Plan to redevelop 12 Oaks in Rolling Meadows falls through

Mike Sparks, the owner of 12 Oaks apartments in Rolling Meadows, cut ties with developers who wanted to build a retail center and upscale housing on his site. Now Sparks is testing the market with his $47 million complex and may keep it as apartments.

"At this point the contract is null and void," Sparks said. "We're looking at all options now - maybe raising the rents and keeping it apartment buildings."

That would be a far cry from what city officials had hoped for the site. According to police, domestic violence, theft and noise complaints are common at the apartment complex, which houses about 2,000 people. Last summer, police set up checkpoints to try and reduce crime in the area.

Pine Tree Commercial Realty of Northbrook wanted to build department stores, office towers, senior housing and at least one hotel on the site that includes 12 Oaks at Woodfield, formerly known as Woodfield Gardens. The complex is off Arbor Drive at Algonquin Road near I-90 and Route 53.

Everything currently on the site would've been demolished to make room for the project. Pine Tree representatives didn't return phone calls on Monday.

According to Sparks, he worked with Pine Tree representatives for 15 months to find interested retail and housing builders without getting any serious offers. Pine Tree wanted to extend the search process for another two years, but Sparks decided not to continue.

"In this terrible real estate climate, nothing was being sold," he said.

Sparks' relationship with city officials isn't getting much better either. He threatened to file another lawsuit against the city after he opened a tax bill with a $600,000 increase.

His taxes went up because the area was declared a special service area a year ago, said City Manager Tom Melena. An extra tax is charged to pay for additional police, fire and public works services to the area.

"Just because there hasn't been a consensus between Mr. Sparks and Pine Tree doesn't mean the city isn't spending time, money and effort there now," Melena said.

Sparks disagrees.

He said the tax should only be charged if there is a development agreement in place.

"To put it bluntly, we were all lied to, plain and simple," said Sparks at the Nov. 18 city council hearing. "What makes this difficult and frankly sad, is this underhanded lie originated from our village hall which consists of people we elect to serve our best interests."

Melena declined to comment further on the situation because Sparks has already filed one lawsuit against the city that steams from the city putting up barricades to the apartment complex last summer.

Rolling Meadows police blocked off all but one entrance to 12 Oaks on June 9 with concrete barriers and ran a checkpoint every day in front of the only open driveway.

Rolling Meadows police said they were passing out pamphlets on crime prevention and social services, but not asking for identification.

On June 16, Sparks sued, saying the barricades were unconstitutional. Police took down the barricades a few days after the suit was filed, but stood by their decision to put them up.

Replacing 12 Oaks, formerly known as Woodfield Gardens, with new development is something city planners have had on their wish list for some time. Its location near the Schaumburg convention center and a train stop along the proposed Suburban Transit Access Route, or STAR, line fueled redevelopment plans.

In July 2006, a developer pitching plans for the 692-unit complex bailed on a project to add luxury condos and stores to the area.