With the CRM plan gone, tomorrow is another day...

Imagine if Margaret Mitchell, author of “Gone With the Wind,” was a member of the Buffalo Grove Village Board.  After 2½ years of debate and discussions, many of which were contentious, regarding the now vanished “downtown project”, old Meg might have just rolled her eyes and uttered, “well, tomorrow is another day.”

                And she would be right.

                The instant downtown, proposed by Deerfield-based CRM Properties, is now a  memory. And while the acrimonious debate is seemingly lingering over concerns about the process and the fate of the Buffalo Grove Golf Course, the fact remains that the plan is gone and the village needs to face another day.

                The last several months have been a whirlwind of activity surrounding the CRM project and the end, much like Jay Cutler’s role as the Bears’ starting quarterback, came suddenly, with an unclear future lying ahead. 

                The village, however, is taking steps to enhance, develop and redevelop its retail business climate.  It’s going to be an arduous task for the village staff and the fathers and mother that make up the Village Board.

                There are a lot of questions.  In regard to the CRM project, I had hoped to get some answers from CRM President Chuck Malik, but scheduling conflicts and then a trip out of town led to his suggestion that I “check with (Village Manager) Dane Bragg for details.”  And before you know it, the petition was withdrawn.  Questions, however, remain.

                Up until a couple of weeks ago, questions centered on what Malk was going to do with his mega plan for a “downtown Buffalo Grove”.  His decision to withdraw his petition surprised residents, village staff and officials for a variety of reasons.

                For the cynical residents, it was a surprise because they assumed the project was a done deal.  For others, it was a surprise because there were so many unanswered questions that it was not clear which direction the plan was going.

                What may have been at the root of the withdrawal was that fact that Malk was eyeing in excess of $100 million from the village, a figure that was not met with open arms.

                “I was more surprised by Malk’s recent financial pro forma that was presented to the Board,” Village Board member Steve Trilling told me in an email response. “It was inconsistent with an earlier representation as to the amount of public funding, if any, that might be necessary.”

                The quick kill to the project may have been Malk’s request for financial support from the village.

                Board member Lester Ottenheimer said what surprised him was the change in financing because in what he called “preliminary discussions”, the village was led to believe that “financing would be different.”  Ottenheimer added that Malk’s decision could have been “because he couldn’t get what he wanted in financing elsewhere.”

Ottenheimer noted that the proposed cost to the village “were so high up it was out of control; He wanted us to finance $100 million. We can’t tie up the village with that kind of debt”.

                Was Trustee Jeff Berman surprised by the decision? “No, not in light of the financial figures CRM recently provided to the Village,” he told me in an email. He noted that “those figures were developed for the current version of the plan, which was created in response to the engineering study that was completed earlier this fall. Mr. Malk told staff that in order to make the project work from his perspective, he required a firm commitment for public financing for the “gap” shown on his spreadsheet of roughly $102 million.”

Berman noted that “just a few months ago, by contrast, he was still touting the possibility that the project could be completed without any TIF, or one of insignificant size.”  Berman said changes in circumstances the plan and numbers and Malk’s perspective led to Berman changing his own perspective.  “Based on the financial forecasts provided by CRM, it is clear to me that the project is financially infeasible. The nature and amount of TIF debt required to make the project “work” is far beyond any rational contemplation.”

                Board member Andrew Stein said he too was “surprised by the amount requested by Mr. Malk.” Stein noted in an email response that in previous discussions with the Board, Malk indicated that “he would try to structure it so that we would not need a TIF. When he did talk about a commitment from the Village, it was closer to the $20 million range.”

                Stein added that he was not was “not surprised that he (Malk) walked away when we told him that we were not interested in a $100 million contribution from the village.”

                The apparent move by Malk, along with the surprise and ensuing concern by the Board, should bring to light that this was not a “done deal” and that village staff and officials kept an eye open on the long-term impact on village finances.  Still, there were some apparent mixed reactions.

                “I don't know if I was so much surprised as I was disappointed,” Trustee Mike Terson told me in an email. “I was looking forward to going through the entire process and seeing how that evolved, as well as how the community would react as they learned more and more about the project.”

                Terson added that he is “not surprised by his decision because it became clear that the entire Board was not on the same page; and, that is a lot of time and money to invest in a process that you don't feel is likely to garnish the needed support to make happen.”

                Beverly Sussman said in an email that she was surprised by Malk’s decision because it happened “so abruptly”, especially given the fact that Malk “worked on this project for approximately 2-1/2 years and presenting two different concept designs plus his original design”.  Sussman noted that what added to her surprise was that fact that Malk “had a great deal vested in this downtown project.”

She added that he could have “tried to scale down the project or negotiate the amount or at least had some meetings with the Village to see if there was anything possible to work on. It's hard to believe that a developer of this size and magnitude would not have come back to the Village with some new proposal or concept.”

                Hard to believe or not, the proposal for a “downtown Buffalo Grove” is gone and when it comes to retail development or redevelopment in the village, tomorrow is another day.

                And frankly my dear, hopefully there will be developers who actually give a damn.

(This is the first in a series focusing on retail development and redevelopment in Buffalo Grove)

In between calls, first responders keep busy -- especially during the holidays

I once heard a comment, from someone who should know better, that fire fighters seemed to have it easy because “they only work, what, an hour a day”.

            Right.

            That’s like saying all police officers do is drive around all day or that all lifeguards do during the summer is sit outside and get tanned.

            Right.

            First responders, including those in the village, do a lot when they’re not responding to calls.  In addition to professional development and usual maintenance of skills and equipment, police officers and fire fighters spend a lot of time providing community education.

            An obvious busy time of the year is the holiday season.

            The Fire Department’s “Keep the Wreath Red” program, which reminds residents who celebrate Christmas to follow some of the basic safety tips.

• ·                     Needles on fresh trees should be green and hard to pull back from the branches, and the needles should not break if the tree has been freshly cut. The trunk should be sticky to the touch.
• ·                     Do not place your tree close to a heat source, including a fireplace or heat vent. The heat will dry out the tree, causing it to be more easily ignited by heat, flame or sparks.
• ·                     Never put tree branches or needles in a fireplace or wood-burning stove. When the tree becomes dry, discard it promptly.
• ·                     Inspect holiday lights each year for frayed wires, bare spots, gaps in the insulation, broken or cracked sockets, and excessive kinking or wear before putting them up. Use only lighting listed by an approved testing laboratory.
• ·                     Do not link more than three light strands, unless the directions indicate it is safe. Connect strings of lights to an extension cord before plugging the cord into the outlet
• ·                     All decorations should be nonflammable or flame-retardant and placed away from heat vents.
• ·                     Ensure that trees and other holiday decorations do not block an exit way. In the event of a fire, time is of the essence. A blocked entry/exit way puts you and your family at risk
• ·                     Wrapping paper in the fireplace can result in a very large fire, throwing off dangerous sparks and embers that may result in a chimney fire.
• ·                     If you do use lit candles, make sure they are in stable holders and place them where they cannot be easily knocked down. Never leave the house with candles burning.

            Now if you’re not among the residents who celebrate Christmas, don’t get your holiday spirit in a snit or put Rob Sherman in your speed dial.

            Some of these tips, especially those that relate to candles can apply to you.

            Remember, the fire and police departments serve all residents all of the time.

            And it takes a lot more than an hour a day.

It's official -- Downtown plan is down and out

Unknowingly, T.S. Eliot summed up the saga of CRM Properties’ dream to create a downtown for Buffalo Grove when he wrote ““This is the way the world ends; Not with a bang but a whimper.”

                The announcement today that the Deerfield-based developer is withdrawing is plan to develop the Buffalo Grove Golf Course into a downtown that encompassed retail, residential, dining and entertainment venues combined with a municipal campus should not come as a total surprise.

                The grandiose plan with all its seashells and balloons lacked one major thing for residents and apparently, village officials.  Answers.

                In the release, the village said “In discussions with staff, CRM Properties Group President Charles Malk cited higher costs than initially projected for the proposed plan, and an inability to resolve related financial hurdles. The most recent cost estimates forecasted a significant funding gap; Mr. Malk indicated that without a Village commitment for public financing, the project would not be financially feasible. The nature and magnitude of the newly requested financial contributions were neither expected nor contemplated by the Village.”

                So what’s it all mean?  Apparently Malk wanted the village to bankroll a major portion of the project and the village said, “no thanks.”

                If nothing else, this should dispel some of the accusations that the Board was full-steam ahead, storm the Bastille and let’s build one for the Gipper.

                It wasn’t.

                Nor is it a “victory” for any neighborhood or group.

                In a carefully worded statement, Village President Jeff Braiman pointed out that “The Village has reviewed the latest financial parameters, and while we appreciate Mr. Malk’s interest in Buffalo Grove and the time he and his team took to explore such a large investment in our community, the current concept does not make financial sense for Buffalo Grove. As I have said from the beginning, this would be a long and important process with a number of decision points along the way. I want to thank all of those who participated.”

                It’s the obligatory “thanks, but surely you can’t be serious” statement.  It’s like every new Cubs manager saying they’re here to win.

                While numbers have not been released, it apparently was a concern for Village Manager Dane Bragg, with whom I met Monday to discuss economic development in the village.  When discussing the now faded downtown, Bragg said “the preliminary financial gap would be difficult to overcome” and that he was not sure the project Malk perceived it was “feasible."  Again, no exact figures were discussed.

                However, in a follow-up exchange with Bragg, he indicated the cost front loaded by the village would be prohibitive.  Bragg noted that “His (Malk’s) conception of the project, for example, the office product is a major issue – Malk anticipates(d)  that this element alone could create a gap of some $40 million in the project pro forma – mainly because the market rents don’t appear to support the equity raise required for new office building construction.”

                Bragg noted that there were some amenities that may be “nice to have” versus “need to have,” or may not be required upfront., but by adding in the office gap, plus basic site prep for pad ready property and the replacement of Village facilities, he said the financing could have exceeded $75 million, with a great deal of that amount front-loaded by the Village.”

                In an email to me, Bragg noted that “while the Village is willing to consider options, that sort of front-loaded debt creates risk and opportunity cost that the Village is not likely to accept.”

                And that is not what Malk wanted to hear, so the project is a thing of the past.

                What is not a thing of the past, however, is the need for continued economic growth in the village.  This will entail more presentations by more developers, and it’s possible that they won’t please all of the people in all of the neighborhoods.

                But nothing is a done deal -- and if nothing else, like it or not, the system works.

What does the future hold for "the project"?

Last Monday’s Village Board meeting helped fire up the “way-back machine” thanks to the proposed business development by CRM Properties.

         You know the project -- The downtown.  To some people, the destruction of the golf course, which will, as the late George Carlin would say, “infect your mind, curve your spine and lose the war for the allies.”  There were more than seven words said about the project.

         In fact, there were a lot of comments made about the project, the developer, the golf course, village officials, and village staff.

         You just can’t beat fun at the old Village Board meeting.

         Emotions, needless to say, can run high.  Very high.

         The keyword here is emotions.  The project, as presented to the village, is massive and seemingly “uncharacteristic” for the village.  It is, however, just a proposal and while many people may want the village to unilaterally scrap it, this, like any proposal, needs scrutiny by the village before a final decision is rendered.

           So what have I taken away from not only Monday’s Board meeting, but previous ones where the proposal has been discussed? A few things.

• It seems as though every person who addressed the Board started “My name is (name) and I have lived in Buffalo Grove for (number) years.  I get it.  Longtime residents take stock and pride in the community, especially the way it was when they moved in.  The reality is that things change and the nature of Buffalo Grove has changed.  That does not mean, however, that a development the nature of what is being proposed fits the village.  Radical change is not always the best change, but at least a starting point for discussion.

• The Few Good Men syndrome.  Much of what is being said at meetings is based on the proverbial fear factor.  Like the exchange between Tom Cruise and Jack Nicholson in the move “A Few Good Men,” people want answers, they want the truth and sometimes they can’t handle the truth.

• The truth is the village can’t rent stores out.  Nor can it dictate what store opens where.  While it’s no secret that Town Center is little more than a collection of large “for lease” signs, the village cannot just bulldoze the property.  The village can market itself to prospective tenants, but it cannot, as noted, become a landlord.

• If the village wants to enhance business occupancies, it needs to look at every opportunity – no matter how absurd it may seem – that comes along.  Both the village staff and the Village Board owe it, I think, to the entire community to look at any possibilities that may enhance the business climate in Buffalo Grove.

• What we’re ending up here is a Buffalo Grove version of the aforementioned “A Few Good Men” during which Col. Nathan Jessep and Lt. Daniel Kaffee have a fiery exchange about wanting answers and being entitled to the truth.  While we don’t know where they lived, or for how long, what they want, even in a military court room, is what everyone does – answers and the truth – which is why the village people are going through the process. Many of the answers need to come from CRM.  I have been working to arrange a meeting with them to discuss their plans and the sources of information that CRM thinks makes the plan workable for Buffalo Grove.

• Location, location, location.  To no surprise, most of the opposition comes from residents whose homes have strong proximity to the proposed “downtown”.  Who can blame them? Whenever a proposal impacts nearby neighborhoods, those residents are the most vocal.  For example, during the 1980s, the most vocal people against the conversion of what was then Palwaukee Airport from a privately owned airport to a publicly owned airport were the nearby residents.  The misinformation about the project was rampant.  The difference is most of the people who complained purchased homes in or near a flight path of the busiest general aviation airport in the state unlike residents of Manchester Green and nearby areas who purchased their homes adjacent to open space.

• The Jim Croce syndrome.  The late singer, in his song “Recently” noted that “… the future is tomorrow 'cause the past is gone…” -- which is a factor to be strongly considered.  The village is not the same as it was five, 10, 15, 20, 30 or 40 years ago.  Conversely, the village will not be the same five, 10, 15, 20, 30 or 40 years from now – that’s the reality of it.  Change for the village will impact everyone in one way, shape or form. 

         The challenge will be to facilitate change while working within the parameters traditionally associated with the village.  The entire village.