Roeser: East Dundee defaulted on office building sale

Businessman Tom Roeser is at odds with East Dundee after he says village officials defaulted on a promise to purchase a remaining office unit in a building he refurbished.

In a letter sent to all East Dundee residents this week, Roeser called for new village leadership, saying officials "avoided discussing their commitment or an alternate resolution" regarding the former Summit School building at 611 E. Main St. Roeser said he had been trying to contact Village President Lael Miller and Village Administrator Bob Skurla for months but hadn't received a timely response.

"What type of leader avoids problems or does not respond to emails?" he said in the letter. "What type of leader does not keep a commitment? ... You and your village deserve good leadership. There is a serious flaw in the ones you have."

Roeser, president of Otto Engineering in Carpentersville, has partnered with East Dundee for years and spent millions investing in downtown redevelopment.

After a previous developer bailed on the Summit School project, Roeser purchased the building two years ago "as a favor," he said. He gutted it and turned it into six office suites, two of which were sold to Dundee Township for the supervisor's and assessor's offices.

The village agreed to market the remaining office space to potential buyers and buy back any units that did not sell, Miller said.

When Roeser asked officials to fulfill that commitment, Miller said, the village obliged. East Dundee purchased the property - which includes three assigned office units - last year for roughly $1.7 million, according to a commercial sales contract with Otto Engineering.

At the time, Roeser was in the process of seller-financing the fourth and final unit to a buyer. Village officials refused to buy out the loan, saying they could only purchase property, Miller said.

But the buyer has since backed out of the deal, and Roeser said he believes the village should now buy back the final unit in full, as per their initial agreement. He first requested $225,000 but later told officials the unit should be worth around $265,000.

Officials did not reply to Roeser's emails sent in December and February, he said, though Miller said they were "working on a solution."

Three days after bringing the issue to a village board meeting last week, Roeser said he received a call from Miller, at which point he asked for a written response by Monday.

In that response, Miller said the sales contract executed last year committed East Dundee to purchasing the property exclusive of three units, meaning the village is not held responsible for purchasing the last unit from Roeser.

"We do not dispute that the Village of East Dundee agreed to 'make you whole' for all expenses you incurred in connection with the acquisition and rehabilitation of the referenced property which, in fact, the village has done," Miller's letter said. "It was understood and agreed that you had sold said units and had not disclosed any of the terms of any said sales to the village. ... We believe that the executed contract evidences the village's position that your allegations are met without merit."

Roeser responded saying his primary concern is the village's "failure to respond to important correspondence."

"It is irresponsible," he said to Miller. "To hide behind a 'You did not disclose the terms of the sale' is reprehensible. Please complete your obligation."

The controversy is unlikely to put an end to Roeser's investment in East Dundee, he said. "But I will not do anything for them without getting it in writing," Roeser said. "That's a very different relationship with them than what I've had."

He added that he worries officials' lack of commitment may discourage other developers from investing in the village.

"A man's word is his bond," Roeser said, "and if you can't trust your government, who can you trust?"