patching...
Breaking: St. Charles East Boys Win Regional Volleyball Title »
Welcome back, Patch Blogger!

Lexington Club Attorney Slams St. Charles Aldermen for Rejection

He says developer cooperated with the city every step of the way, spent hundreds of thousands of dollars in the process.

 

The attorney for Lexington Club developer 333 North Sixth Street LLC, chastised the St. Charles City Council Planning and Development Committee after its 7-2 vote on Monday rejecting the tax increment financing component considered a linchpin to financing the $45 million development.

Attorney Hank Stillwell warned aldermen they were sending a strong message that St. Charles is among the most anti-development communities in the western Chicago suburbs.

Visibly angry, Stillwell laid out for the council that he and his clients and worked hand in hand with the city, making concession after concession to ensure the project was palatable to the city. Every stop of the way, he said, the council had indicated its support for those efforts — until Monday night.

Stillwell said the process has gone on and on at a considerable expense to his clients.

“We did what you asked us to do. We said, ‘What do you want?’” he told the aldermen, reminding them the developer made concessions each step along the way. “In each step, it was understood that a TIF component was essential to make this work.”

Stillwell said as a result, his clients have spent hundreds of thousands of dollars on the project already, not to mention the time over the past several years working with the city staff.

“You voted in favor of the (TIF) entitlements seven months ago. That plan is what you said you wanted on the site … You people agreed! You did,” he said.

He called the council’s decision a political decision, not a business decision — apparently referring to the perception that the council was bowing to political pressure from residents opposed to the project.

After the meeting, 5th Ward Alderwoman Maureen Lewis pointed out that both she and 4th Ward Alderwoman Jo Krieger consistently have voted against the Lexington project. She said Stillwell’s comments seemed to be directed at the entire council, when prior council support for the project has never been unanimous.

Still, even prior to the vote, there were indications that aldermen were concerned about the city advancing another tax increment financing district, or TIF, particularly in light of the city’s experience with the districts so far.

St. Charles Economic Development Director Chris Aiston started the discussion by trying to reassure the aldermen that while some numbers related to the TIF had changed as the development has been realigned, the bottom line really has not.

The budget for the project did show an increase in the amount of reimbursable costs for the developers activities on the site for demolition, environmental remediation and site leveling.

In the project’s original budget request totaled $4.96 million, with a total TIF cost of $5.25 million. That was revised to $6 million, with a total TIF cost of $6.29 million. The difference, he said, was due to an increase in the gap between anticipated revenues and costs for the project.

The city’s Joint Review Board, which includes representatives of those taxing bodies that would be affected by a TIF, looked over the project on Dec. 5, after this latest Lexington Club revision, and approved the change.

Despite Aiston’s explanation, 3rd Ward Alderman Bill Turner questioned the wisdom of the city embarking on a residential TIF district when similar efforts in town failed to be productive.

He pointed to the old St. Charles Mall site as one example of a TIF still waiting to be developed, as well as the city’s 1st Street project, in which two buildings were supposed to have been built along the Fox River on a site that remains bare.

“We don’t have a real good track record on residential TIFs,” he said. “This does not look good to me and I am not willing to risk this.”

Aiston said the Lexington Club project is significantly different in that the city will incur no debt, describing it as a pay-as-you-go effort.

“... The developer incurs the debt, the developer incurs the risk … They take the risk,” he said. “The city will have no financial risk in this project. Worst-case scenario: The developer ends up owing $6 million.”

Alderman Raymond Rogina of the Third Ward also expressed skepticism about the project — not because of the land-use issues, but because of the financial concerns related to the TIF. His remark sparked agreement from 1st Ward Aldermen Dan Stellato, who also said he was reluctant to discuss the land-use aspect of the project.

The use of the site to develop multifamily homes is a land-use issue.

Still, committee Chairman Cliff Carrignan, also a 2nd Ward alderman, said the committee should consider the risks and benefits. Specifically, risking $6 million on a project that would increase the property’s value tenfold.

The site has an equalized assessed valuation of about $4 million, yet the developer is planning a $45 million project. Still, Carrignan found himself in a situation where he could speak in support of the project but could not vote for it. The committee chairman votes only when there is a tie.

The environmental remediation on the site remains a key concern if the project does not advance. Aldermen were told the Illinois Environmental Protection Agency would be in charge of ensuring environmental compliance on the site if it is not developed.

Related:


Let Patch save you time. Get more local stories like these delivered right to your inbox or smartphone with our free newsletter. Fast signup here. Like us on Facebook.


Related Topics: Lexington Club, St. Charles City Council, St. Charles Planning and Development Committee, and TIF District

Phil Krahenbuhl

9:31 am on Tuesday, December 11, 2012

Yes thank you council. The voice of the people has been heard! Lexington has shown no concern about the negative effects that this type of development would have on the surrounding neighborhood, espcially in regards to traffic. They just want to make a profit and let the city deal with the aftermath. We need a better plan.

Reply

Pete Richards

12:03 pm on Tuesday, December 11, 2012

Chris Aiston was wrong about the Joint Review Board did not approve the changes to the TIF because how could they approve it without taking a vote, which they did not do. They listened to what the Mayor a couple of residents had to say, they never commented, and then the Mayor adjourned the meeting.

Attorney Stillwell made a complete fool out of himself at the meeting. In his defense, I suppose he was upset because both of the projects he represents got voted down by the Committee; but he was wrong about both working with the Aldermen and about the City being anti-development: the City Council is beginning to wake up and realize that RESPONSIBLE development is preferable to development for development's sake...and that my friends and fellow citizens is a very good thing.

Reply

Craig Bobowiec

6:45 am on Wednesday, December 12, 2012

What was wrong about Stillwell's rant was his client way back when, never came before P&D with a concept plan, he instead went behind close doors with Administraion as he admits and listened to their promises when they don't pass anything. How come Mc Donalds came before the P&D (as should happen) asking for they comments and direction BEFORE moving forward. Stillwell has done this for 30 years and should have known better. To blame the Council members was absolutely lame, blame the Administration, they led you a stray not the council. The process he took was the wrong one and it's his own fault.

Reply
Comment_arrow
Patch_comments_icon

Ted Schnell

10:08 am on Wednesday, December 12, 2012

I'm wondering, Craig: Is it fair to blame the administration? The administration's job is to serve the public, in this case guiding developers through the mass of regulations and procedures. That certainly was done, as it is done every day in every city I've covered as a journalist or lived in as a resident.

I recently had a new roof put on my house, and the contractor had to go to the city to get a building permit -- and to make sure the work he planned would meet city expectations pertaining to the building code. When the contractor finished, there was an inspection by the city to make sure the contractor had done as he was supposed to do.

This process is a different because of the elements involving public hearings and, ultimately, because it requires the approval of elected officials. The council's job is to decide policy.

Sometimes the two -- and this would seem to be an excellent -- conflict.

Steve Swanson

11:36 am on Wednesday, December 12, 2012

Ted, in regards to projects, the City of St. Charles has been more concerned with quantity than quality, more concerned with adding "rooftops" to the City than in making sure that the projects are appropriate and will not be overly disruptive to existing neighborhoods.

In the case of the Lexington Club fiasco, anybody with any common sense realized that the number of units was way too dense for the site and would generate way to much traffic for older streets, not designed for that much traffic. The area residents are not "nimbys" who do not want to see development on that site; they want to see a development that will match the density of their neighborhoods and will reflect the type of homes already available--that means no more than 80 single family detached homes, not the 102 townhomes and 28 single family detached homes being proposed currently by Lexington. And what they really feel would be most appropriate for that site would be a complex for independent and assisted living for seniors and for handicapped war veterans, which would mean much less traffic, which would have almost no impact on the school system (in terms of adding more students), and which would create jobs--thus being a win-win for everybody.

Reply
Patch_comments_icon

Ted Schnell

12:00 pm on Wednesday, December 12, 2012

Steve, I never said the area residents were NIMBYs and never implied that, either. My observation from the start is there are opposing views on this, and I understand both sides. I do not claim to have the expertise to say one side it right or another is wrong.

My point in the comment above was that city staff has a job to do -- to serve the public and to do so according to the policies set by the City Council and the laws of the city and the state. To blame the administration for doing its job -- because like it or not, a developer is a member of the public -- puts the administration in a position where its damned no matter how it acts. You can't fault the administration for doing its job. The City Council, not the administration or, for that matter, the residents of a neighborhood, sets citywide policy.

In terms of what the neighborhood feels would be best for the site, I've never argued that. But the developer was not interested in that. The developer pursued his own plan and, ultimately lost.

Reply

Henry James

12:28 pm on Wednesday, December 12, 2012

Ted this would normally be true and was true in past administrations, but for the last at least 6 years that is not the case. Instead our administration choses not to give full transparent disclosure to our City Council. They lead the developers on that they will have votes for the projects as proposed instead of truly listen to the Council feedback. This has come out in several of the Committee meetings including a prior Lexington Club meeting. A good example of this is the fact that the developer of Corporate Reserves had not paid their taxes as of Monday and it was sold as a tax sale. This issue was brought up previously by Aldermwoman Krieger and the administration should have disclosed this to the Council prior to Monday night and this is just one of the many behind the scene things that happen and so the Council and the public is losing trust of the Administration. Lexington Club is another good example of this. In 2009 they came before the P&D Committee for a concept plan review. The Council pretty much gave their blessing and the residents really didn't complain, but this was at a lower density and even a few council members were still concerned about the density and design then. Then 2 1/2 years later they come back with a higher density plan. Now where do you think they got that direction. It definitely was not the Council.

Reply

STC

4:34 pm on Wednesday, December 12, 2012

So, how well will the roads hold up to hundreds of employees and semi-trucks coming and going to an industrial plant built on the site. That is the current zoning, and they could get a building permit for that tomorrow. Something to think about.

Reply

Craig Bobowiec

9:54 pm on Wednesday, December 12, 2012

Well the residents of the area who I know well, all have no issues with keeping it industrial. Many have lived here for 40 & 50 yrs even worked in the old plants and have no issues at all. The streets will hold up just as they have all the years when trucks and employees used them plus the land meets standards without the TI, all they need to do cover in concrete!. What, hundreds of more residents won't do damage or congest the streets at all? It's not the residents are even against single family residentialbeing built, it's the townhouses (where there are none currently) that just don't blend that they have issues with and the CHEAP TRACK HOME PLAN of Lexington. Like 2 floor plans with 6 facades, that isn't quality homes in any way shape or form. If they proposed 80-90 single family homes on similar sized lots are the area, I highly doubt the battle would be what it is. If they proposed a single family or one level attached 55+ community that wouldn't burden the schools with students or lots of traffic, because many would be retired, the people would welcome that as well. The problem is the City and Lexington have no vision and don't get that the demographics show that 10k people are retiring each and every day and will for the next 30 yrs. We have enough of the traditional housing and that is not what the future will require. The smart devlopers who see where the trends are in fact going and who will build to meet that need will be the successful developers of tomorrow.

Reply

Craig Bobowiec

9:58 pm on Wednesday, December 12, 2012

The sad thing is we are dealing with Lexington Homes who doesn't have that smarts to see the future, they want to continue to build what they have built for the last 20+ years which is nothing new and doesn't fill what the future needs will be and the other sad piece is that our City leaders and planners haven't the vision either. Their heads are in the sand thinking the same old thing will keep working.

Reply

Craig Bobowiec

10:42 pm on Wednesday, December 12, 2012

Ted, towards your comment about what I wrote isn't getting my issue. It's fine for the planners to help guide the process of what needs to take place. My issue isn't that, it what Stillwell complained about twice at the meetings and that was (and he named him specifically) that Brian Townsend has for 4 years been assuring them that what they wanted to build would be appropriate and would be approved. Mr. Townsend doesn't have that power nor is it his job title to makeassurances to developers nor tell them what is appropriate or not. That is for the Plan Commission, P&D and eventually the City Council. To deliberately make those assumptions and on top of it not informing the other reviewing bodies your do such is wrong, inappropriate and mislead the developer which is what Stillwell complained about. Mr. Townsend's job title is City Administrator, not City Planner, not Planning & Development member, not City Council member or Alderman. He doesn't have a vote on any of this and therefore should have simply encouraged Lexington to present a plan as Mc Donalds did for preliminnary review. To mislead someone that they will get approval when you haven't that power nor assurance is dead wrong and has been an issue on other projects too recently like the driving range on Tyler where the people purchased the property because the City again assured them it would fly and the P&D shut them totally down, Hopefully you now understand where I am coming from. Stillwell should have known.....

Reply
Comment_arrow

Brian Townsend

1:46 pm on Friday, December 14, 2012

The Lexington Club project was reviewed as a Concept Plan by the Planning & Development not ONCE, but TWICE. The first time was in November, 2008. The second time was in September, 2009.

As for your allegations that I have been "assuring" the developer that the plan was "appropriate" please document the basis for your allegations. I don't think you have any basis for these statements and I strongly recommend that you not use this forum - or any other - to besmirch my good name.

I have to give you credit for having the courage to post your comments under your own name and not hide behind a pseudonym. You're certainly entitled to your opinions, but you're not entitled to your own facts.

If you'd like to discuss this further, I'd be happy to meet with you at the place and time of your choosing.

Pete Richards

11:09 pm on Wednesday, December 12, 2012

Actually, the zoning for the former Applied Composites site is Light Manufacturing and many thing are not allowed under that zoning. The City made a Plastics recycler move out of a building adjacent to the Applied Composites site because recycling was not allowed under that zoning. He had around 12 employees, made little noise, kept the outside of his factory very clean, and produced no smoke or odors. I think the area residents would rather see ten such businesses on that site than the overly dense project that Lexington Homes is proposing. Even if the traffic were the same, which is highly unlikely, the businesses would create permanent jobs, would not have any impact on District 303 schools in terms of adding more students, and would not require 300 to 500 bomber-truck trips to remove the soil to be remediated because the EPA would allow it all to be covered in cement, like the former Moline Malleable site.

Reply

josephine s.

10:34 am on Friday, December 14, 2012

Over 300 pages of correspondence between developers/ investors, representatives of Lexington & the City, incl. correspondence redacted by the city, were obtained via a resident's FOIA . They indicate hours, years of pre-negotiations between the city & Lexington. If the City have nothing to hide, why were page upon page redacted? At the P &D meeting Monday, Mr Stillwell raised his voice, in fact shouted at one point, ( should have been reprimanded by Alderman Carrignan- was not) alluding to these negotiations in his arguement for their compliance w/ the City. There is a difference between guidance & promises. There is concrete evidence of promises made in the past between City & the owner of The Alibi, the partners in the golf venue-in the very words of these men, frustrated & taken by surprise that their plans had opposition. That's not fair to them or to taxpayers.Townsend has too WAY much reach. That stymies development, because the borderline is being crossed behind "closed doors". We're not opposed to development,aware of the value of the New Urbanism view of infill redev,the fact that opportunites are precious few in STC for revenue-generating dev, compatible & complimentary to the surrounding residential-developed areas.Next, some will try anything to reverse the finding. Cronies & appointees will come forward. Rabchuk spoke agressively pro-multifamily , set against making any changes at Comp Plan mtg. Rogina has tread lightly. Keep that in mind, when voting in April.

Reply
Comment_arrow
Patch_comments_icon

Ted Schnell

12:45 pm on Friday, December 14, 2012

Quick question, Josephine S.: Why do you hide in a cloud of anonymity? This is a question that comes to my mind every time I see someone posting under an alias, but more so when the posts become aggressive and amount to anonymous attacks on someone. Why do you not post under your true name? Is it because you have something to fear or that you do not want to be held accountable for what you say? Or is it both?

Comment_arrow

joss

12:49 pm on Wednesday, December 19, 2012

Schnell, I'm shocked that you, as a "journalist", would chastise anyone for posting 'anonymously' (not that Josephine S. is really anonymous) and then attack her by stating " Why do you not post under your true name? Is it because you have something to fear or that you do not want to be held accountable for what you say? Or is it both?", as if these two choices are the only possible explanations for her decision not to post her full name! Vehement reactions to those who post on stories you author! Aren't there ethical rules for journalists that address this type of conduct?

josephine s.

10:44 am on Friday, December 14, 2012

And the JRB did not vote. They were told by DeWitte reading a letter written by (I wonder who?) they had no obligation to vote, or reconsider the TIF, under state statute, because it was still in draft form. Despite the TIF being increased by 23% (& statute says 5% or more, it goes back for review), they cited that technicality to the Board, and the JRB sat silent, save for a reading of a D303 letter restating support of the cleanup. 50% of the TIF is for site levelling & soil removal and backfill primarity because of the plan of development, not the cleanup. If you examine the engineers Sept. 2011 soil report, of the 11 concern areas, heating oil tank removal and solid garbage & unstable fiberglass removal are the main recommendation. There are no "volatile organic compounds" ( must remove for commercial or residential development) in the soil anywhere near levels needing remediation. This mantra of cleanup needs perspective.

Reply

David Amundson

11:43 am on Saturday, December 15, 2012

Can anybody answer this question: was this the first time that the TIF was up for a vote in front of members of the City Council? Past affirmations of the PUD are meaningless, as they really have nothing to do with acceptance of the TIF. Were there any prior votes taken in front of City Council or any of their committees that affirmed the TIF?

Reply

josephine s.

8:45 pm on Saturday, December 15, 2012

Ted, Hmm. Not sure why you're targeting me. My post was not agressive, it contains facts provided to me by a resident. I am removing myself from your forum, because it is you, who is being agressive to me. Kind of scarey, thinking you're judging who is who and questioning our identities. I don't care to give you, or anyone else, my last name, sorry. It is not required here-so why single me out?

Reply
Comment_arrow
Patch_comments_icon

Ted Schnell

9:37 pm on Saturday, December 15, 2012

Josephine, I think I raised a legitimate question. You made a couple of statements that sound impressive on the face, but which you did not document. You have made similar comments before. In this instance:

"There is concrete evidence of promises made in the past between City & the owner of The Alibi, the partners in the golf venue-in the very words of these men, frustrated & taken by surprise that their plans had opposition. That's not fair to them or to taxpayers."

And

"Townsend has too WAY much reach. That stymies development, because the borderline is being crossed behind "closed doors".

The city administrator (city manager in other communities) always has "reach" because of the position of authority he is in. I keep reading, some of which have been yours, that imply something improper is going on in City Hall.

Yet I have heard similar kinds of things in other communities I have lived in -- some larger, some smaller than St. Charles. And when the dust settles, generally, it comes down to the city administration doing its job to serve the citizenry, which includes developers and businesses.

Stillwell's anger was directed at the City Council. He blamed the council for leading his clients on, vote after vote. That tells me they associated the development plan with the TIF. Such confusion is not all that unusual. I have seen it before on other development issues.

Vanessa Bell-LaSota

9:13 pm on Saturday, December 15, 2012

David, This is the first time through-they kept pushing TIF consideration into future meetings until the Plan was accepted-said the two could not be considered together, anytime discussion was raised from the residents or Council itsself. Any records I have-and between J. & I, I think we have all minutes of all meetings-the TIF discussion came after the Plan, so, only one time. As you know, the developer said but for the TIF, they could not afford to build, so it kept getting entangled in discussions along the way.

Reply

josephine s.

1:30 am on Sunday, December 16, 2012

Ted, I go back many years, back to the Fred Norris administration, so, my observations have the perspective that comes with a long history of watching the dynamics in town, comparing leadership, staff, "keeping an ear to the ground",for the facts, not just taking blogs at face value. I appreciate your comments, but I saw 2 instances (i'll get you the dates of the minutes) for your "concrete evidence"....with the owner of the Alibi and with the co-owners of the proposed golf venue on the east side, among many others. Well, I'll see what the minutes might show you-many other examples....it appears to me to be more than serving the community. Maybe overserving.....but, after this, I am taking a holiday break-home alot, w/ some health issues, leads me to the computer. Too often! But, I enjoy your reporting. Think I've heard enough of me for awhile. I will get back w/that info, then, on to Christmas!

Reply
Comment_arrow
Patch_comments_icon

Ted Schnell

2:40 am on Sunday, December 16, 2012

Thanks for your kindness Josephine. I tend toward caution on the comments like this because of the ease with which people launch personal attacks and diatribes. Often, they are lobbed anonymously, which I think lacks accountability (kind of like screaming fire in a crowded theater), and more often than not are based on either opinion, which is not necessarily based in fact, or based on assumptions or deductions which likewise may not be based on fact.

My loyalty, as it were, is to the truth, which is not always popular in an age where people seem to look more toward information sources that validate their opinions rather than detail the truth.

I look forward to looking over the information you want to share and with you good health -- and a merry Christmas!

Comment_arrow

Mayor D

7:25 am on Sunday, December 16, 2012

Ted- I too, look forward to seeing that "concrete evidence" that whoever Josephine is claims to possess. In addition, I encourage you to continue to flush out the true identities of posters (or should it be imposters) who continue to hide behind the anonymity provided them by Patch's policies. Wouldn't it be interesting for voters to know that political candidates for public office might be hiding behind some of these "personal attacks and diatribes," or comments that lack any "accountability" as you have so appropriately suggested ?

Patch_comments_icon

Ted Schnell

1:40 pm on Sunday, December 16, 2012

Something like eight years ago, there were several incidents involving Wikipedia that exposed a flaw in the ability to post anonymously on the Internet. Some political campaigns had created Wikipedia entries about their candidates, their stands on issues, etc.

What they did not realize was that anyone with a computer and an email address could register to become a Wikipedia "editor." Wikipedia was founded with the premise of being an online encyclopedia that would be continuously updated by an online community of people who cared about accuracy and the changes brought about by new scientific discoveries.

Wikipedia's founders apparently overrated human nature. Some political hacks edited the entries of their political opponents to make them look bad. It was a scandal at the time but amusing to many. Yet it continues to illustrate the caution one must use when consuming information on the Internet. Some sources are more reliable than others.

I'd infinitely prefer to be a reliable one.

Reply

Leave a comment