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Naperville City Council to consider $450,000 incentive to save Kroehler mansion

A $450,000 incentive to preserve the historic Kroehler mansion amid the sale of the Little Friends campus is expected to be considered Tuesday by the Naperville City Council.

The proposed agreement would compensate the nonprofit for the money it would lose by selling the Wright Street property to a developer who promises to retain the century-old house, rather than accepting a higher offer that calls for demolishing it.

Selling the Naperville property at its highest value is necessary for Little Friends to purchase and repurpose its new Warrenville campus, which President and CEO Mike Briggs says is better suited to provide services for students with autism and developmental disabilities.

The city council had already authorized demolition of the Kroehler mansion last year before approaching the agency with an offer of up to $562,000 in exchange for saving the building from destruction, according to city documents.

Based on the most recent bids received by Little Friends, Naperville officials later lowered the maximum incentive to $450,000 - the difference between a $4.95 million sales price without the house and a $4.5 million offer from developer Ram West Capital that preserves it. A concept plan presented in May called for building a residential community containing 11 single-family houses and 17 duplex units.

The nonprofit's board accepted the proposed incentive last month. If Naperville council members approve the deal Tuesday, Little Friends would plan to move forward with the acquisition of its Warrenville property next week, Briggs said.

"We as an organization have tried to be good neighbors and citizens through this process, given the fact that we didn't ask for it," he said. "Without the amount that is recommended, we simply cannot afford our new campus at the sale price we've agreed to."

Since Little Friends began developing relocation plans in December 2018, preservationists and neighbors have been pushing to ensure the mansion that was once home to two-term Naperville Mayor Peter Kroehler would remain part of the property's future.

Under the agreement, Little Friends would be able to forfeit its certificate of appropriateness to tear down the structure, though the demolition of the site's Krejci Academy, gymnasium and administration building would still be permitted. The agency would record a covenant against the nearly 4-acre campus requiring that the Kroehler house be protected, according to city documents.

At that point, the city would be required to pay out the $450,000, funded through citywide food and beverage tax revenues.

Little Friends has until Sept. 1, 2021, to decide whether to record the covenant, before which agency leaders can choose to opt out of the deal and demolish the mansion at any point, City Attorney Michael DiSanto said in a memo. The agreement also includes certain termination clauses that would not require the city to pay out the incentive.

Little Friends leaders are hopeful the agreement will pass, saying the economics of their plan won't work without it.

"For us, this is really about the future of Little Friends and our ability to serve those in need of a helping hand," said Patrick Skarr, a spokesman for the agency. "We want to try and bring this lengthy process to a responsible close."

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