Libertyville food store back on track?

Work on an eagerly anticipated but long idled upscale grocery store in Libertyville could soon resume.

Trustees on Tuesday will consider two agreements that settle past issues and protect the village's future interest in the $10 million Fresh Foods project, 1600 S. Milwaukee Ave.

"We have some pretty good guarantees the construction will move forward," said Mayor Jeff Harger.

The proposed agreements would settle a complaint brought by the village to have the partially completed site cleared and require new owners to complete the exterior shell within four months or pay a steep price.

If approved by the board, the agreements would accomplish several goals.

Libertyville would gain a unique entity for area residents and secure a new source of sorely needed sales tax.

Completing the building also would knock another site off the village's list of vacant or shuttered properties to be redeveloped.

"They want to be in this summer," Harger said.

According to the proposed agreements, the current owner, 1600 South LLC, would pay village legal fees of nearly $27,000.

In return, the village would drop the suit, which was said to have been an impediment to a new ownership securing financing.

The new owner, DJB Venture LLC, would provide $15,000 to be used to pay any additional legal fees.

Also, at the time of the property closing, DJB would have to deposit $100,000 in an escrow account. That would be paid to village if the exterior shell, barring unforeseen circumstances, is not finished within four months.

The money could be used for demolition of structures on the property or other expenses but would be refunded if work is completed, under terms of the agreement.

"We don't know what's involved in the old partnership," Harger said. "All we know is we have somebody to pick up where they left off and we'll get the building finished."

DJB would have two weeks to apply for a building permit if the board approves the agreement but would not have to go through a full village review if the plans are the same as previously submitted.

The agreements could end a lengthy and sometimes frustrating situation.

A building permit for the store at the former site of the Frank's Nursery and Crafts near the border with Vernon Hills was issued in March 2007.

At the time, village officials were excited about proposed amenities such as restaurant-caliber chefs cooking prepared foods, live bands and activities for children that would make the store a unique addition.

The steel ribbing of the building eventually was erected but the property has been left unfinished for more than a year.