks below the 50% mark on Median Household Income, Total Households and Total Employee Population. This is a starting point for discussions with Cabela’s or a developer to determine if these results are a deal killer for a potential project. The custom report can be found in the Marketing Analysis Report and Appendix.

Field Analysis

Following the marketing analysis we categorized approximately 740 acres of the approximate 1000 acres of property located west of I-80 as having either Prime or Reasonable development potential. The City is currently pursuing an industry to locate to a site that lies south of Route 5/I-88. The potential development site is 300 acres. According to the results of our economic model software runs, this industry has a job multiplier of 4.5 (for every one job created it is anticipated there will be another 4.5 created). This is one of the highest job multipliers seen in our software runs. The potential development of this site will help move the sanitary sewer closer to the I-88 and I-80 interchange, which in turn will open up more of the property for future development east of the interchange.

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The other areas west of I-80 were determined to be best suited for residential, residential/commercial, (inclusive) and light industrial. There are approximately 410 acres of prime to reasonable potential development area.

In order to develop the report in a coherent manner we broke the development area into six (6) areas. These areas are shown in Sheet No B0.01, below. The areas progress from the west to the east along Illinois Route 5 and the Interstate 88 corridor.

Area 2 Area 3

Area 4 Area 5 Area 6

Area 1

West Area

The areas west of I-80 will need to have Phase I archeological studies completed as the sites progress to development. The environmental concerns are similar across the whole 3500 acres and they are as follows: Indiana Bat, Higgins Eye Pearly Mussel, Sheepnose Mussel, Spectaclecase Mussel, and Eastern Prairie Fringed Orchid. West of I-80 a portion of the area is within the 100-year floodplain and will need to be permitted to bring the area up above the floodplain level. There are wetlands and farmed wetlands in the area and these will need to be identified as development progresses. It is our recommendation the non-farmed wetland areas be left in place if possible and even broadened to create a wetland bank or mitigation area for future development along the corridor, it will also act as a natural buffer area and can be developed with educational areas and recreational trails to connect to other East Moline trails.

Project # 3113720 | June 25, 2012 Page 7 of 10

We determined that of the approximate 2500 acres of property located east of I-80 there is about 1300 acres of property that was categorized as having either Prime or Reasonable development potential. According to our brainstorming sessions with the stakeholders group it was determined the conceptual uses for the areas should be Commercial Retail (approximately 300 acres) and Warehouse Distribution/Logistics (approximately 215 acres) along the I-88 frontage and Industrial (approximately 1000 acres) with rail access for the area to the south and near the Burlington Northern Sante-Fe (BNSF) railroad tracks, and Quarry area (approximately 550 acres) to the far east of the study area. There was also discussion of creating an indoor/outdoor sporting venue that could draw visitors to the area. The high traffic volumes in the area will make the site desirable for the types of businesses that were discussed with the stakeholders group. The economic and retail/commercial software that was used to model the area indicated there are possible gaps in the local commercial/retail market that would allow for the development of commercial/retail in the area. There is also the potential for the development of warehousing and logistics businesses based on the close proximity to the I-80 and I-88 corridor. The area near the BNSF tracks offers a great potential to attract businesses that need rail service. The city should engage in discussions with BNSF and determine if there are potential development opportunities based on BNSF’s knowledge of their client’s expansion projections.

We determined a rough order of magnitude opinion of cost to provide services and roadways to the site to be approximately $30,000 per developable acre. This did not include any costs associated with land costs and distributing the services or roadways throughout each site. These costs are very preliminary at this stage, but can be used for discussion purposes as the City moves forward with considerations for developing the sites. Cost opinions will be refined as areas are developed and more specific site requirements and details are known about the proposed development.

East Area

The areas east of I-80 predominantly lie within the 100-year floodplain, which in turn increases the cost of developing the property into buildable lots because of the amount of fill material required to bring the lots to or above the 100-year flood level. As mentioned previously the sites will need to have Phase I archeological studies completed as the sites progress to development. The environmental concerns are as follows: Indiana Bat, Higgins Eye Pearly Mussel, Sheepnose Mussel, Spectaclecase Mussel, Eastern Prairie Fringed Orchid. There are wetlands and farmed wetlands in the area and these will need to be identified as development progresses. It is our recommendation the wetland areas be left in place if possible and even broadened to create a wetland bank or mitigation area for future development along the corridor, it will also act as a natural area and can be developed with educational areas and recreational trails to tie into the other trails in East Moline.

We recommend the development of the area to proceed from east to west to take into account the progression of the sewer services. As the City pursues development in this area it is recommended they continue to promote the development of the areas east of I-80 by working with land owners, developers, and Quad Cities First to market the area as a first class commercial/retail and industrial development with rail access, with natural education areas and recreational trails.

The City of East Moline is a growing area and the study area makes up approximately 60% of East Moline’s existing land area. East Moline has a distinct opportunity to grow and create a unique showcase development area to further develop and create opportunities for existing businesses to expand and to attract new businesses to the area that will increase the City’s tax base, create jobs, and provide for a sustainable future for the City of East Moline.

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We determined a rough order of magnitude opinion of cost to provide services and roadways to the site to be approximately $72,000 per developable acre. This did not include any costs associated with land costs and distributing the services or roadways throughout each site. These costs are very preliminary at this stage, but can be used for discussion purposes as the City moves forward with consideration for developing the sites. Cost opinions will be refined as areas are developed and more specific site requirements and details are known about the proposed development.

Project # 3113720 | June 25, 2012 Page 9 of 10

Recommendations As previously indicated we divided the development area into six (6) areas and these areas progressed from the west to the east along the Illinois Route 5/I-88 corridor. We would anticipate the recommended improvements progress in the same way from west to east.  This project will require a large quantity of fill to bring the areas up to a level at or above the mapped flood elevation. To address this challenge it is our recommendation the City of East Moline begins talks with RiverStone Group to determine if there is a possibility of using their quarry overburden or quarry material as fill material for Areas 4, 5, and 6. This may help to reduce the cost of the fill material.  The sanitary sewer extensions and lift stations will have to progress from the west to the east. With this in mind, it would be most cost effective if the Areas developed in that similar fashion. Fortunately, the City is already marketing Area 1, which will help in getting the first piece of the sanitary sewer extended to Illinois Route 5 and 172nd Street. The next piece will be the residential Area 2 and commercial/residential Area 3.  The rail service to the Areas of 1, 4, 5, and 6 may also prove to be critically important in attracting potential industrial clients to the area. We have contacted the Burlington Northern and Sante Fe Railroad (BNSF) to determine their requirements for sidings and access to their rail line. We will continue to discuss the area with them. BNSF has an Economic Development Director and they may be willing to assist in attracting clients to the area if they know the site is available and can be easily served by rail. We would recommend the City of East Moline begin discussions with the BNSF related to rail service to the areas.  Area 5 appears to be the most problematic of the site due to the amount of fill and area of floodplain. The I-88 frontage (basically area north of Zuma Creek) can be developed initially with limited fill material. South of Zuma Creek will need to be reviewed further as the City looks at development in this area. It may be necessary to re-visit the idea of berming along Zuma Creek to allow for more cost effective development of Area 5 south of Zuma Creek.  Begin reviewing the cost opinions and determine what portions of the projects may be eligible for Federal or State funding through Economic Development grants, including rail extensions to get the sites “rail ready”.  We would also recommend getting the information for these areas to Quad Cities First to allow them to place it in their marketing information for prospective industries and developers.  The information that is provided for your use in the Market Analysis portion of the report should be used to begin discussions with developers and possible individual retailers to discuss their interest level in development along Interstate 88.  The City should capitalize on the idea of some of the area being used to develop a regional sporting venue for adventure sports. This may be a viable option with the proximity to the Rock River, available land, and access to the site by vehicle or recreation trails. The development of the site should be focused on preserving and enhancing the wetland areas throughout the site. Furthermore, by looking at the development with a comprehensive approach, it may provide an opportunity to develop a wetland banking program for use or sale by the city as the development proceeds.

Project # 3113720 | June 25, 2012 Page 10 of 10

The preferred conceptual layout per Stakeholder’s Input is shown below (a larger version is in the report):

Project # 3113720 | June 25, 2012

6 Area

5 Area

4 Area

3 Area

2 Area

1 Area

Area 1 ‐ @ 172nd & RR looking E Area 1 ‐ @ 172nd Looking NE to RR Area 1 ‐ @ 172nd & RR Looking SE

Area 2 ‐ @ 172nd and 5 Frontage Area 2 ‐ @ FR looking NW Area 2 ‐ @ FR looking SW Road Looking NE

Area 3 ‐ @ SE Quad looking NW Area 3 ‐ @ Hubbard Looking S Area 3 ‐ @NW Quad Looking N

Area 4 – Lift Station @ Creek Area 4 – Looking S Area 4 – Looking SE Looking E

Area 5 – @ 226th Creek Looking SW Area 5 – @226th & Drainway Area 5 – @ 226th & Drainway Looking SE Looking W

Area 5 – @ 226th RR Looking N Area 6 – @ 248th RR Looking NW Area 6 – @ 248th Looking NW

East Moline 80/88 Recommendations for Development

In preparing the report we divided the large 3500 acre study area into six (6) smaller areas. These areas progressed from the west to the east along the Illinois Route 5/I-88 corridor. We would anticipate the recommended improvements progress in the same way from west to east. This project will require a large quantity of fill to bring the areas up to a level at or above the mapped flood elevation. To address this challenge it is our recommendation the City of East Moline begin talks with RiverStone Group to determine if there is a possibility of using their quarry overburden or quarry material as fill material for Areas 4, 5, and 6. This may help to reduce the cost of the fill material. The sanitary sewer extensions and lift stations will have to progress from the west to the east. With this in mind, it would be most cost effective if the Areas developed in that similar fashion. Fortunately, the City is already marketing Area 1, which will help in getting the first piece of the sanitary sewer extended to Illinois Route 5 and 172nd Street. The next piece will be the residential Area 2 and commercial/residential Area 3. The rail service to the Areas of 1, 4, 5, and 6 may also prove to be critically important in attracting potential industrial clients to the area. We have contacted the Burlington Northern and Sante Fe Railroad (BNSF) to determine their requirements for sidings and access to their rail line. We will continue to discuss the area with them. BNSF has an Economic Development Director and they may be willing to assist in attracting clients to the area if they know the site is available and can be easily served by rail. We would recommend the City of East Moline begin discussions with the BNSF related to rail service to the areas. Area 5 appears to be the most problematic of the site due to the amount of fill and area of floodplain. The I-88 frontage (basically area north of Zuma Creek) can be developed initially with limited fill material. South of Zuma Creek will need to be reviewed further as the City looks at development in this area. It may be necessary to re-visit the idea of berming along Zuma Creek to allow for more cost effective development of Area 5 south of Zuma Creek. Begin reviewing the cost opinions and determine what portions of the projects may be eligible for Federal or State funding through Economic Development grants, including rail extensions to get the sites “rail ready”. We would also recommend getting the information for these areas to Quad Cities First to allow them to place it in their marketing information for prospective industries and developers. The information that is provided for your use in the Market Analysis portion of the report should be used to begin discussions with developers and possible individual retailers to discuss their interest level in development along Interstate 88. The City should capitalize on the idea of some of the area being used to develop a regional sporting venue for adventure sports. This may be a viable option with the proximity to the Rock River, available land, and access to the site by vehicle or recreation trails. The development of the site should be focused on preserving and enhancing the wetland areas throughout the site. Furthermore, by looking at the development with a comprehensive approach, it may provide an opportunity to develop a wetland banking program for use or sale by the city as the development proceeds.

Project # 3113720

Crushed & Broken Meat Limestone General Fitness & New Single- General Refrigerated Processing Mining & Department Freight Recreational Family Hoursing Warehousing & Warehousing Sheet Metal Carcasses Quarrying Stores Trucking Sports Centers Constructions Storage & Storage Year 2011 2011 2011 2011 2011 2011 2011 2011 2011 Jobs Added 100 400 15 200 100 50 20 100 100 Support Jobs 134 1406 30 71 74 6 14 69 55 Total Job Change 234 1806 45 271 174 56 34 169 155 Earnings Change (in thousands) $12,101 $83,918 $2,293 $8,375 $7,074 $707 $1,595 $8,058 $6,842 Earnings per Worker Change $2.62 -$20.95 $0.36 -$21.77 -$6.50 -$9.14 -$0.32 -$1.09 -$3.47 Sales Multiplier 1.6 2.01 1.67 1.52 1.68 1.61 1.61 1.64 1.59 Jobs Multiplier 2.34 4.51 3 1.35 1.74 1.13 1.7 1.69 1.55 Earning Multiplier 1.88 3.8 2.1 1.48 1.73 1.51 1.52 1.49 1.45

High/Comparable Profiles Category – Auto – Carquest, Neal Tire, Expert Tire, Advanced Auto Parts, AC Delco, O’Reilly Auto Parts, AutoZone, Tire Warehouse, Mr. Tire, NAPA Auto Parts, Best One Tires, Mickey Shorr, GCR Tires Category – Fast Food – Hardees, Captain D’s, A&W Restaurant, Long John Silvers, Dairy Queen, Blimpie, Taco Johns, Subway, KFC Category – Hardware – Rural King, Buchheit, Sutherland Lumber, Do It Best, Menards, True Value, Fastenal, Paladin Construction Light, Ace Hardware Category - Restaurant – Johnny Rockets, Hometown Buffet, Ryans, Pizza Hut, Godfathers, Lees Chicken, Little Caesars, Fazolis, Lonestar, Au Bon Pain, Shoneys

Category – Services – Big R, Jackson Hewitt, HR Block

Category – Sporting Goods – Dunhams Sports, Hibbett Sports, MC Sports

Category – Wholesale Clubs - None

Category – Gym – Curves, World Gym

Category – Grocery – IGA Supermarkets, Save-A-Lot, Scotts, Hy-Vee, Cub Foods, Foodland, Aldi, JayC

Category – Department Stores – Sears, JC Penney

Category – Retailer – Case IH, Blick, Orscheln, JoAnn Fabrics, Swarovski, Movie Gallery, Tractor Supply, Vera Bradley, West Marine, Lladro, Waterford Crystal; Farm & Fleet, Hancock Fabrics Category – Theater – Carmike Cinema, Hollywood Theaters, AMC Movie Theater As you can see there are a number of retailers that have a strong match potential for this development area. These potential lists of possible matches can be used by the City as an economic development tool when discussing with potential developers for the site.

Bass Pro Shops is a part of the retailers that are in the Retail Match software. Bass Pro ended up showing an Average Profile Match Quality and a Low Consumer Density match. This does not necessarily mean Bass Pro will not consider the site, it means based on where Bass Pro has existing stores and the demographic that makes up there customer base, this site does not match well when compared to their existing store criteria. We also asked Buxton to run a custom report for Cabela’s to determine if the site may be a match. Following this page are the Buxton reports for a 30 and 60 minute drive time. The reports indicate the site ranks in the top 50% for Behavior Index and Purchase Index, but ranks below the 50% mark on Median Household Income, Total Households and Total Employee Population. This is a starting point for discussions with Cabela’s or a developer to determine if these results are a deal killer for a potential project.