HomeMy WebLinkAbout13.7 A RESOLUTION TO WAIVE THE SITE CONSTRUCTION FEES REQUIRED FOR THE DIMEO BROTHERS REDEVELOPMENT PROJECT FOR PROPERTY LOCATED AT 2400 EAST OAKTON STREET, MOUNT PROSPECT, ILLINOISM+awn �'xyt�lts�=e
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Subject A RESOLUTION TO WAIVE THE SITE CONSTRUCTION FEES
REQUIRED FOR THE DIMEO BROTHERS REDEVELOPMENT
PROJECT FOR PROPERTY LOCATED AT 2400 EAST OAKTON
STREET, MOUNT PROSPECT, ILLINOIS
Meeting May 6, 2025 - REGULAR MEETING OF THE MOUNT PROSPECT
VILLAGE BOARD
Fiscal Impact (Y/N) Y
Dollar Amount Not applicable
Budget Source Not applicable
Category CONSENT AGENDA
Type Action Item
Information
DiMeo Brothers, Inc. (the DiMeo Brothers) is a construction company currently located in Elk
Grove, but looking to relocate to 2400 Oakton Street in Mount Prospect. The property at 2400
Oakton Street is currently vacant. The DiMeo Brothers have been working towards obtaining a
building permit to develop the site since 2023. On February 6, 2024, the Village granted
Conditional Use approval to construct a 29,600-sf combined office/warehouse building, and a
contractor's storage yard, including the outdoor storage of construction materials, construction
equipment, and construction vehicles.
The property at 2400 Oakton Street is a particularly difficult site to develop as it has several
challenging features and requires additional approvals not needed for typical developments:
• The site was crossed by Nicor and ComEd. The DiMeo Brothers have worked with both
Nicor and ComEd, and both easements have been vacated.
• The only driveway access is off Oakton Street, which is under the jurisdiction of the
Illinois Department of Transportation (IDoT). IDoT has reviewed the proposed site, and
the design engineer is working to address IDoT's comments and resubmit for the IDoT
permit.
• The receiving sanitary sewer system is owned and maintained by Elk Grove Township
(EGT). Approval has been obtained from Elk Grove Township for their proposed sanitary
service connection.
• Higgins Creek flows along the north and east side of the site. Because the proposed
development involves work within the floodway of Higgins Creek, permits are required
from both the Illinois Department of Natural Resources/Office of Water Resources
(IDNR/OWR) and from the Metropolitan Water Reclamation District of Greater Chicago
(MWRD). In addition, MWRD approval is also required for the sanitary service and the
stormwater management facilities. Both the IDNR/OWR and MWRD permits have been
issued.
Because the floodplain of Higgins Creek covers much of the existing site, a portion of
the site must be elevated to create a building pad above the base flood elevation. The
design for elevating the building pad must be approved and a Conditional Letter of Map
Revision (CLOMR) issued by the Federal Emergency Management Agency (FEMA) prior
to beginning work on the building. The design has been submitted to FEMA and is
currently under review.
The challenges noted above have made this a particularly difficult site to develop. Several
developers have shown interest over the years, but all but the DiMeo Brothers passed when
learning of these difficulties. Addressing all of these difficulties has also made this a
particularly expensive site to develop. It is estimated that the sitework alone (no building
costs included) would cost $2,750,000, $1,000,000, of which would be to provide underground
concrete chambers to provide 2.8 ac-ft (121,900 cf) of stormwater detention storage plus 4.1
ac-ft (178,700 cf) floodplain compensatory storage.
It should be noted that Development Fees are calculated based on the estimated site
construction costs. Because the construction costs are unusually high for this site, the
development fees are similarly elevated:
• Public Improvement Guarantee (PIG) _ $33,350 (for public sidewalk & restoration
along Oakton Street) (Return upon completion)
• Construction Nuisance Abatement Deposit (CNAD) _ $91,875 (Refund after
completion)
• Site Construction Fees = $91,875 (non-refundable)
• Maintenance Guarantee = $3,335 (due upon completion of work; release after 24
months)
In recognition of the unusual burdens necessary to develop this site, staff recommends that
the Village Board waive the non-refundable site construction fees. Specifically, staff
recommends requiring payment of the PIG, CNAD & MG as these funds (all refundable
deposits and guarantees) are our best leverage to have any lingering punch list items. In
addition, staff recommends waiving the Site Construction Fees ($91,875).
One last note: The Village is currently installing Village watermain along the west side of the
DiMeo property. Badger Road is privately owned, and there was no opportunity to install the
new main along Badger Road. The DiMeo Brothers granted the Village an easement on their
property for the main. Waiving the site construction fees could be considered as compensation
for granting the easement. Although the Village rarely procures private easements, the
estimated value of the easement across the DiMeo Brothers' property utilizing IDOT property
acquisition protocols is $187,500 ($25/SF @ 7,500 SF = $187,500).
Discussion
Not applicable.
Alternatives
1. Pass a resolution waiving the Site Construction Fees for the DiMeo Brothers
redevelopment project at 2400 East Oakton Street.
2. Action at the Village Board's discretion.
Staff Recommendation
Staff recommends that the Village Board pass a resolution to waive the Site Construction Fees
($91,875) required for the DiMeo Brothers's office building and contractor's storage yard
redevelopment project at 2400 East Oakton Street.
Attachments
Resolution DiMeo Brothers site construction fees waiver
RESOLUTION NO.
A RESOLUTION TO WAIVE THE SITE CONSTRUCTION FEES REQUIRED FOR THE DIMEO
BROTHERS REDEVELOPMENT PROJECT FOR PROPERTY LOCATED AT
2400 EAST OAKTON STREET, MOUNT PROSPECT, ILLINOIS
WHEREAS, DiMeo Brothers, Inc. (the DiMeo Brothers) is a construction company seeking to
redevelop the property located at 2400 Oakton Street; and
WHEREAS, on February 6, 2024, the Village Board granted Conditional Use approval to construct a
29,600 square foot combined office/warehouse building and a contractor's storage yard; and
WHEREAS, the property at 2400 Oakton has challenging features and requires additional approvals
not typically needed for developments, making this a costly site to develop; and
WHEREAS, in recognition of the unusual burdens necessary to develop this site and to support
economic development in South Mount Prospect, waiving the Site Construction Fees of $91,875.00
would be beneficial.
NOW THEREFORE BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE
OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS, PURSUANT TO ITS HOME RULE POWERS:
SECTION ONE: The Board of Trustees of the Village of Mount Prospect do hereby authorize the
waiver of Site Construction Fees required for the DiMeo Brothers Redevelopment Project for the
property located at 2400 East Oakton Street in the amount of $91,875.00.
SECTION TWO: This Resolution shall be in full force and effect from and after its passage and
approval in the manner provided by law.
AYES:
NAYS:
ABSENT:
PASSED and APPROVED this 61" day of May 2025
Paul Wm. Hoefert, Mayor
ATTEST:
Karen M. Agoranos, Village Clerk