Huntley Village Board approves former fire station one purchase; What to expect moving forward
HUNTLEY—Residents that have been following along with the redevelopment project of the Huntley Fire Protection District’s former fire station one building, have probably already heard that the Board of Trustees voted in favor of purchasing the property from the fire department at the March 10 Village Board meeting following a lengthy presentation.
Despite Huntley resident Brent Mullane having shared concerns about the height of the future redeveloped building at the Feb. 28 Plan Commission meeting and two Commission members voting against the approval of the petitioner’s plans, trustees were relatively pleased with the outlook of what’s to come to the village.
Huntley’s Village Manager Dave Johnson explained to the trustees that per the terms and conditions of the purchasing agreement, the village would agree to sell the southern portion of the fire station one property, including the building, to developer Billitteri Enterprises, LLC for $10.
The developer would then agree to obtain financing for not less than 75% of the project costs and must establish an escrow account to pay for construction costs. A performance bond for 110% of the costs to complete the building must also be posted by Billitteri Enterprises.
“The agreement also includes the requirement for the developer to purchase the property to the east at 11011 Woodstock Street, which is planned to be incorporated into a new Woodstock Street parking lot that would be constructed by the village,” said Johnson.
The 5,181 square foot D.C. Cobb’s restaurant that will be incorporated on the ground floor of the fire station one building, has adhered to a 10-year lease. Construction is expected to commence within 30 days after closing, which includes satisfying all of the preconditions outlined in the redevelopment agreement.
Johnson stated that construction of the building shell is anticipated to be completed by Dec. 31 of this year. The village is hoping to complete the adjacent parking lot by May 1, 2023.
In addition to being required to present monthly updates to the Village Board, Billitteri Enterprises is expected to have the D.C. Cobb’s restaurant open for business by June 30, 2023. The developer must additionally obtain a final certificate of occupancy for the entire building by that same date.
“Provided that the developer timely completes the redevelopment as agreed and submits the required documentation and meets all other conditions, the developer then will receive reimbursement for certain TIF eligible expenses from the TIF fund, which at this point, [is] estimated to be $386,000,” said Johnson. “At least 60% of the incremental property tax revenue will be retained by the village and up to 40% of the increment would be used to reimburse the developers, as I referenced, up to a maximum of $386,000 and that’s projected to occur in the year 2032. After that, the village will receive 100% of the incremental tax revenue.”
Johnson assured trustees that there were ramifications set in place if the developer doesn’t meet its obligations by the agreed-upon dates.
“All final certificates of occupancy are to be issued for the apartments and the restaurant by June 30, 2023, or the maximum reimbursement amount would be reduced by $500 per day,” Johnson explained. “Then in addition, if the developer fails to complete the building shell by December 31, 2022, they would immediately pay the village liquidated damages in the amount of $100 per day until such work is completed.”
While the village has agreed to waive building permit fees for the developers, Huntley, in turn, will receive 100% of the sales tax and video gaming revenue generated by the D.C. Cobb’s restaurant.
After Johnson’s presentation, representatives for Billitteri Enterprises stated that they are fully prepared for rises in construction costs, detailing that the vendors they are working with have projections of material costs for the next six months.
As for what the next steps are, at the March 24 Village Board meeting, trustees plan on discussing a resolution approving and accepting the assignment of a property purchase and sale agreement for 11011 Woodstock Street.
“The acquisition costs for the Woodstock Street property are $260,000 plus closing costs,” said Johnson.
