Wheeling votes to give developer $6.5 million

To save his Prairie Park condo development from foreclosure, developer Mark Smith got $6.5 million on Monday night.

The Wheeling village board voted 4-2 to give Smith the money in tax increment financing funds, bringing the village's total contribution to the project up to $10.5 million. Trustees Dave Vogel, Dean Argiris, Robert Heer and Ken Brady supported giving Smith his money. Trustees Ray Lang and Pat Horcher voted against the idea.

Village President Judy Abruscato abstained because she's employed by MB Financial, the bank in charge of the project's financing.

Argiris called the development and the area along north Wolf Road the "future of this community."

"I don't see this as helping a developer, I see this as helping a development," he said. "From day one - like it or not - we became partners with this development. To let it fail would be letting the community down."

Of the $6 million, $2.5 million would finish site improvements, including a ring road within the development and a clubhouse. The remaining $3.5 million would be performance based, meaning he'd get the money only as he sold new units, Wheeling Village Attorney James Ferolo said.

The clubhouse should be finished by May 30, 2011, Ferolo said.

"If there is not enough increment to make those payments, those payments won't be made," said Ferolo, who added that construction on the clubhouse should be finished by May 30, 2011.

Smith said he has invested more than $80 million in the project so far, but Ferolo said Smith's debt has climbed to about $26 million. So far, Smith has sold 161 units, while 79 remain unsold. No units has been sold so far this year, according to Michael Mondschain, Wheeling's director of finance.

Smith received $3 million in 2003 from the village TIF funds to build 306 high-end condo units in five buildings. In 2006, Smith asked for and received $1.5 million more to cover the rising cost of materials.

Smith asked the board for an additional $3 million in October and August 2009. He was denied both times.

At the April 19 meeting, Smith said he has invested more than $80 million in the project so far. Plans for the fifth building have been shelved for now.

"We couldn't force him to build the fifth building given this economy," Ferolo said at Monday's meeting. "They could end up an empty building."

Condo: 79 units remain empty