HomeMy WebLinkAbout01/13/1998 CS minutes
MAYO:1
Gerald L. Farley
Phone: (847) 392-6000
Fax: (847) 392-6022
TOO: (847) 392-6064
TRUSTEES
George A. Clowes
Timothy J. Corcoran
Paul Wm. Hoefert
Richard M. Lohrstorfer
Daniel A. Nocchi
Irvana K. Wilks
V~~:e7~~~~~R~Village of Mount Prospect
VILLAGE CLERK . .
Carol A Fields. ~1 00 South Emerson Street Mount Prospect, illinoIs 60056
~ MINUTES
CLOSED SESSION
JANUARY 13, 1998
The Closed Session was called to order at 8:20 p.m., in the conference room of the Senior
Citizens' Center, 50 South Emerson Street, for the purpose of discussing Litigation and
Property Acquisition. Present at the Closed Session were: Mayor Gerald L. Farley;
Trustees Timothy Corcoran, Paul Hoefert, Richard Lohrstorfer, Daniel Nocchi and Irvana
Wilks. Absent from the Closed Session was Trustee George Clowes. Also present were:
Village Manager Michael Janonis and Assistant Village Manager David Strahl.
There were no previous Closed Session Minutes to review.
Litigation
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~illage Manager Michael Janonis reported to Board members that a Police Officer on the
~ Department had filed for Administrative Review in the Cook County Circuit Court
^ \;J concerning a five-day suspension which the Board of Fire and Police Commissioners had
\0., Yi levied against the Officer after he appealed a three-day suspension issued by the Police
~ Chief. Mr. Janonis explained that the Administrative Review by the Circuit Court was a
procedural right of the Officer. Mr. Janonis indicated that he would keep Board members
informed of the progress of this litigation.
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Mr. Janonis indicated that a recent meeting was held with representatives of Pontarelli and
the Clocktower Condominium Association. Mr. Janonis reported that the Association had
filed Suit against Pontarelli over a dispute with regard to the financial position of the
Association. During that meeting, the Homeowners Association indicated that they were
in favor of the Village working with Pontarelli to identify a substitute developer who could
begin work on the third building. As long as the Village made sure that the outside site
improvements were completed according to the original plan, the Association felt it could
work out its financial problems with Pontarelli without the Village's assistance. Based on
that discussion, Mr. Janonis indicated that an Amendment to the original Development
Agreement could come forward as soon as February. If this can be accomplished, then
the Village can recover the $100,000 in liquidated damages provided for in the original
Development Agreement and the Village could avoid litigation against Pontarelli.
Village Board members were pleased with this most recent turn of events and directed staff
to continue discussions with Pontarelli.
Property Acquisition
. Village Manager Michael Janonis indicated that there are still details to be worked out
regarding the final Real Estate Contract with the Franceks for the Two-Ten East
Northwest Highway property. Apparently, the final sticking point is the status of the
occupant at Ten East Northwest Highway. The Franceks do not want to have to file a
Forcible Detainer and Entry Action against the owner.
Mr. Janonis indicated that he had had recent discussions with the occupant, Mr. Terry
Greco, regarding the status of his occupancy. Mr. Greco indicated that he was looking for
18-24 months at this location. Mr. Janonis indicated that he could not promise him
anything more than 12 months. Mr. Greco indicated that he was looking at other potential
ocations to move his business. He also inquired about what financial assistance the
iIIage may be able to offer him.
Village Board members considered several assistance options. However, they noted that
Mr. Greco's legal position was weak given the fact that he had failed to consummate a
lease agreement with the Franceks prior to the Village's offer to purchase the property.
In discussing options, the Village Board indicated a willingness to utilize the existing interior
build-out program as a means of assisting Mr. Greco in relocating his business.
Village Board members were concerned that assistance should be modest given the
circumstances and the desire not to set a precedent that would be expensive with regard
to future property owners.
Mr. Janonis shared with Board members the appraisal for Two West Busse Avenue. The
l appraisal indicated a purchase price of approximately $325,000. The asking price had
~r recently fluctuated between $395,000 and $345,000. Discussions with the broker indicated
that the seller was very motivated.
Village Board members discussed among themselves the priority of this property vis-a-vie
N the other properties within Phase I. It was felt that this property was not as high a priority
\:\ ~ as some of the larger parcels on the block. It was also noted that there would probably
'" need to be a substantial write-down on the subsequent sale of this property to a developer
because of its limited size and proximity to Main Street.
There was some further discussion by Board members with a consensus that a low offer
be made with the hope of picking the property up for substantially less than the appraised
value. An offer in the area of $250,000 was generally agreeable to all Board members.
Mr. Janonis was also directed to get information regarding existing leases as this could
have an impact on a final decision to purchase the property.
Mr. Janonis shared with Board members the preliminary sales report for the Three South
Wille (junk yard) property and indicated that there was some surface contamination within
the first 18-24" of soil. However, contamination levels were relatively low and would not
. be a cause for concern if the property is developed commercially. It was indicated that
residential development may prove to be somewhat problematic. A very preliminary
estimate on clean-up costs if the contaminated soil had to be removed from the site was
about $100,000.
t was the consensus of the Board that the Village share the results of the tests with the
owner and place the burden on the owner to either agree to clean up the site or offer a
substantial credit to facilitate later clean up.
Board members discussed the feasibility of sitting down with the owners of Northwest
Electric in Closed Session to discuss the possible purchase of the Northwest Electric
property. The consensus of the Village Board was to see if such a Closed Session could
be arranged.
There was also brief discussion regarding who, among staff and elected officials, should
meet with property owners in the Target Areas of the new Downtown Redevelopment
Strategic Plan. It was determined that the Mayor and Village Manager should be the
primary contacts.
On a Motion by Trustee Hoefert, Seconded by Trustee Wilks, the Closed Session was
adjourned at 9:24 p.m. on a unanimous vote by those Board members present. There was
no action taken in open session.
MEJ/rcc
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