Lease payment delay extension sought

A group that hopes to convert the former Libertyville High School and Jackson Gym into a community center is asking for more time to raise funds.

Brainerd Community Center Inc., which subleases the buildings from the village, is seeking three more years before an initial payment of $250,000 would be due.

“We believe the extended grace period is needed to permit further development of community support,” Brainerd president John Snow said last week in a letter to Mayor Terry Weppler and the village board.

Village officials are scheduled to consider the matter at the regular meeting beginning at 8 p.m. Tuesday at the village hall, 118 W. Cook Ave.

In late 2006, the village signed a 50-year lease with Libertyville-Vernon Hills Area High School District 128, which owns the buildings at Route 176 (Park Avenue) and Brainerd Avenue just south of downtown.

Knowing that fundraising for the multimillion dollar community center would take a while, the lease was structured with a lengthy grace period so all parties could assess the situation.

“The primary reason is we think we won't have the payment on the due date next July,” Snow said Monday. The extension being requested is to July 2, 2014, which should be enough time for the economy to improve, Snow said.

Information provided by the village says the Brainerd group owes the village an initial payment of $250,000 by July 2, 2011.

However, Snow said the initial payment due to the village actually is $300,000 and $50,000 per year thereafter until the entire $1.25 million lease amount is reached.

The village must pay the school district $250,000 by Dec. 1, 2011, and then $50,000 per year through 2031.

If the village agrees an extension would be worth pursuing, the question then would be up to District 128 officials.

In a brief discussion last month, the school board learned that asbestos removal could cost $350,000 and demolition could cost an additional $350,000. District officials said they support the Brainerd group, but wanted demolition estimates available in case the effort falls short.

“We've told them we're open to hearing what their proposals are,” Pat Groody, school board president, said Monday.

The community center group has held several fundraisers and raised about $20,000 this year, according to Jim Moran, vice-president. Funds have been spent on repair and maintenance.

“The economic climate obviously has changed dramatically,” since the lease was signed, Moran said Monday. ”It seems to me, they're (school board) wiling to be flexible if we can make a case for it.”

The group this year has been more visible than before and intends to step up marketing while continuing to pursue grants.

If the village is unable to make the first payment it can end the lease by Dec. 1, 2011, and no payment would be due.

If within six months of that action the school district decides to demolish the buildings, the village would be responsible for any demolition amount more than $300,000, according to terms of the lease.