Firm offers $5 million for Dist. 59 properties
A Mount Prospect developer/general contractor has bid $5 million for Elk Grove Township District 59's properties on Arlington Heights Road in Arlington Heights.
Red Rocks 4, LLC, a subsidiary of Nicholas & Associates, is proposing some type of commercial development or commercial-residential mix on land that now holds the school district's administration building at 2123 S. Arlington Heights Road and the neighboring vacant property that once contained Wellington banquets.
It was the only bid received after the district initiated a sealed bid process in April.
The district plans to use proceeds from a sale to help fund construction of its estimated $12.3 million administration center at 999 Leicester Road in Elk Grove Village. Reserve funds would be used to pay the balance of costs.
The school board voted 6-0 Monday to accept the bid, subject to negotiation of a sales agreement and legal review sought by board member Tim Burns, who abstained from the vote.
Burns questioned the deal since Nicholas & Associates has served as the district's project manager for several building projects since 2010, including the early learning center addition to Holmes Junior High School last year. The firm has received $34.6 million in contracts, including money passed through Nicholas & Associates and paid to subcontractors.
"It seems very questionable to me that a company that does no-bid work for the district now comes in with the only bid for the property under a different name, but same phone number," Burns said. "This stinks to me."
Nick Papanicholas, president of Nicholas & Associates, said Tuesday his company is interested in the District 59 properties because the location is a good spot for redevelopment. His company's interest is no different from properties it has purchased and redeveloped over the last decade across the Northwest suburbs, he said.
"We'll be the construction manager for District 59 whether they accept the bid or don't accept the bid," Papanicholas said. "We have no bearing on any of that and there is no interaction between any of it. It was just us doing the normal course of business."
Papanicholas said his company often has used different names for different redevelopment projects. There are no firm plans for what might be constructed on Arlington Heights Road, other than something with a commercial and/or residential use, he added.
Pending the legal review, District 59 would begin negotiation of a sales agreement over the next 60 days. A final deal would be brought back to the school board for approval.
Also at the school board meeting Monday, board members continued their dispute over the cost and design of the proposed two-story, 40,000-square-foot administration building. Burns and Mardell Schumacher objected to a two-story open common area behind glass windows in the front of the building, to be used as a collaboration space for staff.
"I don't think the glass makes it look like an office building. It makes it look more like a country club building or a spa," Schumacher said. "The whole area is wide open. It's wasted space, which is costing us a lot of money."
Board Vice President Janice Krinsky disagreed, while praising Arcon architects for their design.
"It's not the Taj Mahal. It's not extravagant," Krinsky said. "It's exactly what we need right now. It's not about future needs. It's about today's needs."
Rick Cozzi, a principal with Arcon, said some costs could be reduced by using smaller bricks throughout the building construction.
The district plans to begin building in October and open in July 2017.