THE JOURNAL & TOPICS NEWSPAPERS | WEDNESDAY, MARCH 22, 2006
Council Backs Bank Loan To PRC
By DWIGHT ESAU
Journal Reporter
The Baldacchino lawsuit just keeps rubbing sandpaper on Park Ridge's face, over and over again.
While resident Charles Baldacchino persists with his complaint against the city regarding Uptown redevelopment and also with commentary about it at city council meetings, an angry city council fights back with promises to support PRC Partners, Uptown redevelopers, with loan guarantees, at potential public expense.
After holding a private negotiating session with Baldacchino and his lawyers on Mar. 8, city officials and Baldacchino had another face-to-face confrontation about Uptown at the city council meeting Monday night (Mar. 20).
After a 10-minute statement by Baldacchino sharply critical of the city in the Target Area Two redevelopment project, which included threats of "at least two more lawsuits," a majority of aldermen decided to move the redevelopment project forward by guaranteeing a $4 million loan to PRC by LaSalle Bank.
The bank wanted the guarantee as a protection against possible adverse developments in the Baldacchino lawsuit, which is pending in court on appeal. Baldacchino contends that the Uptown redevelopment agreement between the city and PRC is flawed and illegal regarding the processes used to create it.
The council's action, approved by a 9-4 vote, extends an earlier loan guarantee covering phases I and II for Uptown to phase III. The extension provides that the $4 million be reduced to $1 million upon the first payment of rent by the retail specialty grocery store whose building is partially under construction in the Phase II area. This occurrence is expected to occur in September.
The guarantee will disappear completely once a retail tenant has taken possession of any portion of the phase III parcel.
LaSalle officials reportedly told the city and PRC that they would convey a construction loan for phase III buildings to PRC if the guarantee was approved.
Voting no for various reasons Monday night were Ald. Jeannie Markech, Don Crampton, Mary Ryan, and Rex Parker. Markech and Ryan wanted some concessions from PRC in exchange, and Parker said no because PRC has recently taken 15,000 square feet of retail space out of the project and he wants it reinstated.
Ald. Frank Wsol was absent Monday night, but he submitted a written statement in advance, indicating that he, too, wanted some concessions from PRC.
Construction on phase III has been delayed several months by the lawsuit.
Ald. Kirke Machon, Mark Anderson, Mayor Howard Frimark, City Mgr. Tim Schuenke, and City Attorney Everette Hill met with Baldacchino and two of his attorneys on Mar. 8. Monday night, the two sides gave completely different reports on what took place.
"There was no good faith negotiating, n offer and counter-offer, no listening and hearing," said Baldacchino. "The guarantee, like the redevelopment agreement, is illegal. The city is stonewalling and calling meetings and then not negotiating in good faith. If this guarantee is approved, I will file at least two more lawsuits against it."
Without saying specifically what the discussions were at the meeting, Machon said. "Mr. Baldacchino has a vision for how the city ought to be governed, which nobody apparently shares with him. Our job is to move forward with a project that I personally promised my constituents that I would work to make happen."
"We can't govern the city by lawsuit, we have to do what we believe is in the best interests of our citizens," said Ald. Joe Baldi.
"I ran on a platform of getting more retail for Park Ridge," said Ald. Rex Parker. "Uptown redevelopment does that, even though I believe it should be more. I want redevelopment to happen in Uptown, but not at the expense of 15,000 square feet of retail. "
Concessions sought by Markech included a freeze on the cost to the city for the parking garage to be built into the phase III area, a minimum guarantee of profit sharing of $400,000, and deferring filing of property tax assessment complaints, unless vacancy of retail exceeds 10 percent.
"We are putting the taxpayers at risk, and that's wrong," Markech said Monday night.
"This matter could have been referred to the city's negotiating team (the aldermen who met with Baldacchino and the Mayor)," Ald. Rich DiPietro said. "I'm sorry I didn't think to do that Monday night. That way, we could have discussed these possible concessions properly in a committee meeting. There were so many concession requests and other ideas flying around Monday night that I believe aldermen were confused. All we could do was vote the guarantee amendment up or down. Now, we just have a guarantee, with no consideration from PRC."