Two pending real estate transactions involving Village of Northbrook properties either received a full blessing or full disdain on April 9.
The two properties owned by the Village are the Civic Building, 2002 Walters Avenue, and 1657 Shermer Road known as the former Grainger property.
At the April 9 Northbrook Board of Trustees building, trustees unanimously voted to sell the Civic Building for $1 “as is” via ordinance to the Northbrook Chamber of Commerce & Industry, instead of choosing the Northbrook Civic Foundation, which also made a pitch to buy for $1.
Trustee Robert P. Israel, as presiding officer in the absence of Northbrook Village President Kathryn L. Ciesla, told the audience, “We’ve come to successful negotiations with the Chamber of Commerce and with the Civic in order to make sure that both groups and the building are viable.”
The village launched ownership discussions in 2022 with Civic and the Chamber.
A Sept. 12, 2023 village memo assured, “an open process of seeking a purchaser,” via a competitive RFP (Request for Proposal).
An April 9, 2024 village memo stated, “It was concluded that the Chamber demonstrated … it could own, operate and rehab the building to ensure its continued use for the community’s benefit.”
“We are disappointed but accept the village decision and we are excited to be moving forward with planning and hosting the 100th Northbrook Days Festival (July 31 to August 4),” said Steve Amberg of Northbrook, vice president of Civic’s board of directors. “We will continue to use the building as we have had through Northbrook Days,” Amberg said.
Kathleen Quinn, the chamber’s executive director, said, “We appreciate the village’s thorough vetting and thoughtful consideration of all the proposals submitted. We look forward to maintaining and expanding the chamber’s programs to benefit the local business community.”
The April 9 memo indicated the Civic Foundation had a role in the Civic Building’s 1920s construction. The property has been a Village Hall, fire station and library.
In 1983, the village leased the property to Civic with contract authority to sublease. The Chamber became a tenant.
By omnibus vote, trustees on April 9 unanimously dissolved the village’s lease with Civic via resolution.
Mutual termination legalese states, “After August 4, 2024, Civic will vacate and surrender the premises, remove any and all personal belongings from the premises, and turn over all keys to the premises, unless Civic and purchaser enter into a new lease agreement.”
The Chamber has no legal obligation to rent to Civic and, “the Village will not participate in the negotiation of any such lease agreement.”
Quinn and Amberg would not confirm if Civic would be a Civic Building tenant past Northbrook Days 2024. The village is requiring the name must remain as the “Civic Building.”
Civic and the Chamber presented their cases in a late December closed session with the Village Board. An Aug. 22, 2023 memo indicated the village in 2020 estimated Civic Building upgrades at $300,000. The closing is set for May.
At the same Tuesday board meeting, a closing date was moved through Dec. 31 for Lennar/Quarterra, the contract purchaser of the former Grainger property. The 10.3 site acres are zoned for residential and commercial.
“Quarterra advises that they remain committed to the project and, while this extension is sought in response to current market conditions, Quarterra is optimistic and is progressing actively with the project,” wrote Northbrook Village Manager Cara Pavlicek in an April 9 memo to trustees.
QMC Northbrook Holdings, LLC received the third extension and paid a $10 fee. Northbrook Village Trustee Johannah K. Hebl abstained from voting on the ordinance.
The original price was $10.5 million to fund 335 luxury apartments. In May 2022, the proposal was scaled to 318 luxury apartments. The price changed to $9.25 million. If the deal closes by Dec. 31, village interest on the taxable Go Bond moves the total to $9.39 million.
In January 2018, the village bought the land from Grainger for approximately $8 million. Critics charge the Village bungled an attempt to unsuccessfully relocate Northbrook’s Metra station south to the former Grainger site without properly researching railroad approvals before buying the site.
During the April 9 meeting, David Petrich of Northbrook was asked to pipe down when Petrich made comments from the audience out of agenda order. Petrich also spoke at the podium, calling the contract, “a disaster,” and accusing the village of not publicizing the reduced sales price to residents.
“This was a wrong, wrong deal,” Petrich said. “When’s enough enough? When are you going to say we’re losing money every single day and we have to stop the bleeding?”
Speaker Scott Bush of Northbrook said of the developer, “They don’t have their funding.
“We’re not vetting our developers well,” Bush said.
Hebl said that night, “This is frustrating,” seated at the same dais where Hebl showed exhaustion when the Jan. 24, 2023 board meeting went past midnight with neighbors angry about 1657 Shermer Road packing the boardroom.
“I’ve got smoke coming out of my ears,” Hebl said on April 9. “I want it done yesterday.”
The third amendment has a July 31 deadline for Lennar/Quarterra to submit construction renderings. If missed, the village can terminate the deal.
“They’re going to have to put in some serious cash…and if we don’t see it, I’m moving on,” Hebl said.
Israel said, “We’re not happy to push this back.”
As of April 10, the 186,000-square-foot Grainger building remains shuttered with window-posted no trespassing notices. Several cars were parked in front.
At the Civic Building, a storage trailer with faded Civic lettering was parked on the north exterior of the property on April 6.
While the village uses an RFP to sell its property, the village retained Cushman & Wakefield to market 1657 Shermer Road. See the brochure at https://images1.loopnet.com/d2/PUzUq3jIvpnnvur05VFvVsq7M7v2-szgiLAOeH_GQK0/1657%20Shermer%20RdNorthbrookMarketingBrochure.pdf.
The village did not hire a commercial real estate firm to broker the Civic Building for a sale price of at least tear-down land value. It is unclear if the Chamber and Civic could have been co-owners.
“The common practice is to do the RFP,” Nicholas Glenn, village communications manager wrote to Pioneer Press, indicating, “It is hard to compare the two properties,” with the commercial impact being, “much different.”
Karie Angell Luc is a freelancer for Pioneer Press.
