Wheeling has no strings on final Prairie Park payment

The developer of the Prairie Park Condominiums in Wheeling will get the rest of his $4.5 million without having to guarantee finishing the project at 566 N. Wolf Road.

The Wheeling village board approved giving $387,984 to Mark Smith of Wheeling's Smith Family Construction at Monday's village board meeting with a 5-1 vote. Trustee Patrick Horcher voted against the idea.

"So this money will be given for something that hasn't been done and is not tied to any performance?" Horcher said.

Village officials said yes.

Back in 2003, Smith received $3 million from the village by way of tax increment financing to build 306 high-end condo units in five buildings. In 2006, Smith asked for and received an additional $1.5 million to cover the rising cost of materials.

Smith said the project would be done in phases, but so far only four of the buildings have been constructed. A promised clubhouse also has yet to be built.

Trustee Dean Argiris backed the project and Smith at Monday's meeting.

"To make a statement that we're giving away $387,000 for nonperformance is wrong; it's been one hell of a performance," Argiris said. "If you remember, that area used to be a swamp - but this developer said it could be done. He deserves our kudos. I believe in this project."

So far, 155 of the 240 units have been sold, Argiris said.

Trustee Robert Herr agreed with Argiris.

"(Prairie Park) is an investment in our community," he said. "If you drive though there, it's very, very nice."

When village trustees approved the project's funding back in 2003, they didn't write Smith a $4.5 million check. Instead, they said they'd only give Smith funds as he sold the condo units. In other words, if Smith couldn't complete the project, he would only get money for the units that have been built.

Monday was the first time the board gave Smith money for units that haven't yet been built. Village officials know of no plans to build the clubhouse or fifth condo building, Village Manager Mark Rooney said after the meeting.

In tax increment financing 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, don't receive the increases in property tax money for 23 years.

The village will recoup its money as property taxes are paid on the units.

Payment: Clubhouse, fifth building still to be built