THF seeking additional $44,601 reimbursement from Crestwood

Roby, Nieder cast ‘no’ votes on previous reimbursement

By BURKE WASSON

After approving a $295,000 reimbursement in April to the developer of Kohl’s, Crestwood aldermen were set this week to consider an additional reimbursement of $44,601 to THF Realty.

The Board of Aldermen was scheduled Tuesday night — after the Call went to press — to consider an amendment to the Crestwood Point tax-increment financing, or TIF, ordinance to reimburse the developer. The proposal would cover $44,601 of THF Realty’s reimbursable redevelopment project costs submitted by the developer.

THF already has received approval of $2,233,000 in reimbursable project costs from a maximum of $2,285,000, according to an internal memorandum from Economic and Community Development Manager Tryla Brown.

With $52,000 in eligible reimbursement expenses remaining, THF is requesting $44,601 of that to be reimbursed.

The proposal also would cover payment of legal fees to the city’s special TIF counsel paid from TIF revenues once all TIF notes for the project have been paid.

Crestwood aldermen voted 6-2 on April 24 to provide a $295,000 reimbursement to THF for the developer’s $850,000 purchase in 2002 of former Crestwood Swim Club property from Rosebrook Real Estate.

Ward 3 Alderman Gregg Roby and Ward 4 Alderman Steve Nieder voted “no.”

The Crestwood Swim Club, a private organization, now is situated on a lot adjacent to the Crestwood Government Center’s parking lot.

The $295,000 reimbursement estimate for that parcel came from a recently performed appraisal based on market conditions when the city’s back parking-lot area was sold to THF in December 2002.

That $295,000 reimbursement comes from funds generated from a 1-cent sales tax at Kohl’s as part of the Crestwood Point Transportation Development District. That TDD sales tax originally was projected at three-eighths of a cent, but was established as a 1-cent tax in 2003 by the Crestwood Point TDD Board.

The parcel for which THF received reimbursement is used as the Crestwood Government Center’s back parking lot, which encompasses roughly two-thirds of an acre. While THF paid for that parcel, it actually was conveyed to the city by the Swim Club. THF originally requested an $800,000 reimbursement from the Crestwood Point TDD Board. That reimbursement would have included not only the purchase cost for the City Hall back parking lot, but also for former Swim Club property used by Kohl’s for parking.

Because THF acquired property necessary for the Kohl’s development and the Swim Club conveyed the property now used as the city’s back parking lot directly to the city, the parking-lot property is not eligible to be reimbursed through the TDD.

Ian Silberman of THF Realty attempted at an April 19 Crestwood Point TDD Board meeting to obtain $37,119 more than the appraised reimbursement amount of $295,000 for the back parking-lot area.

But that measure was denied by the Crestwood Point TDD Board with a 3-1 vote. Mayor Roy Robinson, City Administrator Frank Myers and then-Board of Aldermen President Jerry Miguel of Ward 3 voted against the consideration of additional reimbursement. Marian Nunn of THF Realty abstained.

A 2001 Board of Aldermen memorandum stated THF would be reimbursed in the amount of $650,000.

The April approval of an amendment to the city’s intergovernmental cooperation agreement with the Crestwood Point TDD Board also authorizes the TDD board to issue separate notes or bonds to finance not only the TDD project, but also the city parking lot’s reconstruction.

The amended intergovernmental cooperation agreement creates a $631,719 project fund for that parking-lot reconstruction, which will benefit from new pavement and additional lighting.

The amendment to the intergovernmental cooperation agreement also authorizes the issuance of bonds to reimburse THF Realty for up to $2.355 million in project-related costs, which include the construction of Kohl’s.

The ordinance amending the city’s agreement with the TDD board also amends the city’s agreement with the Crestwood Point Community Improvement District Board.

Under that section of the ordinance, the CID board will issue notes to THF Realty for up to $515,000 of costs in connection with the project.