Bids 'on the low side' for Libertyville Sports Complex
There is interest, but whether bids for a portion of the Libertyville Sports Complex can help solve a red ink problem at the village-owned facility is hard to say.
At the deadline Tuesday, the village had received three offers for up to 30 acres of the complex at Route 45 and Peterson Road. The parcels, which include a golf range and now-closed miniature golf course and batting cages, were being made available for sale in a sealed bid auction process.
Details of the offers were not revealed pending discussion by the village board, but Village Administrator Kevin Bowens acknowledged they were "on the low side."
"There was a pretty extensive marketing campaign about the auction. We're thankful we got three, but it's indicative of the real estate market now," Bowens said.
The village board will decide whether to accept or make a counteroffer for one of the bids. The bids also could be rejected in hopes of netting more money later, but the commercial real estate market is floundering and not expected to improve soon.
"It's not going to be an easy decision," Bowens said. "It's not like, `Wow,'" he said of the bids.
None of the offers indicated what is proposed for the property, he added.
Comprised of three distinct operations, the complex that opened in June 2002 has created a money problem for the village that has reached critical mass.
The Indoor Sports Complex, with basketball courts, indoor soccer fields, a fitness club and other amenities, makes money after expenses but not enough to offset the other parts of the complex and satisfy debts.
The village pays about $2.4 million a year on principal and interest on two bonds issued to buy the property and build the facilities. Only a portion of that has been covered by revenue from the three components, and the village has used about $7 million in rainy day funds to cover the difference, putting a serious dent in its reserves.
Proceeds from a property sale would have to be substantial to make a difference. The commercial market has been virtually nil, affecting interest in the site, and lowball offers won't help, village officials have said.
"I'm looking at it like we're stuck with it - we're not going to sell the property," said Trustee Todd Gaines. "It is what it is and we'll just have to deal with it."
That's why the village is trying alternative strategies, such as hosting a Saturday concert featuring country star Dierks Bentley to draw use and attention to the indoor portion.
Gaines is one of three trustees on the board's parks and recreation committee, which discussed the issues Tuesday. Mayor Terry Weppler also attended and said the rationale for building the facility and the way it was financed doesn't matter.
"They're general obligation bonds, we can't just say we're not paying," Weppler said. "Closing the doors doesn't help us. All we can do in this market is make every effort we can to make it profitable."