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HomeMy WebLinkAboutMinutes - 07/23/1981 - City CouncilSPECIAL MEETING THURSDAY, JULY 23, 1981 7:30 P.M. The Special Meeting of the City Council was called to order by Mayor special; Stanek on Thursday, July 23, 1981 at 7:30 P.M. for the purpose of discussing and Mtg. j taking action relative to the Wexford Group Development (McHenry Lakes Estates) and to take action on any and all business which might come before the Council. At roll call, the following aldermen were present: Pepping, Nolan, Harker, Datz, Wieser, Smith, Serritella, Meurer. Absent: None. Also in attendance were Attorney Narusis, Supt. of Public Works Weber, Clerk Gilpin, Harold Kively of Baxter and Woodman, Frank Gluth of Gluth Bros. Construction, John Smith, Attend- ance Reporter Lloyd Burger; Bud Towne, Howard Orleans, Janine Przyblyski, Robert Rose, all of the Wexford Group. Motion by Pepping, seconded by Datz, to authorize Chief Pasenelli to Wages offer a salary of $12,500.00 for a police dispatcher with 3z years experience. Employees, Voting Aye: Pepping, Nolan, Harker, Datz, Wieser, Smith, Serritella, Meurer. Voting Nay: None. Absent: None. Motion carried. Stanek explained that the meeting was called because McHenry Lakes Estates is an uncompleted subdivision that is close to completion with its McHenry Lakes sewer and water. The matter was discussed at length at a recent Executive Estates Session. Towne Orleans originally presented two letters of credit for installa- tion of subdivision improvements: $950,000.00 from Elgin Federal Savings and $140,000.00 from First National Bank of Woodstock. As of this date, there remains a balance in the Elgin Savings of $67,969.72, and $70,000.00 in the Woodstock Bank. According to a subdivision inspection by Baxter and Woodman, the balance needed to complete the subdivision improvements exceeded that amount. Gluth stated he had over $70,000.00 due to him for about a year for equipment and for work he had done on the water, storm sewer and sanitary sewer lines. Unless he received at least $63,000.00 toward his bill, he would not complete the work or release the lift pumps and other equipment he had in his shop for this project. John Smith, engineer for the subdivision, stated every other contractor had been paid in full for their completed work and Gluth was entitled to his also. Thursday, July 23, 1981 Page 2 Assuming partial payment was made to Gluth for $63,772.72 and he was paid $70,000.00 upon completion of the water/sewer lines, Pepping asked how we could make sure the sidewalks, streetlights and final overlayment of the streets would be done. Narusis explained that the City had filed a public notice in the Recorder's Office that these certain things had not been completed and any purchaser of any lot in that subdivision is thereby put on notice that no building permit will be issued until all those items are completed unless waived by the Council. It was the concensus of opinion that the sewer/water lines should be completed because it was vital to development of property along McCullom Lake Road and along Route 31. Wieser asked Orleans, spokesman for Wexford Group, to explain if he had the money or where he would get the money to complete the project. Orleans explained that it took 22 years to get revisions of the zoning for the property and about 14 million dollars had been spent on the project besides the invest- ment of the land. He cited economic conditions, interest rates and local govern- ments as contributing to the problem for the developers. He had no idea when the project would be completed but stated it would be done when economic conditions permit. In conjunction with the single family development, they have 102 Townhouse units which have been approved by the city and they anticipate starting construction of those very soon. They are going into a partnership venture with a Savings & Loan on this project. He also said they just concluded a deal with Wm. H. Tonyan & Sons of McHenry to take over marketing of all their industrial lots except 4. They had a meeting today and papers are being drawn for the subdivision's commercial property that will bring one and maybe two major retail giants onto the property. He concluded by saying they have presently achieved 87% of their goal and would definitely complete the remainder if the city would permit them to do so. Pepping felt the fact that the public notice on the property amounts to a cloud or hold on the property on the sale of those lots and provides us with ample protection given the circumstances. He felt the Council ought to be reasonable with the request that we release those funds to pay Mr. Gluth. Motion by Pepping, seconded by Nolan, that the City authorize the release of the funds for Mr. Gluth pursuant to a satisfactory agreement drawn Thursday, July 23, 1981 Page 3 by our attorney, with $63,772.72 to be released now and $70,000.00 to be released Authori- upon completion of Mr. Gluth's work. zation Voting Aye: Pepping, Nolan, Harker, Datz, Wieser, Smith, Serritella, Meurer. Voting Nay: None. Absent: None. Motion carried. Regarding installation of Oak Drive in the Industrial portion of McHenry Lakes Estates, Orleans stated they would install a temporary gravel road 16 feet wide to the creek by October 1981. The City is responsible for extending the road northward over the creek to meet the existing Oak Drive. Orleans requested McHenry a year's moratorium on the developer donations due the city and offered to pay Lakes 10% interest quarterly in cash. He did request that the sign on his property put Estates, at the dumping site of the Boone Creek dredging project be changed from "Quick Sand - Stay Out" to a more appropriate sign which would still carry the message but not turn away prospective lot purchasers. Motion by Serritella, seconded by Meurer, to accept Wexford Group's offer to install a temporary gravel road on Oak Drive by the middle of October 1981, and their offer to pay 10% interest quarterly on the developers donations with McHenry Lakes the City agreeing to have the warning sign changed at the dumping site. Estates Voting Aye: Pepping, Nolan, Harker, Datz, Wieser, Smith, Serritella, Meurer. Voting Nay: None. Absent: None. Motion carried. Of the retained personnel money due, it was the concensus of opinion that $975 which was one-half of the money paid for the railroad crossing should not be charged to the developers thus leaving a balance due of $11,732.70. Motion by Smith, seconded by Harker, to accept Wexford Group's offer to pay the Retained Personnel bill within 12 months with 10% interest to be paid quarterly, the current bill being $11,732.70. Voting Aye: Pepping, Nolan, Harker, Datz, Wieser, Smith, Serritella, Meurer. Voting Nay: None. Thursday, July 23, 1981 Page 4 Absent: None. Motion carried. Motion by Wieser, seconded by Smith, to adjourn. Voting Aye: Pepping, Nolan, Harker, Datz, Wieser, Smith, Serritella, Meurer. Voting Nay: None. Absent: None. Motion carried. Meeting adjourned at 8:41 P.M.