Lake Zurich OKs redevelopment

The Lake Zurich village board Monday approved an agreement with Equity Services Group LLC for downtown redevelopment.

The approval came after months of debate and a three- week period for alternative proposals to be submitted, during which no full proposals were received by the village.

Five of six trustees voted to approve the agreement in front of a standing room-only crowd that delivered more than an hour of public comment on the issue.

Trustee Suzanne Branding, candidate for village president with the CARE party, abstained from the vote.

The CARE party has voiced concerns about the agreement with Equity Services Group during the process, saying the developer has not provided enough information about their finances and that the contract may result in nothing being built.

The agreement gives the developer four opportunity periods during which it has the exclusive right to buy village-owned property. ESG would have to turn in plans for development in one of four project areas by Sept. 30, 2010 - the end of the first opportunity period - or the developer would lose its exclusive right to buy village property.

"I think it's pretty protective of the village," said Village Attorney Mark Burkland.

The project areas are on the lakefront along Main Street, continuing up to Old Rand Road. ESG can choose to develop these areas in any order. Some parcels of village land will sell for $10 each as an incentive to the developer. However, ESG will also have to buy private property around the parcels, which will not be as easy on their wallets.

The village has faced issues while trying to redevelop its downtown for several years. Lake Zurich is still settling the end of its agreement with its last developer, McCaffery Interests of Chicago. Village officials ended that agreement in 2007 because they said the developer breached its contract.

Lake Zurich is also seeking to extend the life of its TIF district, established to capture revenue for downtown redevelopment. The special tax district is set to expire in 2025; an extension would push that date to at least 2037. The village recently restructured its $25 million debt from the special tax district and officials said an extension would ensure that the debt can be paid on time.