HomeMy WebLinkAbout2024-08-27 - PZB Minutes - FINALCase No. 24-043-TA Text Amendment Citywide
1
DES PLAINES PLANNING AND ZONING BOARD MEETING
August 27, 2024
MINUTES
The Des Plaines Planning and Zoning Board held its regularly scheduled meeting on
Tuesday, August 27, 2024, at 7:00 p.m. in Room 102 of the Des Plaines Civic Center.
Chairman Szabo called the meeting to order at 7:02 p.m. and roll call was established.
PRESENT: Weaver, Fowler, Bronakowski, Saletnik, Veremis, Szabo
ABSENT: Catalano
ALSO PRESENT: Samantha Redman, Senior Planner
Ryan Johnson, Assistant Director of Community & Economic
Development
A quorum was present.
APPROVAL OF MINUTES
A motion was made by Board Member Weaver, seconded by Board Member Veremis
to approve the meeting minutes of August 13, 2024, with corrections provided to staff.
AYES: Weaver, Saletnik, Veremis, Bronakowski, Szabo
NAYS: None
ABSTAIN: Fowler
***MOTION CARRIED***
PUBLIC COMMENT ON NON-AGENDA ITEM
There was no public comment.
General Communications:
Chairman Szabo stated the list of administrative decisions is now located on the agenda for each meeting
for approvals or denials of minor variations.
Chairman Szabo asked about the cases where siding is allowed instead of brick. Senior Planner Redman
clarified it was frequently for alterations to buildings with existing siding or for additions to a rear of a
property.
Case No. 24-043-TA Text Amendment Citywide
2
Member Veremis and Chairman Szabo asked about the appeal process. Ms. Redman stated they would
apply for an appeal within 30 days and present the case at a public hearing with the Planning and Zoning
Board, appealing the determination or interpretation of the zoning administrator. Ms. Redman stated that
they have received appeal requests before, but often an alternative design or other measure is coordinated
by staff not requiring this zoning relief.
Pending Applications:
Chairman Szabo introduced the case on the agenda.
1. Address: Citywide Case Number: 24-043-TA
Consider Zoning Ordinance amendment to amend Footnote 17 in Section 12-7-3.K. to exempt
medical clinics and laboratories from size and proximity restrictions for office uses.
PIN: Citywide
Petitioner: Greater Family Health, Inc. 3150 W. Higgins Rd. Ste 130, Hoffman
Estates, IL 60169
Case Number: #24-043-TA
Senior Planner Samantha introduced the item and went through the presentation of the staff report.
Issue: Consider Zoning Ordinance amendment to amend Footnote 17 in Section 12-7-3.K. to
exempt medical clinics and laboratories from size and proximity restrictions for office uses.
PIN: Citywide
Petitioner: Greater Family Health, Inc. 3150 W. Higgins Rd. Ste 130, Hoffman
Estates, IL 60169
Case Number: #24-043-TA
Background
Greater Family Health, Inc is seeking to open a community health center in a combined tenant
space in The Oaks Shopping Center at 1515 Lee Street. This property is zoned C-4, Regional
Shopping District. The proposed type of use has historically been classified as an “office”. In the
C-4 Zoning District, this use is permitted if the floor area is below 5,000 square feet and is not
contiguous to another office use. The definition for office is below:
“A use or structure where business or professional activities are conducted and/or business or
professional services are made available to the public, including, but not limited to, tax preparation,
accounting, architecture, legal services, medical clinics and laboratories, dental laboratories,
psychological counseling, real estate and securities brokering, and professional consulting services,
but not including drive- through service windows, the cutting and styling of hair, or recreational
facilities or amusements.” (Section 12-13-3).
Case No. 24-043-TA Text Amendment Citywide
3
In 2018, an amendment was added to the C-4, Regional Shopping District permitting by right a
limited amount of office space (2,500 square feet) and specified it could not be contiguous to
another office use.1 The stated reason by staff for limiting office uses to this amount is to encourage
uses more in line with the retail/shopping uses of this zoning district, versus allowing shopping
centers to be consumed by office uses with little retail activity. In 2021, the footnote was modified
to allow up to 5,000 square feet of office in this zoning district.2
As the petitioner discusses in their narrative and response to standards, the intent with the text
amendments is to provide a path to allow for this business in this specific location. However, any
text amendment is broadly applicable to the entire city and must be assessed for its potential
impacts.
Examples from Other Municipalities
The zoning ordinances of six surrounding municipalities were referenced to understand how
medical offices are generally regulated by other communities. The definition of this type of use
slightly varies, although most include a separate use for medical offices versus other office uses.
Generally, the use is permitted within business, commercial and office districts, including shopping
districts, without the limitations the Des Plaines zoning ordinance presents for the C-4 Zoning
District. Refer to Surrounding Community Regulations (Attachment 4). Des Plaines was the only
municipality with a limitation on size of office spaces and inability to locate office spaces
contiguously.
Shopping Center Medical Uses 3
Increasing rates of vacancy in shopping centers have led to property owners seeking creative
solutions for filling empty retail spaces. Many spaces are being filled with businesses focused on
the sale of experiences versus physical goods. Shopping centers, including locations within Des
Plaines (such as the shopping center at Golf Rd and Elmhurst Ave), are increasingly the location
of recreational facilities such as trampoline parks, pickleball courts, and fitness clubs.
Simultaneous to the decline in shopping malls, medical care has had an increasing focus on out-
patient care and improving convenience for patients. Locating medical uses within existing malls,
including strip malls, has been guided by the increasing availability of vacant spaces, an interest
in improving proximity of access to patients, and ample parking and often public transportation
available to shopping centers. Frequently these facilities provide shorter wait times, walk-in
appointments, and convenient hours. In addition, the location allows for “one-stop” shopping for
patients. For example, the proposed location of Greater Family Health at 1515 Lee St (within The
Oaks shopping center), a patient could leave an appointment and shop at any of the retail shops,
including the grocery store, eat at the various restaurants and visit the bank. Unlike a hospital or
1 Ordinance Z-28-18
2 Ordinance Z-28-21
3 Uscher-Pines, L., Mehrotra, A. & Chari, R. On call at the mall: a mixed methods study of U.S. medical malls. BMC
Health Serv Res 13, 471 (2013). https://doi.org/10.1186/1472-6963-13-471
Case No. 24-043-TA Text Amendment Citywide
4
office park, there are additional activities available for patients after an appointment and employees
during breaks or before/after the workday, promoting commercial activity.
For property owners of shopping centers, medical offices are an appealing tenant, as most are
interested in longer term leases and frequently invest in improvements for the space. Currently the
demand for medical office space exceeds vacancies in the United States, and investment into
standalone medical office buildings has decreased in recent years.4 Shopping centers fill a void in
available space for medical centers to meet the demand of the industry.
Impact on C-4 Zoning District
To exemplify the effect of allowing larger medical offices in this zoning district, Attachment 4
provides a map noting the locations of existing medical offices within Des Plaines and the locations
of the C-4 Zoning District. Overall, there are 62 registered medical uses within the City. Within
Des Plaines, there is one hospital, seven primary or family practice physicians, five medical
laboratories, and a variety of specialty medical disciplines such as dentistry, rheumatology,
optometry, occupational or physical therapy, podiatry, or mental health practitioners.
The four areas of the city within the C-4 zoning district are generally devoid of medical facilities
offering comprehensive medical care. Note the existing regulations in this zoning district allow
this use by right, but limit the overall size of the office space; this amendment would make medical
uses exempt, and allow for filling of larger tenant spaces with medical offices. Most existing
medical offices in this zoning district are specialists, such as dentists or optometrist that do not
require the same amount of space as a larger facility offering more comprehensive medical care.
For example, The Oaks shopping center includes a dentist but no immediate care or other primary
care physicians within a ¼ mile.
In considering this text amendment more comprehensively, it is important to note that each
property currently zoned C-4 is situated near transit options, with some located adjacent to multiple
transit services and complemented by substantial parking facilities, facilitating convenient access
for clients arriving by bus or personal vehicles. This amendment may create opportunities for
filling vacant storefronts in shopping centers and to expand potential locations for medical care in
accessible areas that are enhanced by the commercial amenities and increased activity that medical
uses can bring.
Proposed Amendments by Petitioner
The petitioner proposes the follow amendment to the Commercial Use Matrix in Section 12-7-
3.K:
Uses C-1 C-2 C-3 C-4 C-5 C-6 C-7
Offices C P P P17 P P
4 Janus, Selbiger, and Seward, Colliers Healthcare Marketplace Report, Feb 26, 2024.
https://www.colliers.com/en/research/nrep-healthcare-marketplace-2024
Case No. 24-043-TA Text Amendment Citywide
5
17 Office uses in the C-4 Regional Shopping District, except for medical clinics and laboratories, shall
be limited to 5,000 square feet of area and shall not be contiguous to another office use.
Refer to the Petitioner’s Standards for Amendment for justification of this request.
Standards for Text Amendment:
The following is a discussion of standards for zoning amendments from Section 12-3-7.E. of the
Zoning Ordinance. Rationale for how the proposed amendments would satisfy the standards is
provided. The PZB may use the statements below as its rationale or adopt its own.
1. Whether the proposed amendments are consistent with the goals, objectives, and policies
of the comprehensive plan, as adopted and amended from time to time by the City Council;
The proposed text amendments would foster additional commercial options for existing, vacant
properties within shopping centers of the city, promoting the economic development initiatives
of the Comprehensive Plan.
2. Whether the proposed amendments are compatible with current conditions and the overall
character of existing development;
The proposed amendments provide an avenue to promote the purpose of the C-4 Zoning District.
It is important to note that this type of use is permitted by right in this district, but the size is
restricted. This amendment makes medical uses exempt from the requirement, allowing for
larger tenant spaces to be developed and utilized with generally long-term leases.
3. Whether the proposed amendments are appropriate considering the adequacy of public
facilities and services available;
Staff does not see any indications that the amendments will affect public facilities and services.
4. Whether the proposed amendments will have an adverse effect on the value of properties
throughout the jurisdiction; and
The proposed amendments are intended to benefit the value of surrounding properties and
overall economic stability of the shopping centers within the city by expanding the range of
commercial uses that could fill vacant storefronts.
5. Whether the proposed amendments reflect responsible standards for development and
growth.
The proposed amendments encourage a range of uses within commercial districts. The
amendment also would expand the location of medical care uses within certain areas of the city,
keeping up with trends for these types of facilities.
Case No. 24-043-TA Text Amendment Citywide
6
PZB Procedure and Recommended Conditions: Under Section 12-3-7.C.3 of the Zoning
Ordinance, the PZB has the authority to recommend that the City Council approve, approve with
modifications, or deny the above-mentioned amendments. City Council has final authority on the
proposal.
Chairman Szabo swore in Bernard Citron, of Thompson Coburn LLP and Jason Cary, CFO of Greater
Family Health
Mr. Citron said that he’s representing Jason at Greater Family Health, as well as the property owner of
The Oaks shopping center, however the representative from The Oaks was not able to make it to the
meeting this evening. As staff mentioned, medical uses are filling spaces in shopping centers that are not
being filled. These uses fill storefronts, but also bring in traffic. For example, people go to the doctor and
then they go to the grocery store. This is the way that we used to live. People visiting the medical clinic
also see the other uses in the shopping center and this bring further traffic to the center.
Mr. Citron stated he believed staff was willing to bring this case forward because there is a recognition
that this can be a positive use. Mr. Citron and the petitioner understand that City wants the sales tax, but
right now, that sales tax is not being generated with these vacant spaces. Shopping centers are being torn
down in local communities like Old Orchard, Golf Mill and Vernon Hills. In their place, these
communities are putting in housing. In addition, there are studies that medical uses are actually needed in
these shopping center locations, as Jason will present.
Jason Cary – CFO of Greater Family Health described the history of the organization, founded in 2009.
They have 11 health centers and he’s opened 10 of those. These are federally supported/qualified health
centers, and they receive this support in areas where there is a need. They ran a market analysis and this
Des Plaines has the greatest need in any location surveyed in the study.
Out of the 11 health centers that they operate, 4 of them are in retail settings.
There is a center operating in Palatine that is5,300 sq ft which is expanding into the space next door in
April with an additional 2,300 sq ft.
Another center operates in Franklin Park with over 10,000 sq ft of floor area. In Wheeling, 8200 sq ft
combined of space is used. The Streamwood facility has recently been expanded to 8800 sq ft.
The other seven centers are located in traditional, stand-alone buildings, in Dekalb, Sycamore, Elgin,
McHenry, and Hanover Park.
He described the size and space of this proposed build out. There is currently a signed lease contingent
on City entitlements. The proposal for the building includes12 exam rooms, with over7,000 sq ft to be
built out. The lease is for 11 years so they will be a long-term tenant.
He described the layout, with exam rooms and reception areas. It will include 12 exam rooms,2 offices,
shared charting area, an outside lab run by LabCorp for patients only being seen that day, a
reception area, a Breakroom and storage areas
Case No. 24-043-TA Text Amendment Citywide
7
They shared the staffing plan including 1 FT Family Practice Physician, 2 FT Advanced Practice
Professional (PA, Nurse Practitioner),1 PT Licensed Clinical Social Worker, Online Psychiatry Provider
(Tele -Psychiatry),6 receptionists,2 managers, and 5 medical assistants. Many of these workers would be
hired from the local area in Des Plaines.
Greater Family Health is the largest provider of primary health care in the US. They are the largest
community health care center in IL. Of all care, they are the 5th largest.
A report completed shows that two zip codes in Des Plaines have over 8000 people in poverty, and many
of these people travel to their other Greater Family Health centers, such as the one in Palatine.
If approved, they will put $1.6 million into the property to make it function like a health center. The last
use of this space was a gym, so there will be a large expense to add plumbing and update HVAC
equipment as well. They are applying to the federal government for operating support/expenses. They
believe there is a need in the community.
Bernard Citron stated there is a need for this facility today. He asked what other tenant would put over
$1M into any of these vacant properties. The center will to bring traffic in, but also improve properties.
This will bring people into the shopping center, people that will shop.
Member Fowler asked about the need for the 6 receptionists. Jason Cary stated some are needed for check
in/patient registration and some to check out people, it’s all part of their process.
Member Fowler asked about expansion in this space, are there other better locations?
Jason Cary stated that over 50% speak a language other than English as their primary language. This
location is ideal because it’s visible from the road and easy to see from the street. They can also expand –
with the 12 exam rooms, they will be set for quite some time.
Chairman Szabo requested clarification. This was Cardinal Fitness, not Planet Fitness. Any spaces
between this center and the stores to the north? Jason Cary stated the space goes all the way to the
Goodwill. However the space is not demisable into 2 locations that are less than 5,000 sq ft, due to the
way it was originally constructed.
Member Veremis asked if they are non-profit and tax exempt. Jason Cary states that yes they are a 5013c
non-profit. If they owned the space, they’d be tax exempt, but they don’t own it, so they must pay taxes.
Member Veremis asked if they believe that people in the area are going to ERs or going without services
without this center.Jason Cary: Advocate Lutheran General have done some needs assessments. Study is
that there is approximately a 16-17% unmet healthcare need. The ER is the only place that they get
service sometimes.
Member Ve remis stated there’s a lot of open space and the parking lot is huge, so to see something fill
that would be nice.
Jason Cary stated they’ve engaged an architect to draw plans. Then they intend to get permit at end of
year, then build out and begin to operate in August 2025.
Case No. 24-043-TA Text Amendment Citywide
8
Chairman Szabo complimented staff on the report.
Member Weaver stated he believes the project is commendable, but we’re not asked to approve this
business as a Conditional Use but to consider a Text Amendment that will allow that with three options:
allow any office facility over 5,000 sq ft in the C-4 District, allow the medical exemption that is being
requested or “do nothing” alternative. It seems that the intent was that we were concerned with foot
traffic – retail would fill with more foot traffic and there’d be synergy. Retail is dying and people are now
working from home. His recommendation is that we move forward and recommend this medical to City
Council, but then also consider the others that are in the Office definition. He believes Des Plaines is out
of sync with other communities because of the 5,000 sq ft limit. Weaver states he is in favor of this
proposal.
Chairman Szabo states that he hopes there are more cases like this. There are no more dressmakers or
other small shops to go into a shopping center like this. The times have changed.
Member Veremis says places like Hallmark were once there but are no longer.
Member Bronakowski asks staff if they are aware of other recent inquiries for uses in this shopping center
that are currently classified within the office definition.
Senior Planner Redman : states she knows the dentist came forward looking for a location but they were
able to choose a space less than 5,000 sq ft that was not contiguous with any other Office uses, and
thereby were permitted.
Member Bronakowski asked if staff have seen any certain types of businesses going into similar shopping
centers in other towns. Senior Planner Redman stated that staff would have to do more research to know
what businesses are commonly moving into these centers, but we know that medical office uses are.
Chairman Szabo states these modernizations to the code are needed.
A motion was made by Member Weaver and seconded by Member Fowler to recommend approval
to the City Council.
AYES: Weaver, Fowler, Bronakowski, Saletnik, Veremis, Szabo
NAYES: None
ABSTAIN: None
***MOTION CARRIED***
Szabo initially adjourned with voice vote at 7:35 PM, but resumed meeting at 7:38 PM. Member Fowler
asked a question about the Masonic Temple at Prairie and Graceland and the zoning sign in this location.
Senior Planner Redman responded that it is a request for a conditional use and parking variation for a
proposed church.
Chairman Szabo asked where parishioners would park. Senior Planner Redman states it’s not her case, but
believes it would be all street parking for the proposed church.
Case No. 24-043-TA Text Amendment Citywide
9
Member Fowler asked about if anything is going across the street, where the open parking lot currently is.
Senior Planner Redman stated that yes, staff recently received application materials for the Prairie and
Lee development, which includes that parking lot. This follows the workshop that took place earlier this
year.
Chairman Szabo asked staff if it will it be the same developer as at the Workshop? Senior Planner
Redman stated yes.
Member Fowler asked about Journal and Topics demolition.
Assistant Director Johnson stated they are working on a few final items, such as temporary lighting, but
they are making progress towards the demolition.
Member Weaver asked about any activity at the former Olivetti’s.
Senior Planner Redman stated they are reviewing plans, but no specific user of the space is known.
Member Fowler stated the former Leonas’ had the cannabis proposal in the past, and she wishes that
could have gone forward. Chairman Szabo responded that cannabis retail seems to go into the large
shopping spaces, like the space at the former Little Villa restaurant. Member Fowler speculated that larger
properties may possibly needed for security.
ADJOURNMENT
Chairman Szabo adjourned the meeting by affirmative voice vote at 7:43 p.m.
Sincerely,
Ryan Johnson/Recording Secretary
cc: City Officials, Aldermen, Planning & Zoning Board, Petitioners