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Deerbrook Project Hits Snag

Village Board delays vote on shopping center owner’s request for letter of intent. Trustees approve four-way stop at Osterman and Robert York.

hit a snag when the shopping center owner’s sales tax sharing proposal met with a split among the Village Board of Trustees at their Monday meeting.

expressed skepticism with a proposal which would allow mall owner Gateway Fairview to recover approximately two-thirds of its redevelopment cost, postponed a vote to develop consensus.

“Let’s have staff come back to us and we’ll have the pros and cons,” Rosenthal said of Deerbrook’s proposed letter of intent with the Village. “We should try to have everybody a little more comfortable.”

Deerbrook owners asked the shopping center be declared a separate business district with an additional sales tax of one percent which would be used to defray some of its development costs. Gateway Fairview would pay for the project and be partially reimbursed from the collection of the additional revenue.

“I think they’re being greedy,” Seiden said. “I don’t believe they won’t go ahead with it (if the Village does not agree to the letter of intent),” he added about his perception of the developer’s intent.

Rosenthal hopes the Board can move to the next step at its July 2 meeting when representatives of Deerbrook will return for additional questions and presentations.

In other business, the Board approved the installation of a and moved ahead with plans to grant a special use permit for a photography studio at 720 Waukegan Road.

Patch will have a more detailed story about the Deerbrook proposal Wednesday and an additional article about the stop sign hearing and other subjects discussed by the Board on Thursday.

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RB June 19, 2012 at 08:08 PM
Increasing the sales tax would mean the Village residents who shop there would be paying for the redevelopment. Plus, as someone else says its high enough in Cook County as it is, it would drive people away from shopping there. It's on the boarder with Lake County. People would shop elsewhere. Makes no sense. I'm glad at least two board members saw through this. Board: don't do this!
Bringin' Down Briarwood June 19, 2012 at 09:40 PM
I'm luvin' ya, Deerfield resident, as only one Internet yahoo can love another. Thanks to Trustees Seiden and Farkas for forcing the board to take a step back and evaluate. I don't totally disagree with the village investing (although the 10.25% vs. 7% is a great argument against), but this better not be a one way street. There's a whole lot of ways this can be negotiated better for the village. I think it should start with a long-term measurement - not a simple lump sum for construction. I hope the Board is also discussing what stores will be in the new mall - not generalities. If the developer can't provide names, do not sign until they do. This whole thing has problems written all over it, and if the developer wants a TRUE partner, then terms and commitments need to be VERY clear. If the developer budges at clarity and will only invest at the same rate as the last decade, it's probably time to start negotiating with a heavier hand (zoning?).
Bringin' Down Briarwood June 19, 2012 at 09:50 PM
Steve, simple question I hope you'll ask as you talk to the Board for your next story ... What provisions are in this agreement to help protect the village's initial investment? How does the agreement ensure the developer will invest beyond initial construction and not simply pocket the money after a cheap construction?
David Greenberg June 20, 2012 at 03:33 AM
For 10.25% you'd better believe that your tax revenues will DECREASE rather than increase as you drive shoppers away from the mall. For a small item, sure, maybe it won't be worth the gas to drive to someplace else. But for something larger, where the taxes start to make a difference? Yep - might as well drive to another store, or oh, I don't know - buy online and have it shipped in? The use tax is still less than 10.25%... And using the money to pay off the cost of the development? HA! This is modus operandi for developers folks - use other people's money, then if the project fails, oh well... Let them put up 100% of their own money, or tell them to forget the whole thing. Kudos to the Trustees who said no...
J.Lyn June 20, 2012 at 11:39 AM
Ed... I live on the corner of York and Osterman... I can personally attest that there is a speeding problem on Osterman. I see it daily. If the village police are capable of enforcing the law they have not done such. Personally I think they have better things to concentrate on...and they must...because the speed limit is not enforced. A stop sign is very much needed...because one of these days someone is not going to yield to that pedestrian and the village will have a tragedy to contend with.

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