Former Hubble site may head to auction block

In a move that would jump-start redevelopment of a former school site in downtown Wheaton, the property may head to the auction block in early 2011.

Wheaton Warrenville Unit District 200 officials say developers are expressing “significant interest” in the former Hubble Middle School property at Naperville and Roosevelt roads. The district is in the process of seeking an updated appraisal of the 22-acre parcel.

Once the appraisal is done, Superintendent Brian Harris said the school board's next step could be a vote to put the property on the market.

“At some point, we're going to pursue selling the property,” said Harris, adding that any sale must occur during either a public auction or a sealed-bid auction.

School board President Andy Johnson said Friday a board vote on selling the site could come as early as February or March.

District 200 wants to act soon because “multiple groups” are expressing interest in the property, including several developers who met with district officials before Christmas.

Johnson said two of the three developers he's aware of have proposals that involve a grocery store.

“There is money sitting on the sidelines waiting to be put back into the economy,” he said. “That is a great location, and we want to get it on the tax rolls as soon as we can.”

Any deal District 200 inks with a developer would make the sale of the property contingent upon the city approving zoning changes.

“Then let the developer work with the city,” Harris said.

Mayor Michael Gresk said such a deal would “greatly facilitate” redevelopment of the site. District 200 also could use proceeds from the sale to pay down the highest interest bonds it holds.

“I think it's a great move,” Gresk said. “The school district is being true to their original premise that they are going to develop that commercially and get the highest and best use out of it.”

But Councilman John Prendiville, who is challenging Gresk for mayor, says he believes the highest and best use of the site would be for it to become a park district facility.

“As far as I am concerned, the best result for the community would be a public use of that property,” said Prendiville. He said the idea would keep the former school's three gymnasiums and outdoor ball fields for sports programs.

Prendiville's “recreation” proposal is one of two options a steering committee recommended for site. The other is to encourage a developer to build a mixture of uses on the property.

Johnson said the problem with giving the site to the park district is that the school board already has promised to sell it.

“We promised the community we were going to sell it, get the money and pay off some bonds,” Johnson said. “That's what we're going to do.”

However, Prendiville questions whether any developer — in the current economy — will be able to meet the district's eventual asking price.

According to the most recent appraisal of the old Hubble site in 2007, the land has an estimated value of $21.7 million. That figure is significantly higher than the estimates the district received for the site in 2001 and 2002. One earlier appraisal valued the land at $4.8 million. The other appraised it near $10 million.

But the $10 million appraisal didn't factor in the existing school building as a negative factor.

District 200 officials concede the cost of preparing the site for construction would be significant. Harris said preliminary estimates show it could cost $2 million to $3 million to abate the asbestos in the building and then raze it.

Then there's the issue of trying to meet the goal of the site becoming a gateway to the city.

“It would be difficult to imagine that there's a developer out there who would put in the type of high quality development that we would want,” Prendiville said, “given the fact that there's so much commercial real estate on the market right now and so many vacancies.”

Still, District 200 has another incentive to sell. It must spend about $300,000 annually to keep the building in minimal operational shape.

“Our cost just to maintain this thing is going to continue,” Harris said. “The sooner we can get rid of it, the better we're going to be.”