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City To Buy George’s Sports Center Building for $225,000

Building purchase to close by year’s end with an eye toward partnering with the Arcada to provide additional amenities.

The St. Charles City Council, in its last scheduled meeting of 2012, voted unanimously Monday night to purchase the former , with an eye toward partnering with the , to provide it with additional facilities.

The cost of the $225,000 purchase will be paid for through savings the city achieved on some of its capital projects over the past year, or from capital projects that were planned but can be delayed, said St. Charles City Administrator Brian Townsend.

George’s closed in the second quarter of the year after a more than 40-year run. The business, owned by the Poczekaj family, offered a variety of sports equipment and gear. Its first floor was devoted to retail use, and the second floor held two apartments, which have been vacant for several years, Townsend said.

After they closed the business, Townsend said, the Poczekaj family approached the city to see if it would be interested in purchasing their building.

In recent years, the property had become a top target for downtown stakeholders, including the Downtown St. Charles Partnership, because of its appearance and its prominent Main Street location, he added.

“What happened earlier this year is that the owners closed the sporting goods store, they approached the city about a potential interest in purchasing the property, and we were able to negotiate what we believe is a very fair and attractive price — $225,000,” Townsend said. The building totals 6,600 square feet on the first and second floors.

The building is in need of attention, and Townsend said, and the city has identified some of those needs, which it will sort into short-, mid-, and long-term priorities.

Some of the needs include roof repairs, some structural stabilization work needed in the basement, new doors and windows, tuck-pointing the masonry, among others. “So there are further investments that will need to be made to bring the building up to the proper conditions,” he said. “And we want to make the building look nice,” particularly since it fronts on Main Street.

Townsend said the city has not yet entered into talks about partnering with the Arcada in the venture. If that does not pan out, he said the building could be fixed up and put on the market, although “I think our plan would be to hold it for a while.”

Still, the Arcada has indicated in the past an interest in its next-door neighbor as the most logical direction for an expansion.

Related:

  • George’s Building Could Be an Annex to Arcada

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Ted Schnell (Editor) December 18, 2012 at 09:29 pm
Joss, please refrain from making personal attacks. They are prohibited in Patch's terms of service, which you may review at http://stcharles-il.patch.com/terms. I would direct your attention to this section:
Termination of Access We want to keep Patch a safe and friendly place, so in addition to any right or remedy that may be available to us under these Terms of Use or applicable law, we may suspend, limit or terminate your account, or all or a portion of your access to the Service, at any time with or without notice and with or without cause. In addition, we may refer any information on illegal activities, including your identity, to the proper authorities. Including the police and/or your parents. Thanks for your attention to this.
joss December 18, 2012 at 09:31 pm
That wasn't meant as a personal attack, just stating facts!
Henry James December 18, 2012 at 09:34 pm
All though I tend to be critical of the City on many issues. This is not one of them. This was a good move as this site has been an eyesore for many years, and regardless of what happens to the Arcada that building could impact its success. For this property to be available for a good rate buy it now and insure something gets done with it vs sitting vacant for months or years with noting going on. We have had that for way too long. It is nice to see the City being proactive for once.
Ted Schnell (Editor) December 18, 2012 at 09:36 pm
Posting the links to factual business stories is not the problem. It's the rather sarcastic tone and the choice of a demeaning phrase. Ventures do fail, but it is not always bad business that causes them to fail. Consider yourself warned. Please abide by the terms of service.
Dillon64 December 18, 2012 at 09:47 pm
LOL!!!!!!
joss December 18, 2012 at 09:54 pm
Sarcasm is not forbidden under the term of service. Stating that it is bad business that someone has to resort to having to a third party intervene before a business owner keeps his promises and complies with the law to refund money is not demeaning, it is common sense.
Sue Klinkhamer December 18, 2012 at 10:06 pm
This is the same as when the City bought the Century Station building and turned it into a fire station/office building. Whenever a property is available at such a good price it makes sense. Good move on their part!
joss December 18, 2012 at 10:10 pm
The key difference being that in your example, the city used the building for its own governmental purposes vs. the issue at hand where the city purchased a neighboring property on behalf of a private business venture, *just in case* maybe said private business venture might want to expand their operations! Maybe/might being the operative terms here since, according to this article, Arcada owners/operators never requested this or even expressed any interest in doing so. Again, if it is such a great investment, why didn't Arcada do it themselves? Is the City of St. Charles now in the business of preemptively subsidizing favored businesses?
Ted Schnell (Editor) December 18, 2012 at 10:17 pm
Joss, I have nothing at stake in this. I saw Ron Onesti speak once at a City Council meeting and have had no other contact with him, and yet I perceived your remarks as abusive. Sarcasm by itself may not be an attack, but your comment was. Do not do it again.
Henry James December 19, 2012 at 12:20 am
Joss again I will note that property has been in bad shape for a long time. Some may remember The old Hoops building now the Bee Hive. Very similar situation. This time though the property became available for a very reasonble price and so the City could purchase it. That was not the case with the Hoops building. The City however did invest in Hoops to get it fixed. Expansion for the Arcade is just one possibility something the compliments the Arcada would be good too. It is definitely a location that will get noticed. I again stand with the City on this decision. It is an investment in our downtown. If that building sits much longer without help it won't be there and that would not be a loss of a potentially beautiful building. Now the only thing I ask of the City is don't let it become a bar.
Bill Troth December 19, 2012 at 12:33 am
Ms. Klinkhamer,
The acquisition of the sporting goods store property is a private venture, not an acquisition for use by the city. If the property "is available at such a good price" perhaps you and Mr. James should pool your money and/or attract other investors and buy the building, renovate it and sell it at a profit. Risking your investment to make a profit would be comendable. Putting taxpayer money at risk is a whole different situation. The City buying the building is likely to happpen, given the unanimous vote in the City Council. It will be interesting to see what the return on the taxayer's forced investment will yield.
David Amundson December 19, 2012 at 02:56 am
I too find this situation a bit troubling. On one hand, I want to high-five the Council for finally being pro-active, and for doing something that demonstrates some sense of concern for our downtown. On the other hand, I totally get the arguments presented by Mr. Troth; the City really has no business making speculative investments with the taxpayer's money. If this really was such "a good price" why did no other investors show up to purchase it for said "good price"? If no other investors have shown any interest, was the "good price" really all that good? Twice already this year (if memory serves me correct) the City has proved itself ready and willing to pay more than appraised value for a piece of land they needed. That track record alone should give us all some pause. Beyond that, at just about any meeting where development is discussed, City Staff are quick to point out that they have no development or construction expertise; what on earth are they going to do with this piece of property when there is no in-house skill to be able to do anything with it, other than to re-sell it? If the ultimate intention is to re-sell it, then why bother to buy it in the first place? If they simply need more office space, then please just say so, and save us all the wasted time and energy. Last, I'm with Henry on one point: anything but a bar.
Craig Bobowiec December 19, 2012 at 01:31 pm
I think the City should be willing to help a business to ehlp revitalize our poor commercial situation, but we have already given the Arcada financial help with other things and it is starting to look a bit strange that 1 business is getting all the attention and help while we watched as Pi Pizza close, as did the Bistro in Fox Island Sq. My question is why only the Arcada, why aren't we bending over for all these other struggling businesses and property onwers with vacant commercial. $225,000 + the needed rennovations will easily bring the total upwards of $300K, that' is a lot of funds that could have been spread to many businesses instead of to just one.Now we are looking at setting up this east gate business district which in my humble opinion will burden the businesses to charge an extra % of sale tax to fund their own revitalization while the Acrada gets these special perks and handouts without any detriment. What the City is trying to do with Arcada is what they should now be willing to do with ALL businesses in town to revitalize the business climate. For anyone to really think forcing a special sales tax on certain businesses because of their location (especially when they are located in a "run down dead zone" of our City) is going to bring shoppers and really work is beyond me. If you are goning to do for one, the City must do the same for all.
joss December 19, 2012 at 02:19 pm
Some excellent points being made here, in terms of the city supporting businesses. However, if the city wishes to dole large chunks of tax payer's funds for private enterprises, at least let them do so in the form of some formally established revitalization grants. A business could *request*/apply for such grants along with a business plan that would be vetted for viability. This would create fairness and transparency while allowing the city to support worthy local businesses, rather than randomly handing out financial favors to their cronies.
Bill Troth December 19, 2012 at 03:40 pm
Good point. When government injects its self into the market at least two groups are negatively effected. Taxpayer obviously loose the freedom to have their property (money) used at their discretion. The second and more direct group are the market competitors to the group government favors with their intervention. It a car dealer is given a sales tax abatement and land improvements by the government for example (seem familiar ?) to open a new location to sell used cars; the other competing car dealers are harmed because they do not have that taxpayer supplied benefit. At least a uniform and public policy on the criterea for granting these benefits would not raise any questions of "quid pro quo" between the members of the coucil and the people that get the benefits.
joss December 19, 2012 at 05:15 pm
Hey Schnell, why have my comments (and yours) been deleted? Censorship at its worst! Why is the Patch so defensive about Arcada/Onesti?
Ted Schnell (Editor) December 19, 2012 at 06:37 pm
I deleted the comment I perceived as attacking Mr. Onesti -- I did not think it fair to leave it up there. I did not realize deleting the comment would delete the entire conversation.
joss December 19, 2012 at 07:22 pm
Hmm...seems the City of St. Charles has already given Onesti $80k, of which he was supposed to repay all but $41,250 (no mention of whether Onesti ever repaid this partial "loan") and given another $65k for various interior improvements , not to mention various tax breaks, etc. Google "Onesti" and most results also include Dewitte...I have no problem with the city fairly and transparently supporting local businesses, but I do have a problem with cronism.
http://stcharlesil.gov/sites/default/files/meetings/2011/attachments/a03-07-11-cc-IIB2.pdf http://www.dailyherald.com/article/20100307/news/303079944/print/ http://insidestcharles.com/category/collaboration/page/2/
joss December 19, 2012 at 07:23 pm
Then why not restore it?
Karl Brubaker December 19, 2012 at 08:23 pm
My Onesti has done tremendous things for the City of St. Charles and its residents. He (anonymously) volunteers his time, energy and facilities to local schools and rents the facility for very little to local dance and performing schools.
The City has invested in Mr. Onesti and he has returned the favor. This purchase seems like a very good investment. The building was deteriorating rapidly and the purchase was for the good of all St. Charles- IMO. It's disappointing to see the amount of vitriol and hatred spewed on these forums.
joss December 19, 2012 at 08:27 pm
Karl, where did you see "vitriol and hatred" here? Just wondering...
Ted Schnell (Editor) December 19, 2012 at 09:11 pm
Because your initial comment was an attack. I do not think it should remain up there.
Craig Bobowiec December 19, 2012 at 09:12 pm
I agree, I think Ron has done great things in keeping the Arcada going as well as trying to give back to the community, but at some point if he needs more space or upgrades, in America it is called bringing in partners or private investors. The City (meaning tax payers too) has truly done it's fair share of trying to help with his new sign and interior upgrades and it's time in my eyes they start helping others who may also be in need. With all the pretty famous names he brings in, you would think he would be doing fairly well financially wouldn't you? If he is not, I think as a businessman, he needs to negotiate these deals better so that he is making enough, as it seems the performers must be doing well or else they wouldn't keep coming here. For me it sounds like an awful large perk of my tax dollars to be buying and rennovating this building if it is only going to help his business and nobody else. As a tax payer I would like to see the projected return on investment of my tax dollars in this project and the time frame. I also agree with Joss in regards to the "grants" which there has been a program for years for exterior facades and signage but over the past several years due to the economy and available funds, it's taken a hit. That's why I find it amazing that we can keep finding this money for one business when we can't increase the grant fund back to where it originally was or even increase it to offer more help to others?
Steve Swanson December 19, 2012 at 09:33 pm
Who ultimately is the beneficiary of this purchase? The guy who leases the Arcada theater, the guy who owns the Arcada building, or both of them? I do not know what the length of the lease is and how much time is left on it but it would seem somewhat suspect to help the one who leases the theater unless the City knows that he will be there for years to come.
joss December 19, 2012 at 09:34 pm
Craig---thanks for your post. This issue becomes more and more interesting. According to the city, the Facade Improvement Grant is a a 50/50 matching grant program administered by the City of St. Charles to encourage the rehabilitation and restoration of downtown building facades which gives a up to $10k to qualifying properties and because of budget limits"Limitations apply to the overall grant amount. In general, the overall amount of grants for any property cannot exceed $20,000 within any five year period". http://www.stcharlesil.gov/documents/fa%C3%A7ade-improvement-grant-program
Craig Bobowiec December 19, 2012 at 10:10 pm
Joss your description of the grant program is correct, that then creates the question as to how and why does the Arcada keep getting these perks? Especially when you consider that any other property owner going for the Facade Grant can only do so every 5 years. It just doesn't seem fair does it? Again I do not wish to see Ron or the Arcada go away, but there must be an explanation and limit as to when one business has received more than their fair share of "special treatment" for lack of a better phrase. I would like to see money spread around to other businesses as freely as it is for the Arcada so we finally start seeing a turn around in our commercial businesses climate which again in my opinion plays second fiddle to all the surrounding Cities to the North and South. I love St. Charles but think we fail miserably in recruiting new and exciting businesses and retaining those that we have. It still amazes me that we supposedly have no communication with the owners of the Charlestown Mall. For a fraction of the money we wasted on a consultant to tell us what we already new about the Mall's potential which does nothing for us, We could have sent City Officials to CA to make formal contact and meet with them which could have broken the ice and actually have something to show for it. At a minimum we might have an answer as to why they won't talk to the City which seems more than we know today. And what would would it have cost us? Maybe 1/5th of what a useless study did?
Craig Bobowiec December 19, 2012 at 10:21 pm
Ya know what would be a real nice and fair gesture from the Arcada back to all STC taxpayers would be to give us all a 10% discount on all tickets residents purchase until the debts and perks are paid back. Kind of like the resident discount we receive from the St Charles Park District since our taxes fund their budgets. LOL
Bill Troth December 20, 2012 at 02:10 pm
The reference to "returned the favor" exemplifies one of the many problems with government interfering with the free market. Who determines the value of the "favors" and how do we know that the "favors" did not benefit only one individual or special interest and not all of the taxpayers? If a private business is neither supported with taxpayer benefits or hinderd by government regulation or targeted taxation their ability to attract customers and operate the business profitably determine its success or failure and there is no concern about cronyism or benefit to the few.
joss December 20, 2012 at 03:14 pm
Craig, you work for the City, right? Do you know if there is a list of businesses that have applied for the Facade Grant, and, if so, is it publicly available?
Kim Malay December 20, 2012 at 03:34 pm
Joss no Craig does not work for the City. I use to and I am not sure if they have a formal list still, but I use to manage the program and nearly all of the downtown buildings that have had exterior renovations on them over the last 17 years have participated in the program, including what is now known as Beehive, the Harris Bank block across from City Hall, the entire building that houses Arcada, Starbucks etc..., and the Old Erik and Me building just to name a few bigger buildings that have participated in it and received more than the normal $10,000 allowment.
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