Des Plaines project approved, but not before mayor scolds alderman
Des Plaines officials have paved the way for construction of a $28 million development on a long-blighted parcel of city-owned land at Mannheim and Higgins roads.
But the approval came only after one alderman asked the vote be delayed to consider a late offer from another developer, and the mayor scolded him for nearly derailing the project.
Alderman Jim Brookman said at Monday's city council meeting he received information late in the day from a developer who suggested a different ownership model for the project. The proposal could generate an additional $7 million for Des Plaines and significantly reduce the amount of incentives the city is putting toward the project, according to the information Brookman said the developer provided.
Mayor Matt Bogusz said the developer Brookman referenced was contacted in March 2015 about submitting a proposal but chose not to.
"What you're doing right now is not participating in good faith with the developer in which we've been working with," Bogusz told Brookman. "It is my intention and the intention of the majority of the council to do what's right for the residents of Des Plaines, which is building the highest and best use on that property and retiring our debt as fast as possible."
Brookman sought a two-week delay to the next council meeting to consider the new information.
"I think we need to act what's in the best interest of the city," Brookman said. "I'm frankly not that concerned about our obligation to the current developer. Our obligation is to the residents of Des Plaines and to make the best deal we can for them."
A vote to defer failed 5-3. Aldermen then voted 7-1 to approve a $1.5 million sale of the land and an economic incentive agreement worth $7.5 million in the form of tax increment financing dollars and rebates for sales and hotel tax revenue. Brookman cast the lone "no" vote.
The 4.5-acre parcenl is located on the northeast corner of Mannheim and Higgins. The developer, Pearlshire/Bask Development Group, plans to start construction in June of a gas station with convenience store and car wash, and a free-standing restaurant, which has been proposed as a Bennigan's.
Construction on a five-story, 120-150 room hotel is scheduled to begin in September. The hotel will have a national brand name, and it's possible a restaurant will be located inside, the developer says.
Also this week, the council voted to give Pearlshire/Bask an option to purchase for $600,000 an adjoining 3.7-acre vacant parcel that Des Plaines recently bought from the Rosemont Park District. That could allow for a larger development, and potentially parking and stormwater detention space.
The gas station and restaurant are scheduled to be complete by November, the hotel in March 2017.