A corporate landlord will be formally requesting $2 million of taxpayer’s money, a $55 million TIF, and a multi-million dollar giveaway of taxpayer purchased land to McHenry’s City Council on Monday, July 15, at a 5:30 p.m. special Committee of the Whole meeting open to the public and with public comments.
Geneva-based Shodeen Group is set to present a two-part development proposal for Green Street/Elm Street and the former wastewater treatment plant site that includes a total of eight apartment rental buildings consisting of 799 apartment rental units, as well as one 130-room hotel.
To build 799 apartment rental units that will solely benefit them as owner of both the property and the land and one 130-room hotel that will solely benefit them as owner of both the property and the land, Shodeen Group is requesting all City-owned property be given to them for free.
Properties include: the former McHenry Savings Bank Building & Lot (purchased for $996,000 with taxpayer’s money), the former Carpet Store (purchased for $450,000 with taxpayer’s money), the former Justen Funeral Home (purchased for $364,000 with taxpayer’s money), and the former wastewater treatment plant site (longterm property holding purchased with taxpayer’s money that has not been appraised). The first three properties are currently the three City-owned parking lots Downtown.
Additionally, the City is under contract to purchase the Green Street Cafe, the Carey Electric building, and the Carey 3-flat residential dwelling with taxpayer’s money. It is very safe to state all three properties, if purchased, will be included in the multi-million dollar giveaway of taxpayer purchased land to Shodeen Group.
Two additional properties, the Green Peapod Thai Restaurant and D’s Marine Service, will need to be acquired. According to Shodeen Group’s development proposal on the City’s website, the Shodeen Group is “in negotiations” to relocate the Green Peapod Thai Restaurant, in as much as the owners repeatedly asserting that they have no interest in being relocated can be considered “in negotiations.” The City is currently “in negotiations” to purchase D’s Marine Service, in as much as the owners refusing to sell and not returning the City’s calls to purchase can be considered “in negotiations.”
As recently as a few months ago, Mayor Wayne Jett and senior members of City staff discussed with City Council in closed session the possibility of using eminent domain or property condemnation to force the sale of both the Green Peapod Thai Restaurant and D’s Marine Service solely for the benefit of acquiring land for Shodeen Group.
Last Thursday was the first time City Council was informed that the City intended to give Shodeen Group a multi-million dollar giveaway of taxpayer purchased land. This multi-million dollar giveaway of taxpayer purchased land was not explicitly stated, but rather hidden in Shodeen Group’s development proposal with “Land Cost” falling under the “City Cost” column rather than the “Developer Cost” column. The City is explaining this multi-million dollar giveaway of taxpayer purchased land as an example of a “public/private partnership” where both parties contribute and both parties benefit. But with Shodeen Group benefitting by receiving $2 million of taxpayer’s money, a $55 million TIF, and a multi-million dollar giveaway of taxpayer purchased land and the City benefitting by relieving themselves of the burden of maintaining the City-owned parking lots off of Green Street and relieving themselves of the burden of maintaining the grass at the City-owned former wastewater treatment plant site, this calls into question who in the City is actually benefitting because it’s not the taxpayers who will have property purchased with their money given away to a corporate landlord for free, it’s not the Downtown businesses who will see a reduction in usable parking spaces with the addition of 799 apartment rental units, and it’s not the residents of the surrounding area who will see a massive increase in traffic on Waukegan Road (in Shodeen Group’s submitted development proposal, Waukegan Road is the sole access road to the former wastewater treatment plant site, which houses five of the eight overall proposed apartment rental buildings consisting of 496 of the proposed 799 apartment rental units and the 130-room hotel).
Mayor Wayne Jett and City staff have been working with Shodeen Group to develop the Downtown area for years and a giveaway of $2 million of taxpayer’s money, a $55 million TIF, and a multi-million dollar giveaway of taxpayer purchased land is the culmination. A special Committee of the Whole meeting would not be called without Mayor Wayne Jett’s tacit approval of this plan. Knowing that, it is correct to state the Shodeen Group’s development proposal and formal request of $2 million of taxpayer’s money, a $55 million TIF, and a multi-million dollar giveaway of taxpayer purchased land has his full support. Despite Mayor Wayne Jett orchestrating a significant private pressure campaign against Council, I anticipate Shodeen Group’s development proposal will be rejected by City Council on Monday, as a similar proposal for 1111 Green Street was rejected last month in a 4-3 straw poll and that proposal did not even include a multi-million dollar giveaway of taxpayer purchased land. Mayor Wayne Jett, as well as every alderperson who is still considering supporting this development proposal on Monday, should answer to residents how a giveaway of $2 million of taxpayer’s money, a $55 million TIF, and a multi-million dollar giveaway of taxpayer purchased land to a corporate landlord is not a gross misuse of taxpayer’s money and they should explicitly explain to residents how this could possibly benefit McHenry. Aside from relieving the City of the burden of maintaining the City-owned parking lots off of Green Street and relieving the City of the burden of maintaining the grass at the City-owned former wastewater treatment plant site, of course.
Chris Bassi is the 4th ward alderwoman on the McHenry City Council.