Batavia inclined to approve Mooseheart site annexation

Annexation and development of Mooseheart land along Randall Road received an unofficial thumbs-up from Batavia officials Tuesday night.

The community development committee voted 7-0 to proceed with an agreement that calls for annexing the entire 470-acre site to Batavia. What had been an obstacle — the cost of providing electrical service to the southern portion of the site — was resolved with a cost-sharing deal.

The committee will vote on the actual agreement May 24. A public hearing and city council vote on it are scheduled June 6.

Batavia believes a new substation would be needed at some point to serve the whole development at build-out, particularly the southern portions, and that the site should also connect to a substation near the Fox River. Hudson Burnham Development Partners, the firm representing Moose International, and Moose International disagree on the need to connect to that Fox River substation, and wants the city to pay part of the costs. The developer wants the ability to disconnect the development from Batavia if it feels the electrical costs are too high.

Joe Segobiano of Hudson Burnham had also said the Moose would ask North Aurora to annex the land if it couldn’t get that provision, according to a city staff memo on the agreement. The Mooseheart site lies on Batavia’s side of the Batavia-North Aurora boundary agreement.

Under the proposal voted on Tuesday, the developer will pay $3 million toward the cost of connecting to that Fox River substation. “We think that is fair,” city administrator Bill McGrath said. The fee will have a cost escalator, based on the Construction Cost Index.

Fourth Ward Alderman Jim Volk, who is not on the committee, doesn’t think it is fair. He proposed a special service area taxing district be created, with taxes going to pay the cost of the electrical work. To sweeten the deal for the developer, he proposed offering a sales tax rebate.

“I’m still troubled by why residents of the 4th Ward should have to see (electricity) rates or (property) taxes increase to pay for development,” Volk said.

Moose International has proposed a mixture of housing, hotels, offices and stores for the land, which is now farmland, and bordered on the south by Mooseheart Road and Main Street on the north. It intends to retain ownership of the land and lease it out.

The Mooseheart residential school area is not part of the proposed deal.