Libertyville agrees to accelerate parking lot project with Canlan Sports
A project to expand and reconfigure the parking lot at Canlan Sports Libertyville is set to begin soon - a decision village officials hope will benefit the business and improve the chances of selling the cavernous building.
The work had been on the village's to-do list as it sought to sell and develop other elements, including a golf driving range, of what collectively was known as the Libertyville Sports Complex at Route 45 and Peterson Road.
But because of a two-year delay in completing a deal with Midwest Industrial Funds Inc. to build two warehouse/industrial buildings on a portion of the site and address other needs in town, the parking lot project was delayed until next year.
The site plan for Midwest Industrial Funds required the parking lot to be expanded and reconfigured. That changed when Canlan, which leases the indoor sports facility from the village, asked the project to be done this fall and offered to front the $475,000 cost.
As planned, the project will add 120 parking spaces to bring the total available for the indoor sports facility to 500. The entire sports complex, including the golf driving range and other facilities, had more than 600 spaces initially.
Canlan said parking lost due to the sale of property to Midwest has affected its ability to serve visitors. And with the busy winter season approaching, it wants to proceed before asphalt plants close.
Village officials were told floor space for basketball, soccer and other uses at Canlan Sports was completely booked from November to March.
Also, Hot Ground Gym is generating significantly more traffic than a boxing facility that had operated in the building, village officials were told.
The Libertyville Sports Complex opened in 2002. Aside from the main building, it long has been a drain on finances. For many years, the debt has been subsidized with general funds.
"They convinced me there is a demand for parking, particularly on the weekends," Finance Director Nick Mostardo told the village board.
Libertyville wants to be cooperative in hopes Canlan will buy the building for $3.75 million before the option expires on June 30, 2023.
"It's been our intention to be a good landlord so that they have a successful business and in turn, they'll feel positive about exercising their option," said Trustee Pete Garrity. "It behooves us to work with them on this initiative."
A memorandum of understanding calls for the village to reimburse Canlan the fronted cost, likely in the form of a credit at the time of sale. If Canlan does not exercise its option, the village would pay half the cost, or $237,486.
Canlan will oversee the project, to be built according to village-approved specifications and subject to village inspections. The work is expected to take about three weeks after the village issues a permit, possibly as soon as next week.
While agreeing with the arrangement, Mayor Donna Johnson said Canlan needs to let the village know its intentions on the purchase when seeking considerations as a tenant.
"We have always been firm. We want to unload that property. That's our goal," she said.
Mostardo said using sale proceeds to pay down the Sports Complex debt is an option to be determined by the village board. The current debt is $10.28 million but will drop to $9.32 million after the November payment, he said.