THE JOURNAL & TOPICS NEWSPAPERS | WEDNESDAY, APRIL 30, 2008
'5 Corners' Purchase Alive
By TODD WESSELL
Journal & Topics Editor
The desire by some city officials to purchase a particular piece of property in the "5 Corners" Tax Increment Financing District (TIF) still has plenty of life to it despite the decision made several weeks ago not to formally appropriate city funds.
Revisions to a proposed contract authorizing the city to buy property owned by Stock Gears, Inc., 1401 Redeker Rd., are currently being written, according to City Attorney Dave Wiltse. Once completed and then forwarded to aldermen for review and possible approval, the estimated $1,050,000 purchase would proceed. If and when that happens, it would mark the first of what could eventually become a cascade of land purchases by the city to trigger redevelopment of at least some of the 70-acre area.
Despite strong opposition from many land and business owners in the 5 Corners area of Rand and River roads, Des Plaines aldermen created the TIF a few years ago. The purpose was to attract new tax-generating opportunities in the area that would not only generate funds for the city, but other local taxing districts such as Des Plaines Elementary School Dist. 62 and the Des Plaines Park Dist. Establishment of a TIF allows the city to deposit any future property tax revenue generated after the district was formed into a special city-controlled fund for a period of 23 years. Those funds can be used to pay for a number of TIF area improvements including buying land. The city has said that one of its roles is to help with the assembly of land in order to make it available to developers. However, to what degree and under what circumstances the city's involvement in the purchase of land has sparked a division among some aldermen and brought criticism from many property owners. Many of those land and business owners believe that the city has overstepped its boundaries in establishing the TIF. They contend that the TIF designation hampers their ability to sell their property if they so desire and could lead to the city's acquisition of their land by force using the powers of eminent domain.
Mayor Tony Arredia, who has voted twice against the city buying the Stock Gears property, said several aldermen have expressed reluctance in the city purchasing land in the TIF. They feel that such purchases should only be done under certain circumstances that would assist in the completion of property assemblage. Other council members, however, feel that because the Stock Gears property is available, the city should act.
TIF critics have said that city assurances that 5 Corners improvements would be "developer driven" means that potential developers---not the city---would buy property. In addition, they have expressed strong fears that the city will force the sale of some of the private property by using condemnation.
"No developer has come forward," said Arredia yesterday (Tuesday). He said that "a couple" of developers have expressed interest, but they are just in the planning process.
"They're serious. I think," said Arredia. As for the use of condemnation, Arredia said only under extreme circumstances such as the need to buy one or two parcels to complete a certain project assemblage.
Meanwhile, the city has had in its possession a draft resolution authorizing its purchase of the Stock Gears property---something its owner, Bruce Billmeyer, wants. In that proposed resolution, it states that aldermen decided on Feb. 19 in executive session to buy the property at a purchase price of $1,050,000, and that a contract to do so be prepared. The current owner would be permitted to remain on the premises for six months in order to relocate.
One of the draft contracts that's been prepared by the city states that the purchaser has delivered to the seller the sum of $100 as earnest money and that the parties acknowledge that the city is buying the property under "the threat of condemnation..."
Wiltse said he does not believe that the threat of condemnation still exists because amendments to the proposed contract are in the process of being drafted. It's believed that threat of condemnation language would provide a benefit to the seller by allowing him more time to complete his move. As for the anticipated changes, Wiltse said they could be forwarded to aldermen in May for consideration. City Council meetings are scheduled for Monday, May 5 and Monday, May 19. Wiltse added that two or three options exist for the city to determine how to pay for the purchase. He did not elaborate. Of concern among some aldermen and interested residents such as local activist Brian Burkross, is whether the city would overpay for the property. City Manager Jason Bajor said the city hired a company to perform an appraisal of the land about a year ago. City records obtained by Burkross reveal that the city paid a Chicago company $4,000 in August 2007 to conduct the property appraisal. Bajor would not disclose the appraised amount.