Condo developers want $4.7 million more from Wheeling
To date, the village of Wheeling has pledged $10.5 million to the Smith family toward the construction of their Prairie Park condos.
The sum once sparked outcry at village board meetings. On Monday night, the response to the developer's latest request, was much different.
The Smiths want up to $4.7 million more in tax increment financing dollars toward a fifth condo building, the last in the subdivision off Wolf Road according to plans dating back to 2003.
If approved, the village's funding toward the development would reach as much as $15.2 million. Trustees on Monday night unanimously approved a broad, nonbinding outline of a possible agreement with the family without any comments before their vote.
Village President Dean Argiris and several trustees said they're eager to see the eight-story, 70-unit building get off the ground. But Mary Papantos isn't convinced the deal is worth it.
The frequent critic of the village's Prairie Park incentives will be sworn into the third seat on the board May 4, although write-in candidate Joe Vito plans to file a lawsuit against the Cook County clerk's office demanding that it count 33 ballots that would give him the lead.
“It's just too much,” Papantos said Monday. “And what are the returns? The purpose of TIF is to spur development, and the only development we've spurred around there is Prairie Park.”
In a TIF district, as development boosts property values, the village funnels the extra tax revenue that otherwise would go to taxing bodies such as schools into a special fund that can be used to pay for improvements to the area for up to 23 years.
Prairie Park currently generates about $1.4 million annually in property tax increment.
The Smiths would get the TIF district money on a “pay-as-you-go basis,” or once condo units are sold. In exchange for the money, the village is demanding about 7 acres currently owned by the developer west of the subdivision.
The village would get the land for free, while the Smiths would have exclusive development rights for 30 months.
“The point is that it's collateral to make sure that we're protected on the deal,” Village Manager Jon Sfondilis said.
The village also wants to amend the boundaries of its North TIF District to include the 7 acres. Doing so won't require the approval of the other taxing bodies.
The developer is expected to come back to the board with a draft of the deal in four to six weeks. The Smiths must also prove the estimated $28 million project would not be economically feasible without the TIF district money.
Argiris and several trustees say they support reimbursing the family for a portion of the project's cost, although they say more study has to be done.
“We're getting 70 units in there,” Argiris said, “demographics that we need.”
Most of the condo residents are empty-nesters from the North Shore, a group of shoppers with disposable income that could lure retailers to Wheeling, said Trustee Ray Lang.
He previously voted against Prairie Park deals, including pledging about $6 million in 2010 when the family said the development was on the brink of foreclosure.
At the time, it didn't make sense to put TIF district money into residential projects during the housing market crash, Lang said.
“But in this case, I think it will pay off in the long run because it will bring the people in that will support solid retail,” he said.
Officials also said there's already strong interest for new units. The developer has told the village at least half are under contract to be sold, Sfondilis said.