Aldermen Grill Rep of One West Main Developers

St. Charles aldermen, meeting Monday as the City Council Planning and Development Committee, grilled a representative of the developers of One West Main Street about why there has been so little movement on the project.

One West Main Street is the site of the former Manor Restaurant at the southeast corner of Main and 1st streets. Because of its location at the northern gateway to the First Street Redevelopment, it is considered a key component of the project.

Joe Klein, representing SMN Development, responded to aldermen’s questions, which touched on where the developer stands in terms of financing for the project, what type of building the developer is considering, and how soon the developer might be able to move forward on construction.

Klein could provide few of those details, saying that SMN is in the process of signing a contract with a broker to pursue possible tenants and to market the property.

But Klein also pointed out that the project, which has stalled since the collapse of the housing market and the Great Recession, left a great deal of uncertainty in the marketplace — and a resulting unwillingness to move forward on new ventures.

SMN’s plans for the building are for a four-story structure. Klein said SMN is looking at the possibility of splitting the first level between a retail tenant and an office tenant, and developing the upper levels as residences..

But SMN has only begun considering some of those options as a result of talks with city staff in recent months, he said, and has not yet conducted an analysis of the configuration will play in the project’s financial viability.

Still, he acknowledged the renewed, albeit cautious optimism about development that is spreading nationally, including in the St. Charles area.

But SMN does face challenges, Klein said. While there is money available from lenders for the project’s residential component, lenders want to see 60 percent to 70 percent of the space preleased before lenders will consider financing.

Ward 1 Alderman Ron Silkaitis appeared to be the first to advance skepticism about SMN’s plans for the property, asking several times for a timeline on the development and about financing.

“I don’t feel you are moving fast enough. You have a plan, but no financing,” he said, pointing out that the city has granted SMN multiple extensions on its development agreement with the city. “But there’s no activity … I am not happy.”

Ward 3 Alderman Todd A. Bancroft also appeared to have some doubts. He also noted that SMN’s partners all have the respect of the council. But Bancroft said the developer has two challenges before it if it is to win another extension of its development agreement with the city. “... You have to convince us that this deal is economically viable. … The second challenge is you have to convince us that we’ll be better off extending the agreement and letting it play out and why.”

Klein again pointed out that the delays on the project have been a function of what’s been happening — virtually nothing — in a marketplace that has languished during the nation’s economic troubles. The delays, he continued, have not been a result of failures by individuals.

At this point, Klein said SMN needs time to finish signing off on a contract with a broker and to assess whether the residential component the city staff has proposed is indeed financially viable.

“We want to build this building, (but) we don’t want a building that  is empty,” he said.

Ward 3 Alderman William Turner pointed out that the city has extended its development agreement with SMN 10 times and now is looking at a potential 11th extension.

Turner said the City Council is under pressure from residents who want to know what’s going on with One West Main.

By the end of the presentation, aldermen appeared to agree that they want to have a clearer idea of the project’s financial information and a timeline detailing when construction could begin.

Klein said he believed SMN could get that information together in the next 90 days.

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