Naperville to approve Children’s Museum lease

The DuPage Children’s Museum likely will stay at its Naperville location rent-free for five years before the city begins to recoup the $3 million it spent in October to purchase the site.

Council members Tuesday are expected to approve a 20-year lease agreement with the museum that, beginning in the sixth year, pays the city annual rent of $62,056 that will increase yearly based on the Consumer Price Index.

The lease would prohibit the museum from requesting or receiving any Special Events and Cultural Amenities funds and grants the city ownership of 57 parking spaces for commuter uses. The museum board also would be required to provide the city with audited financial statements.

In October, the city purchased the museum property at 301 N. Washington St. for $3 million as part of an intergovernmental effort whereby the state contributed $1.94 million, private donors contributed roughly $700,000 and DuPage County provided $250,000.

The remainder came from a roughly $3.25 million write-down by Chase Bank, which held the museum’s $9.4 million note.

City Manager Doug Krieger said the $62,056 figure was arrived at by taking about one-third of the annual $195,000 payments the city will make to pay off the $3 million. The city also expects to recoup about $71,000 a year from the additional parking revenue.

Krieger said the city is willing to essentially eat the remaining $62,000 because it paid less than half of the property’s value for what officials consider to be a prime piece of real estate at the north entrance to the downtown area.

Museum spokeswoman Alison Segebarth said the museum board has approved the lease agreement.

“We are very pleased about the whole outcome here and achieving our long-stated goal to be located on public land,” she said. “This lease secures our home in Naperville for a long time to come.”

The council will meet at 7 p.m. Tuesday at the Naperville Municipal Center, 400 S. Eagle St.