THE JOURNAL & TOPICS NEWSPAPERS | FRIDAY, MAY 16, 2008
Village Contributing Cash Is Nothing New
By RICHARD MAYER
Journal Reporter
Over the years, the Village of Mt. Prospect has spent approximately $1.3 million on land acquisition for redevelopment projects in the downtown area.
And with the possibility of the village approving massive redevelopment of the downtown "triangle"---and contributing $9.5 million in taxpayers' money to the project---some have asked what Mt. Prospect has spent on other developments over the years.
During the May 6 Village Board meeting, Trustee Paul Hoefert announced what the village has paid in the past to develop the Residences, Lofts and Shops, Founders Row and the Emerson building.
The village contributed $658,679 and Norwood Builders dispensed over $3,585,630 to build Residences at Village Centre, a three-building condominium community with 205 homes including first level patio homes. That development was constructed in 1998.
Next to the Emerson are the Lofts and Shops, built in 2000. The five-story building features shops and restaurants on the ground floor and 34 condominiums above. The village contributed $653,065, while Norwood Builders spent $748,355 to complete the project.
Construction started on the Emerson at Village Centre, Norwood Builders' community of approximately 54 condominiums and duplexes, in 2005. Norwood poured $821,695 into construction. The village's contribution came in the form of demolition and streetscape work on the site, the former location of Village Hall, in the amount of $251,600. Approximately half of the development has been sold so far.
Founders Row, the 14-unit luxury rowhome development across from the library, was first constructed in 2007. The village supplied $51,850, while Norwood Builders spent $1,053,150 for the project that is still in the first of two phases.
With the proposed re-development of Sub-Area 1, or the "small triangle," bounded by Main St., Northwest Hwy. and Busse Ave., the village is contributing $3.5 million in land acquisitions, while Heimbaugh Capital Development Corp. will contribute $3,875,000 of owned property.
Compared to the other developments, this proposed development would consist of Heimbaugh being responsible for most of the costs including of demolition, streetscape work, public parking and site clean up.
Director of Community Development Bill Cooney said, "Many people believe the village is the main contributor to the project, but in actuality, Heimbaugh is contributing more property in addition to Heimbaugh ensuring financing for the project."
Village officials have reiterated they will not transfer ownership of their properties until the developer has obtained senior financing on a construction loan for the project.
Heimbaugh will be required to have between 30%-50% of pre-sales of the residential units before they could obtain that financing. Therefore, the village would not transfer its properties until the project is "clearly" moving forward.
A final reading on the project is scheduled for Tuesday.