Elk Grove District 59 sells buildings, worries about new one's rising cost
Elk Grove Township Elementary District 59 is selling its current administration building property, even as officials are unsure of exact costs for the building that will replace it.
The school board Monday night voted 6-1 to approve a $5 million sale of the current administration center and neighboring former Wellington banquets property at 2121-2123 S. Arlington Heights Road in Arlington Heights.
Still, board members expressed some hesitancy in sanctioning the sale since cost estimates for the proposed two-story, 38,000-square-foot administration building at 999 Leicester Road in Elk Grove Village continue to climb.
District officials said earlier this month costs for the new building rose to more than $15 million from $12.3 million. On Monday, they said the price could be more than $16 million, not including contingency costs.
That's even after architects removed some 2,300 square feet of space from the building, lowered the height by 3 feet, altered windows, and got rid of a brick wall in the parking lot.
The district plans to pay for the new building with reserve funds and the $5 million in proceeds from the sale to Red Rocks 4 LLC, a subsidiary of developer Nicholas & Associates.
The rising numbers prompted board members to recommend the district solicit bids on a pared down version of the building while at the same time seek bids on about 10 to 15 alternatives that could be added to the project, such as a larger outdoor canopy in front of the building instead of an overhang, and more windows.
Board member Sharon Roberts, the lone "no" vote for the deal with Red Rocks 4, said she was uncomfortable approving it now without knowing the actual costs of the new building.
Some board members sought to delay a final vote on the sales contract, but others feared they'd lose the deal and get nothing at all.
Administrators pushed for a vote, warning that construction costs are only expected to rise.
Board Vice President Janice Krinsky said the estimated $16 million cost of the new building is more than the board wanted to spend, but the district has $120 million in its reserve fund that could be used.
"Even in the worst case, if it came in over $16 million, I think we want to get rid of this building and build a new one and move on," Krinsky said.
Red Rocks 4 has proposed commercial development or a commercial-residential mix for the existing District 59 properties.
The district plans to put the administration building project out to bid in December and have bids voted on by the board in February. Crews could break ground in the spring, with a planned opening in the late fall or early winter of 2017.