AGENDA SPECIAL FINANCE COMMITTEE Village of Hoffman Estates September 21, 2015
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1 AGENDA SPECIAL FINANCE COMMITTEE Village of Hoffman Estates September 21, 2015 Immediately Following Transportation & Road Improvement- Board Room Members: Gary Pilafas, Chairperson Anna Newell, Vice Chairperson Michael Gaeta, Trustee Karen Mills, Trustee Gary Stanton, Trustee Gayle Vandenbergh, Trustee William McLeod, Mayor I. Roll Call NEW BUSINESS 1. Request approval of a new business license category for Food Manufacturer and Distributor (Wholesale). II. Adjournment The Village of Hoffman Estates complies with the Americans with Disabilities Act. For handicapped assistance, call the ADA Coordinator at
2 COMMITTEE AGENDA ITEM VILLAGE OF HOFFMAN ESTATES NB 1 SUBJECT: MEETING DATE: COMMITTEE: FROM: Request approval of a new business license category for Food Manufacturer and Distributor (Wholesale) September 21, 2015 Finance Mark Koplin/Clayton Black Bev Romanoff/Patricia Cross REQUEST: BACKGROUND: Request approval of a new business license category for Food Manufacturer and Distributor (Wholesale). Native Foods Wholesale, LLC approached the Sears Centre Arena (SCA) with a request to rent the SCA kitchen facilities when not in use by Levy Food Service. It was actually Levy, having exclusive use of the kitchen pursuant to its Commission Fee Agreement with the Village, which put Native Foods in contact with the Village and SCA. It is anticipated that Native Foods will enter into a license with the Village of Hoffman Estates for use of the kitchen for manufacturing and wholesale distribution of vegan food products when the kitchen is not being used by Levy. Because Levy presently has the exclusive use of that kitchen under its Commission Fee Agreement with the Village, it will be necessary for Levy to consent in writing to the proposed Native Foods license. Among other provisions, the license will provide for terms of use, standard insurance requirements, a six month term with a six month renewal option, and rent totaling $80,500 for the first year. Because there is no existing business license category for this particular use, the Village Clerk, Assistant Corporation Counsel, and staff are proposing wholesale manufacturer use language and amending the Village code to include the suggested license. DISCUSSION: Native Foods has 26locations nationwide, including five in the City of Chicago, a fast/casual restaurant serving made-from-scratch, 1 00% plant -based, chef crafted vegan cuisine. The company is the largest U.S. chain of restaurants serving strictly vegan food and intends to open an additional 200 locations over the next five years. The Native Food's organization approached Levy about utilizing the kitchen at the SCA to manufacture and distribute food to their restaurants in the region at wholesale. The premises would be operated as a commercial type kitchen where Native Foods staff would manufacture vegan food products and distribute it in bulk at wholesale to suppliers at times when the Arena's event schedule permit. It will be up to Levy and Native Foods to work together to work out the details of that shared kitchen schedule.
3 Special Finance Committee -2- September 21, 2015 DISCUSSION: (Continued) An amendment is being proposed to Chapter 8 (Licenses) of the Village code to add a new license, including a detailed definition. Assistant Corporation Counsel has drafted a revision to Section 8-2-1, setting the annual fee for the license at $500 and created a new Section to add and define a new business license category for on-site food manufacturing and distribution. This will allow Native Foods to commercially operate and provide vegan food products for distribution at wholesale to their restaurants, suppliers, and distributors. FINANCIAL IMPACT: Native Foods will pay monthly rent to the SCA for use of property and equipment in the Village's SCA kitchen for wholesale purposes distribution. It is anticipated that average costs to the Village in connection with this license and Native Foods' use of the SCA kitchen will be nominal. RECOMMENDATION: Approval of a new business license category for Food Manufacturer and Distributor (Wholesale). Attachments cc: Craig Grimes, Native Foods Ben Gibbs (Sears Centre Arena) Yousuf Ahmed (Levy Food Service)
4 Native Foods Cafe Village of Hoffman Estates (Sears Center) September 2nd, 2015 Summa Attached is a summary of the business being executed at the Sears Center Kitchen. Native Foods Cafe 500 North Dearborn St. Chicago, IL Contact: Craig Grimes C.E.O. Office: Craig.grirnes@nativefoods.com Purpose Native Foods is a Fast Casual Vegan Restaurant chain doing business in Washington D.C., Virginia, Illinois, Colorado, Oregon, and California. Product being produced at the Sears Center Kitchen will include the production of (2) "plant based" meat alternatives. The two products being produced are: Wheat Seitan Soy Tempeh Distribution Native Foods will produce and package the Wheat Seitan and Soy Tempeh in accordance with HACCP approved specifications for pick up and storage by the local Sysco Food Distribution Company. The product will then be delivered by Sysco to Native Food restaurants for sole use by Native Foods Restaurants. Production Native Foods will employ sufficient prep cooks and supervisors to prep Wheat Seitan and Soy Tempeh at the Sears Center kitchen on non-event days and work in collaboration with Global Spectrum and Levy Restaurants to insure no disruption to the Arena's primary business. Hours will coincide under the collaboration of Global Spectrum with advanced scheduling. Pick up deliveries will also be scheduled in collaboration with Global Spectrum and Levy Restaurants to ensure no distraction or disruption to the Arena's operating event schedule.
5 ORDINANCE NO VILLAGE OF HOFFMAN ESTATES AN ORDINANCE AMENDING SECTIONS AND CREATING SECTION , FOOD MANUFACTURER AND DISTRIBUTOR (WHOLESALE), OF THE HOFFMAN ESTATES MUNICIPAL CODE NOW, THEREFORE, BE IT ORDAINED by the President and Board of Trustees of the Village of Hoffman Estates, Cook and Kane Counties, illinois, as follows: Section 1: That Section 8-2-1, FEES, of Article 2, LICENSE FEES, of the Hoffman Estates Municipal Code be and is hereby amended to read as follows: Section ~ For Licenses to operate the following businesses, the fees listed opposite the named business shall apply: PER YEAR A. Business Licenses Alcoholic Liquors Class "A" License Class "AA" License Class "AC" License Class "B" License Class "C" License Class "D" License Class "DD" License Class "E'' License Class "F" License Class "G" License Class "H" License Class "f' License Class "LC" License Amusements Amusements, General Amusement Devices Billiard and Pool Halls Bowling Alleys Concerts Dart Room Golf Courses & Miniature Golf Courses Ice Skating Rinks Jukeboxes Lotteries Motion Pictures & Theatricals Parades Roller Skating Rink Shooting Galleries Sports Complex Video Gaming Terminal (per terminal) Terminal Operator Foods and Beverages Automatic Food Vending Machine Bakeries Cafeteria Drive-In/Carry-Out Restaurants 2, (additional) 1, , (two days) 2, , (additional) 9 (additional) 6, , (one day) 1, , (additional) (per device) (per table) (per alley) (per performance) (per alley) (or $!0 per day) ! (per machine) (per machine- items $.50 and over) 1.00 (per patron chair)
6 -2- Food Dealers If fish or meat is sold Food Deliveries Food Manufacturer and Distributor (Wholesale) Food Service Establishments Permanent Accommodations under 100 Accommodations from 101 to 500 Accommodations from 501 to 1000 Accommodations (including seats in an Arena) over 1000 Banquet Mobile Temporary Restaurant Caterer Outdoor Food Service Establishment Ice Cream Parlor Ice Cream Manufacturers Milk Retail Food Stores Less than 1,500 square feet 1,501 to 4,000 square feet over 4,000 square feet Health and Care Facilities Hospital Nursing Home Sheltered Care Facility Intermediate Care Facility Skilled Nursing Facility Veterinary Hospitals Mobile Health Facilities Ambulance Service Day Care Center Congregate Care Facilities Merchants (Products) Auctioneers (annual or $10.00/day) Automobile Accessories Automobile Sales Lot Drug, Chemical or Paint Stores (Wholesale) Full Service Station or Secured Self-Service Station Non-Secured Self-Service Station Firearms, Airguns and Explosive Toy Florists, Greenhouses Fuel Oil Storage Stations Garage Sales No Fee (on site) Going Out of Business Sale Hardware and Paint Stores Junk Dealers (per day) Machine Shops Resale Business Seasonal Outdoor Sales Solicitors (for profit) (not for profit) Tobacco Product or Electronic Smoking Device Dealers Items (cannabis & drugs) Merchants (Service) Carters Cleaners and Dryers Plant on Premises Plant Not on Premises (per vehicle) , (per patron chair) (per vehicle) ,
7 -3- Contractors Department Stores Exterior Drop Boxes For Profit Schools Hotels Housemovers. Houseraisers & Sharers Insurance - Foreign Fire Insurance Companies Itinerant Merchants Laboratories Landscape Material Processing Laundries Plant on Premises Plant Not on Premises Coin Operated Laundry Machines Laundry Vehicles Motor Vehicle Repair Shops Pet Shops and Kennels Photographers Public Passenger Vehicles (Business) Public Passenger Vehicles Public Passenger Vehicle (Chauffeurs) Refuse Collectors Tanning Facilities Wearing Apparel Stores Self-Storage Facilities Less than 50,000 square feet 50,001 to 100,000 square feet more than 100,000 square feet Special Licenses: General License General Business Premises License Sguare Feet I to 1,999 2,000 to 3,999 4,000 to 5,999 6,000 to 7,999 8,000 to 9,999 10,000 to 14,999 15,000 to 19,999 20,000 to 24,999 25,000 to 29,999 30,000 to 39,999 40,000 to 49,999 50,000 to 74,999 75,000 to 99, ,000 to 199, ,000 to 499, ,000 or greater (per box) 6.00 (per room for rent) Statutory 2% (per employee) 1, (plus $3/unit) (per vehicle) (plus $10 background check if necessary) (per unit for first two units, $50 for each unit thereafter) (for first unit & $10 for each additional unit) $ (plus $75 for each additiona!ioo,ooo sq. ft. or portion thereof)
8 -4- General Business Premises License (Otherwise Licensed) Square Feet I to 9,999 10,000 to 29,999 30,000 to 99, ,000 to 499, ,000 or greater Special Events License Home Based Business License Retail Sales & Service Helipads Special Use Antennas Wholesale Vehicle Auction House $ (plus $75 for each additional 300,000 sq.ft. or portion thereof) $ (plus applicable fees if license would otherwise be required) $1, There shall be a penalty applicable to all licenses listed in the Subsection A of 25 percent or $15.00, whichever is greater, for the renewal of a license purchased after the date such renewal license fee is due. An additional penalty of 25 percent of the original license fee or $15.00, whichever is greater, shall be assessed for each additional 30 days after the date such renewal license fee is due. B. Public and Private Swimming Pools. Public... $ Private... C. Animal License Fees: The schedule of animal license fees is as follows:!. Each Dog... $ Each Cat..... $5.00 Senior Citizens: The animal license fees required of citizens sixty-five (65) years of age and over shall be Two Dollars ($2.00) per animal, said discount not to exceed two (2) such animals per household. A penalty of $1.50 per month will be assessed beginning December 1 for animals that were eligible for licensing on November I of that year. D. Renewal. Any licensee may renew his license at the expiration thereof, provided that he is then qualified to receive a license, and has paid all other applicable business license fees and any other fees or monies then owed to the Village. The renewal privileges herein provided for shall not be construed as a vested right. Section 2: That Section , FOOD MANUFACTURER AND DISTRIBUTOR (WHOLESALE), of Article 5, FOOD AND BEVERAGES, the Hoffman Estates Municipal Code be and is hereby created to read as follows: Section FOOD MANUFACTURER AND DISTRIBUTOR (WHOLESALE) A. Definitions!. "Food Manufacturer and Distributor (Wholesale)" shall mean any Person engaged in the business of manufacturing food products within the Village of Hoffman Estates for distribution at wholesale.
9 -5-2. "Wholesale" as used herein shall mean the transfer of the ownership or title to tangible personal property in the form of manufactured food products to another for purposes of resale, other than to a consumer or end user which transfer is not subject to a retail sales tax. 3. "Person" means any individual, partnership, limited liability company, corporation or other legal entity. B. License required. It shall be unlawful for any Person to conduct business as a Food Manufacturer and Distributor (Wholesale) in the Village of Hoffman Estates without having first obtained a license therefor. C. Application. An application for a Food Manufacturer and Distributor (Wholesale) license shall be made in conformity with the general requirements of this Chapter relating to applications for licenses. D. Exemptions. No other or further business license as Food Deliveries (Section 8-5-6) shall be required nor fee paid where a Food Manufacturer and Distributor (Wholesale) license is secured. E. Regulations. Each Food Manufacturer and Distributor (Wholesale) shall comply with this Sec and with all applicable State laws and this Municipal Code, and the Village's Code Enforcement and the Fire and Police Departments, including the right of inspection before issuance of license. Section 3: The Village Clerk is hereby authorized to publish this ordinance in pamphlet form. Section 4: This Ordinance shall be in full force and effect immediately from and after its passage and approval. PASSED THIS day of, 2015 VOTE Trustee Karen V. Mills Trustee Anna Newell Trustee Gary J. Pilaf as Trustee Gary G. Stanton Trustee Michael Gaeta Trustee Gayle Vandenbergh Mayor William D. McLeod AYE NAY ABSENT ABSTAIN APPROVED THIS DAY OF, 2015 ATTEST: Village President Village Clerk Published in pamphlet form this day of, 2015.
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