Developer makes requests for Rolling Meadows parcel

A developer planning a massive mixed-use project in Rolling Meadows has issued its request for public money, which Mayor Ken Nelson is like a "blank check."

Pine Tree Commercial Realty of Northbrook wants to add department stores, two office towers, senior housing and a hotel at 12 Oaks at Woodfield, formerly known as Woodfield Gardens. The complex is off Arbor Drive at Algonquin Road near I-90 and Route 53.

Pine Tree has requested that the city designate the 40-acre area as a tax-increment financing district. In addition, the developer wants the entire proceeds from taxes on sales, hotel, restaurant and entertainment, City Manager Tom Melena said.

Pine Tree also wants the city to create a special business district, which would allow the sales tax to increase by 1 percentage point. The developer would collect the money from the increase, Melena said.

A special service area would be established at the site to require the city to issue bonds for public improvements, under another proposal.

City officials announced the requests for the first time Tuesday night.

No representatives of Pine Tree, which has an option to buy the property, attended the meeting. Melena plans to speak with them next Monday.

Melena said there are problems with the requests since the developer hasn't told the city how much money it really needs to get the project off the ground.

What he calls the financial gap -- or the additional cost it would take to build on already developed property instead of a vacant parcel -- has yet to be identified, Melena said.

Mayor Ken Nelson said while the city is willing to consider the options, there are questions that must be answered.

"We have to know what the numbers are. We're not going to write a blank check," Nelson said.