Des Plaines OKs more time for senior housing project

Des Plaines city officials have granted a local developer more time to build a high-rise senior housing project that has been stalled for six years.

The city council Monday night extended the final planned unit development approval for the Riviera project, originally granted in April 2004, until June 2012. The 278-unit retirement community is proposed for 10 acres located at 1050 E. Oakton St. near Lee Street, next to developer Nick Mitchell's Grazie Ristorante.

The vote was 7-1 Monday to grant the extension. Ward 5 Alderman James Brookman cast the lone "no" vote, saying many residents of his ward were opposed to the project in the past and that he wanted to survey them again to see if that is still the case.

Though Monday was the first reading for the ordinance, the city council pushed through and adopted it that night, dispensing with the second reading.

"There is concern that the project won't get completed, but we want to offer the developer every chance to proceed," Des Plaines Mayor Marty Moylan said. "It (the project) seems to be on a little more solid ground than was earlier presented."

Mitchell was granted two earlier extensions for the housing project based on inability to secure financing. He cited the housing market slump and tightening of lending markets as reasons for requesting yet another 2-year extension.

Yet Mitchell was optimistic Monday about getting the project off the ground, possibly by the end of this year.

"We're talking to some investment groups," he said. "The market has opened up a little bit."

Mitchell could not say exactly how much of the $133 million in financing needed for the project has been secured. So far, he has invested roughly $17 million in the project for land purchase and predevelopment costs.

The property was in danger of being foreclosed nearly nine months ago when the Federal Deposit Insurance Corporation shut down Mutual Bank, the primary lender for the project, Mitchell said.

"Right now, I seem to be in the safety zone," he said indicating the property is no longer in danger of foreclosure.

City officials had little discussion over whether to grant Mitchell's request since such extensions have become commonplace in this development climate.

"We've pretty much extended most of these projects," 6th Ward Alderman Mark Walsten said. "Hopefully, they will take off."

Resident Dion Kendrick suggested the city charge developers for every extension requested for a project.

Ward 8 Alderwoman Rosemary Argus said her community development committee would consider that at its next meeting and make a recommendation to the full council for a vote.