Prairie Park development becoming the talk of Wheeling

Rhoda Kossack quietly listened to her neighbor Jack Caldwell criticize the Prairie Park development at last week's Wheeling village board meeting.

When he walked out the door, she followed him.

"Um, excuse me, but I totally disagree with you," said Kossack, her arms crossed when she caught up with Caldwell. "That area needed a facelift and look at it now - it's beautiful with the waterfall and everything. Mark Smith had a verbal agreement to get the $7.5 million and that should mean something."

What it should mean depends on who you ask.

Wheeling officials have put off talking about giving Wheeling developer Mark Smith an additional $3 million, but that doesn't mean residents aren't talking about it. At last week's meeting, residents both for and against giving Smith the money lined up behind the public comment microphone, even though trustees were silent on the issue.

Some, like Kossack, said the village owes Smith the money because he invested so much in Wheeling.

Others, like Jane Batchen, were totally against the idea.

"In these uncertain financial times, the village should not be taking risks," Batchen said. "Enough has been done by the village of Wheeling. Don't give any more funds to Mr. Smith or Prairie Park."

In June, Smith told the village board he needed the additional $3 million to pay off bank loans taken out to build Prairie Park, a high-end project on North Wolf Road. If Smith gets his money, it would bring the village's total financial contributions to the project to $7.5 million.

The majority of village board members backed Smith's request, but questions remained about where the $3 million would come from. Most trustees are against pulling money from the general fund, even though financial officials said there aren't many other options.

The $3 million Smith did receive in 2003 came by way of tax increment financing to help him build 306 condo units in five buildings. He said, and village officials agreed, that he had been promised more, but when it came time to make the deal official, the board only gave him the lower amount.

In 2006, Smith asked for and received an additional $1.5 million to cover the rising cost of materials.

So far, only four of the buildings have been constructed. A promised clubhouse also is yet to be built. While the first two buildings are sold out, there are about 80 unsold units in the remaining two buildings. Smith said he hopes to build the fifth building and clubhouse "when the market picks up."

The entire project initially was projected to cost $125 million to complete.

At the June meeting, trustees asked Village Manager Mark J. Rooney to find the $3 million from TIF district funds, not the general fund.

That will be tricky since the current estimated total of the village's tax increment financing district funds is at negative $4 million. That means the $3 million would have to come from the general fund reserves, according to a memo written by Mark Angelini of S.B. Friedman & Co. in Chicago.

In coming years, the TIF district the project is part of is expected to generate millions in revenues that can be used to repay the general fund.

In a TIF district, the amount of property tax revenue government bodies such as schools receive is frozen for 23 years, with increased tax revenue from new development instead going into a fund to help spur growth in the area. The idea is that ultimately the area will produce more tax revenue for the taxing districts because of redevelopment.

The board was supposed to talk last week about Prairie Park funding, but the discussion was tabled at the last minute after Rooney said "new information came in this afternoon."

Rooney did not say what that information was.

After the regular board meeting, Wheeling trustees talked about Smith and his funding in closed session. Prairie Park's funding should be discussed in public this month, said Trustee Ken Brady, who declined say what was discussed in closed session. The board's next regular meeting is Monday, Aug. 17, and the matter may come up then.

"I know residents are concerned, but we can't let this (Prairie Park) go belly up," he said. "We should find a way to help him and salvage the project for the sake of the whole area."

Trustee Pat Horcher has been the lone trustee against giving Smith the $3 million. He also declined to talk about the closed session.

"Hopefully, we'll talk about this at the next regular board meeting," he said. "Time is ticking and I'm sure the bank wants their money."