THE JOURNAL & TOPICS NEWSPAPERS | WEDNESDAY, MAY 24, 2006
Developer Seeks More Units
By DWIGHT ESAU
Journal Reporter
Six months ago, after nearly a year of debate and considerable controversy, the Heinz Group condo project at Greenwood Avenue and Northwest Highway in Park Ridge was approved by city officials.
It called for 50 units in two buildings at the intersection's southeast corner, to sell reportedly for an average price of $700,000 or more.
The city granted Heinz building height and density variations, over the objections of some of the neighbors living in the area. Heinz originally asked to build 58 units, but subsequent negotiations dropped that number down to an agreed-upon 50.
This past Monday night (May 22), Heinz was back in town, requesting that the Planning & Zoning Commission amend the project and add eight units back into it.
About 60 persons showed up, most of whom still oppose the project. The commission took 2 1/2 hours to listen to Heinz attorney Jack Owen and several of his witnesses support the request, and three residents make comments both in support of it and opposed.
The public hearing was continued until June 12, when many of the objectors are expected to have their say.
Heinz officials and an expert witness said they have done additional market research since they received city approval last December, and they now believe their 50-unit project is "not economically feasible."
"We have too many units of 2,000 or more square feet and that is too large," said Tim Heinz, son of John, the Heinz Group's President.
"We have over-anticipated the demand for units like this, and we need to re-configure the density to permit additional smaller units," said Owen. "The average price we were contemplating was $700,000 or more, while the average price for similar units in the Park Ridge area is around $400,000.
"This project is at the very top end of the Chicago area condo projects in terms of price," said a consultant the Heinz Group said it hired to help it conduct market research. "We have suggested to them that it is critically flawed the way it is. If they get this density increase to 58 units, it will bring their average unit square footage down to about 1,840 feet from 2,150. That is much closer to making their project feasible and successful."
He said several banks that have been contacted by Heinz for financing the project have expressed reluctance because the project is too expensive.
"This is not about adding profit, it is about making the project successful for Heinz and for the City of Park Ridge," said architect John Tinaglia. He added that adding eight units and increasing the number of small units will mean a decrease of 1,000 square feet in the building, but will not change the building's height or size in any way.
Commission member Richard Schmidt tried to obtain more specifics from the Heinz representatives about the economics of the project. "If this change is approved, will it give you more profit?" Schmidt asked. "The project is not feasible now, we are trying to make it more so," said the consulting expert witness.
"How much more profit will you make if this is approved?" Schmidt persisted. "We can't answer that question now," was the reply.
"We are not talking about more profit here, we are trying to make our units more salable," said another Heinz spokesman.
"I can't believe an empty nester in Park Ridge will pay $700,000 or more for a home, when the average sale price for a home in the community is $450,000," said one resident. "Are all of the former agreements about this null and void now? Are we going back to square one?"
Another resident who said he has lived in Park RIdge for 30 years, said he is interested in considering moving into the Heinz project when it is done, and he urged the request be granted.
Ken Balaskovits said more traffic studies should be conducted before this project moves forward.