Elk Grove Township sells two properties for $1.1 million
Elk Grove Township has sold its headquarters and youth services building for a combined $1.1 million as part of an ongoing effort to downsize.
Township board members accepted a bid of $870,000 from Arlington Heights-based HVAC Equipment Sales for the headquarters property at 2400 S. Arlington Heights Road. Meanwhile, DiMucci Companies made a $245,000 bid for the youth services facility at 401 W. Golf Road in Mount Prospect, next to the real estate developer's Golf Plaza II shopping center.
DiMucci bid on the property once before. In February, the township rejected its bid of the same amount, arguing the company had informally offered $100,000 more when previously approaching officials about buying the land.
Township Supervisor Mike Sweeney — who had panned the company for its initial offer — said the township was correct to rebid the property and make it more marketable by addressing environmental concerns in an attempt to get a higher price.
Under the contract with DiMucci, the township can lease the youth services building at least until March 2019. The cost will be free until September 2018, then increase to $1,500 a month the next three months and $3,500 monthly the final three months.
“We took a shot at making it more marketable,” Sweeney said. “The market spoke, and I think the silver lining in all of it is the lease-back terms take us through the time when we have the new building.”
The township is consolidating its operations in the former Elk Grove Village public works building at 600 Landmeier Road. It will acquire the public works property through a land swap with the village. In return, the village will get a township property at 711 Chelmsford Lane, where a nonprofit day care center currently operates.
Operations will continue at the existing township properties until the public works facility is converted to accommodate the township. That means services provided at the headquarters won't be moving anytime soon either.
The headquarters sold for about 9 percent less than the appraised value, with HVAC Equipment Sales submitting the only qualifying bid offer, Sweeney said. The contract also includes terms allowing the township to lease back the property.
With both properties sold, the township's focus will turn toward implementing a day care voucher system. Because the township is selling the building where the Elk Grove Township Agency Daycare Center operates, it's creating a system to give grant money to families who use those services.
The voucher system will allow qualifying families to be reimbursed for costs at other day care centers.