Arlington Hts. taking close look at developer's partners
Arlington Heights trustees delayed moving forward on a development plan for the northeast corner of Arlington Heights and Golf roads on Monday after representatives from the Harlem Irving Companies disclosed they had business ties to William Cellini.
Last week, Cellini was charged with conspiracy to commit wire and mail fraud, conspiracy to commit extortion, attempted extortion and solicitation of bribes. Cellini is a longtime Republican. He stepped down as a treasurer of the Springfield area's Republican organization on Oct. 15. But he is known at the state Capitol as a power broker who has played both sides of the aisle while reaping a fortune off state-backed ventures, including casinos, road building and hotels.
Some of Cellini's children are silent partners for some Harlem Irving developments, said Richard D. Filler, Harlem's executive vice president and chief operating officer.
However, they would have no involvement in the Arlington Heights project, he said.
"Their expertise is residential and our expertise is retail," Filler said. "Oftentimes we would partner for mixed-use developments. That partnership wouldn't make sense in this case."
However, trustees on Monday said wanted a little more assurance.
They asked the village's legal department to make sure there were no lingering legal issues and report back on Monday, Nov. 17.
"There are a lot of unanswered questions," said Village President Arlene Mulder. "There is definite interest, but haste makes waste."
Harlem's plan is to demolish the vacant gas station, Arlin-Golf Plaza and the Kitakada restaurant and build a water fountain and two retail buildings for tenants such as Panera, Corner Bakery or US Cellular on the 1.4-acre site, said Brian Duggan, Harlem's director of development. Harlem representatives can't officially talk to potential tenants until the Arlington Heights village board approves the development agreement, Duggan said.
"We pride ourselves in rolling up our sleeves and handling tough problems," Duggan said. "That's a fantastic corner. That's an "A" corner."
Arlington Heights officials have been trying to redevelop the 35 acres surrounding the site - including the International Plaza - since 2002, when the village board declared the site blighted and formed a special tax district to spur redevelopment. The tax increment financing district allows the village to use the extra property tax revenue generated by the improvements to pay for certain redevelopment costs.
In May 2007 the village board terminated a plan to demolish the International Plaza mall and build a 174,000-square-foot SuperTarget store just east of the abandoned gas station. The deal would have reimbursed Target up to $19 million. The board cited a lapse of time due to pending lawsuits, increased costs and changing economic conditions as to why the deal fell through. So far, no other developer has submitted a plan to redevelop the area since Target backed out, said Charles Perkins, director of planning and community development.
When the plans for International Plaza stalled the village board moved forward on the gas station. In July, the board approved a "purchase or condemnation ordinance" to demolish and clear the site.