Was this just posted? Why would the village have to buy the land under the Arcade for 2+ million? Look at the whopping brokerage fees associated with the Arcade and the attached condos (the land for which must also be purchased.) Perhaps other folks here would take a look at the four pages and parse them.
Riverside Info » About Riverside
Arcade Building Wish List
(20 posts)-
Posted Thursday Mar 22, 2007 08:33 #
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http://www.riversideinfo.org/arcade/
This is precisely what Resolution 62 is, an opportunity for the Arcade developer to ask for TIF funds (our sequestered tax dollars, NOT going to schools, etc. etc.)
Now, the village does not have to grant the entire list, or any of the wishes, but this is precisely what a TIF is, an inducement for developers. That the developer asks for the moon, can you blame him? Kind of like a childs christmas wish list.
Again, our point with this site is to inform and ask questions. Arcade was a development ready to go without a TIF. Now the developer stalled, with a four page wish list given to the Village. I think most of the people paying attention are smart enough to do the math on this one.
Another reason to vote NO to TIF.
Posted Thursday Mar 22, 2007 08:47 # -
I might point out that the meeting where this resolution was acted upon was the "Special Meeting" held on a weekday morning at 8:30 with this as the only item on the agenda. When asked why the initial response was that it had to be done quickly because there might be some pipes to be placed under Quincy Street and they wanted to that before the street was repaved. (Of course, the developer didn't have building permits then and I don't think he has them yet.) Then we heard all about how we have meetings all the time, and this isn't unusual, blah, blah, blah. The best aspect is that when they were questioned about this Resolution they say, well, it isn't binding, the numbers are just a wish list, we didn't agree to anything that binds us, etc. So if this is non-binding, then what was the purpose of having th meeting in the first place, of acting so quickly that they couldn't wait until the next meeting? I can't imagine the developer is much enthralled to hear from them that "this Resolution doesn't obligate us to do anything." Talk about doubletalk... I sure wouldn't buy a used car from these people.
Posted Thursday Mar 22, 2007 09:44 # -
The unfortunate reality of the Arcade Building is that the developer paid way to much in aquiring the property and under estimated the cost of rehabbing the building. I'm guessing his financial bottom line is looking real thin now. That along with the slowdown in the realestate market has given them reason to pause. The hard question is, do we as a village want to help get the project back on its feet, or do we let the Arcade building sit. I'm not sure how the Tif issue will come out but its my feeling nothing is going to happen at the arcade builing for quite awhile.
Posted Thursday Mar 22, 2007 10:44 # -
As a homeowner with a family, I am completely responsible for my budget and bills. I pay my taxes on time and pay all my other bills on time. Frankly, like most of us, I work for free until May, as that is how long it is estimated we work to cover our tax responsibilities. So I work for twelve months to earn seven months pay. I have no problem with that. And guess what, I don't look for a handout. Why should we as taxpayers prvide a handout to the person who bought the Arcade building? It's his problem, not mine. No one forced him to overpay for the building. Because he made a bad business decision, I and my fellow residents have to bail him out? You have got to be kidding!!! This is why we are against the TIF.
Posted Thursday Mar 22, 2007 11:16 # -
Eric - I agree with you that the developer probably made a mistake on the price. But he's an experienced guy, and when he didn't meet his own schedule for plans, demolition, etc., and when he caused his tenants to leave, that isn't the time for the Village to step in and try and bail him out.
Posted Thursday Mar 22, 2007 11:37 # -
I refuse to be held hostage by another developer like Henningers. VC is the outcome of that. Force Arcade to keep everything up to code, and rent his empty spaces, which are only vacant because of him. If he can't make it happen, sell.
Posted Thursday Mar 22, 2007 11:42 # -
The Arcade Building, because of its historic significance, is eligible for major federal tax relief to offset project costs, including the 20% Federal Rehabilitation Tax Credit, the Preservation Easement Donation tax deduction (typically valued at 10-15% of purchase price), and "Green" energy efficiency deductions.
The Village can help the Arcade developers by educating them about the financial benefits of the federal programs, providing them with the paperwork necessary for NPS certification, and setting up introductory meetings with the state historic preservation office and a preservation organization such as Landmarks Illinois that accepts preservation easement donations. These entities, together with a tax advisor, will be able to help the developers tailor their restoration project to take maximum adavantage of the tax credits and deductions.
The Preservation Easement Donation Deduction has been increased to 50% of AGI through the end of tax year 2007, after which time it will revert to 30% unless Congress passes new legislation. So now is the time to do it. As the NPS Certification process can take 6-8 weeks this is not a course of action that can be initiated at the last minute.
The Village can do a lot by walking the developers through this process and checking back with them from time to time. I believe these federal dollars can swing the Arcade project back on track.
Posted Thursday Mar 22, 2007 12:06 # -
Aberdeen, I do not think anyone in the Village is capable of walking Wexford through that process. You might want to contact Joe Pilewski, Mike Sedivy or Charlie Corbisiero to see if the EDC would like to invite Wexford in to discuss your strategy. You could walk them through it. It might be a way to show Wexford that Riverside would like to work with them but we won't give away the store.
Posted Thursday Mar 22, 2007 12:58 # -
I'll bet if Wexford put Aberdeen in charge of the Arcade project it would move and be profitable. The Village has doubtlessly raised their expectations of free money and once that door is open, like everyone who says they have enough they will want more. I vote for Aberdeen.
Posted Thursday Mar 22, 2007 13:35 #
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