Taxpayers shouldn't bail out builder

The warnings come from several quarters:

From real estate consultant Mark Angelini: "There are very serious ramifications to dipping into (the general) fund."

From Village Manager Mark J. Rooney: "This $3 million will close the door on other decisions."

From Trustee Pat Horcher: "We're not a bank."

They were cautioning against Wheeling handing over $3 million to the developer of the Prairie Park condo project - especially if the money comes from the village's general fund reserves, the only apparent source.

We add our voice to those warnings.

At a time when governments must be safeguarding their cash to survive a recession of unknown duration, unbudgeted spending should be a last resort, enacted only at the greatest need.

Bailing out Prairie Park doesn't fit that criteria.

Certainly, the village has a stake in the success of Prairie Park, a partially completed high-end condo project being built on North Wolf Road by locally connected developer Mark Smith. About 155 buyers have already purchased homes.

Smith launched the project in 2003 with $3 million he got from the village by way of tax increment financing, in which additional tax revenue generated by a property's increasing value is invested to make improvements there. In 2006, Smith asked for and received another $1.5 million.

Now, the condo project has hit hard times and Smith is seeking another $3 million, saying he had a verbal promise all along for $7.5 million from the village.

But there's a problem: Wheeling's TIF funds are $4 million in the red.

The only ready source of cash is the village's $18 million in general fund reserves, Angelini told trustees - reserves already expected to be drawn down by a $3.5 million operating deficit this year.

If the village earmarked another $3 million for Prairie Park, remaining reserves would be $11.5 million, forcing "some tough decisions about programs or personnel," Finance Director Michael Mondschain said.

Trustees directed Rooney to come up with a way to get the $3 million from TIF. That might be possible through the sale of other property Wheeling bought to redevelop, but it's hardly a fast source of cash.

TIF funding would make the plan to rescue Prairie Park only slightly more palatable. Even with the $3 million, Smith makes no promise that he'll go ahead with the fifth condo building or clubhouse. And trustees must very carefully weigh what other projects they'd give up to fund this one - not to mention the precedent they'd set.

As for the general fund, the only responsible answer is to tell Smith no.

Don't let all those warnings become I told you so's.