Des Plaines postpones decision on Sim's
The Des Plaines city council Monday night deferred decision on whether to rescind its earlier authorization to purchase Sim's Bowl and Lounge in downtown.
Leaders remain conflicted about whether to buy the bowling alley at 1555 Ellinwood St., the adjacent Depot Pizza and a 100-year-old building next door for $862,500 from Midwest Bank to spur redevelopment.
Last month, the council opted not to borrow $895,000 to buy Sim's.
City officials estimate it could cost $860,000 to refurbish the 13,000-square-foot bowling alley to bring it up to city code once it is purchased. The original renovation estimate was $600,000. That includes upgrades such as making bathrooms handicap accessible, repairing the roof, installing a new fire alarm and sprinkler systems and restoring kitchen equipment.
There also is the potential for yet-unknown costs, such as removal of lead paint and asbestos, and for upgrading water service and the building facade. It could cost the city more than $200,000 to raze the building if asbestos and lead abatement is required.
Yet, despite the costs, it seems city officials are not ready to give up on the deal.
Des Plaines Mayor Marty Moylan said officials want to keep their options open.
"It's up to the aldermen," Moylan said. "They've got to decide what they are going to do."
City officials also are trying to get an updated appraisal for the roughly 27,000-square-foot Sim's property - valued at $1.3 million in 2007 - as property values have dropped dramatically since Sim's succumbed to foreclosure last June. The council was given new information in closed session before the regular meeting, but none of the details were shared with the public.
The council on Monday tabled another decision to grant a one-year extension for a conditional use permit and variation to a hotel developer.
Construction on two Hyatt hotels on Mannheim Road just south of Interstate 90 was expected to begin in April but likely won't happen for at least another year.
The city's community development committee recommended extending the permit for a preliminary planned unit development granted to HNI LLC to build the Hyatt hotels.
But the council members wanted more time to review information provided to them in closed session, Moylan said.
The city owns the roughly 5-acre site - home to Ace car rental and a former TraveLodge - which it has agreed to sell for $2.7 million to Chicago developer Harlem Irving Cos., HNI's parent group.
The proposal calls for building two hotels stacked on top of each other with a total of 313 rooms and developing three outlots on the property for restaurant/retail uses.
The city borrowed $10.4 million to purchase land and for other redevelopment costs, which was to be repaid by revenues from a tax increment financing district as the area was redeveloped. Officials restructured the debt last fall because the district was projected to have a $3.2 million deficit by 2012. The total cost to the city over the TIF district's lifetime is $15.2 million.