Old Lake Zurich police station site to get cleanup

A $100,000 grant from Lake County will be used to clean up the old Lake Zurich police station site, ensuring the village is ready if and when a redevelopment proceeds.

Situated in one of four prime redevelopment blocks in its downtown plan, removing an underground gasoline tank and any contaminated soil at the site in advance would eliminate future delays, officials say.

"The village is supposed to turn over a clean piece of property to the developers," said Dave Heyden, public works director and engineer. "It's a key step in getting this development moving."

A preliminary estimate pegs the work at about $215,000, too low to qualify for state or federal grants, he said.

But the village successfully made its case to Lake County and was awarded a grant of up to $100,000 to offset the cleanup cost.

"It's one of the programs that gets rid of some old, old problems that are lingering in the county," said Dan Peterson, building director.

"It would have to be remediated anyway (and) if the developer pays for it, they'll want concessions elsewhere."

The next step is to take soil samples to determine the extend of any contamination. A remediation plan will be outlined with work expected to begin in spring.

This would be the third of four sites to be remediated within proximity, Heyden said. Two old gas stations already have been cleaned up but development has been delayed there because of the economy.

Those sites were more costly and the village applied a total of $70,000 in county brownfield funds as a local match.

"It's actually being used and utilized as it was intended," Heyden said.

The former police station and 911 center is standing but is gutted and prepared for demolition. Whether the developer or village will be responsible for that cost will be determined when a proposal for the area is submitted.

Redeveloping the downtown area has been a lengthy and ongoing process. In February, the village approved an agreement with Equity Services Group LLC as the most recent developer.

Village-owned land will be made available at next to nothing as an incentive but the developer would have to acquire surrounding private property. The firm has until Sept. 30, 2010, to submit plans for one of four project areas or lose the exclusive rights to the village property.

"They are gearing up and hoping to have some announcements this fall," Peterson said.

Lake Zurich's brownfield grant was one of four totaling $350,000 approved Tuesday by the Lake County Board. Funding has been included in the pending budget but some county board members have questioned the expense and it could be reduced or cut.