Project can't happen without financing, developer says

Despite the economy, Pine Tree representatives still plan to move forward with their massive Rolling Meadows redevelopment project -- as long as city officials agree to kick in some financial help.

Peter Borzak, a principal at the commercial real estate company, updated city council members on Tuesday.

"We envision a pedestrian friendly area where people can have dinner and then take a walk," Borzak said. "It will be a gathering place."

Pine Tree Commercial Realty of Northbrook wants to build department stores, office towers, senior housing and at least one hotel on the site that includes 12 Oaks at Woodfield, formerly known as Woodfield Gardens. The complex is off Arbor Drive at Algonquin Road near I-90 and Route 53.

Everything currently on the site would be demolished to make room for the proposed project.

Pine Tree has contracts to buy 12 Oaks At Woodfield, two strip malls, and the car wash on the 40-acre parcel, Borzak said.

"That means those property owners have an obligation to sell to us at a set price," Borzak said before Tuesday's meeting. "However we are not obligated to buy."

Whether the plan moves forward depends on if the city council will declare the site blighted and therefore a tax increment financing district.

City officials are in the process of declaring the site a TIF. There will be a public meeting on the idea at 6:30 p.m. on June 26 at the Radisson Hotel at 1725 East Algonquin Road in Schaumburg.

Tax dollars would be key to the development, Pine Tree officials said. Without them, "we would not be able to go forward," Borzak said.

In TIF districts, tax revenue generated by a property's increasing value is diverted to a special fund that pays for improvements there, such as landscaping or sewer upgrades. Tax increment financing districts are controversial because government agencies such as schools do not receive the increased property tax money for up to 23 years.

Replacing 12 Oaks, formerly known as Woodfield Gardens, with new development is something city planners have had on their wish list for some time. Its location near the Schaumburg convention center and a train stop along the proposed Suburban Transit Access Route, or STAR, line fueled redevelopment plans.

In July 2006, a developer pitching plans for the 692-unit complex bailed on a project to add luxury condos and stores to the area off Arbor Drive at Algonquin Road.

"We are looking forward to this project," said Mayor Ken Nelson.

If approved, construction on the project would begin next year and it could be complete in 2011, Borzak said.