HomeMy WebLinkAboutEXECUTIVE SESSION - 09/27/1994 - LITIGATION/RELEASED RES NO 24-99 EXECUTIVE SESSION
Elk Grove Village
Date September 27, 1994
Time 8:00 P.M.
TOPIC: Litigation X Personnel! Land Acquisition_
Village Board Village Board
MEMBERS PRESENT MEMBERS ABSENT STAFF PRESENT
D. Gallitano, G. Parrin
Village President Village Manager
M. Tosto R. Rummel
Village Trustee Asst. Vlg. Mgr.
N. Czarnik R. Farrell
Village Trustee Admin. Asst.
R. Chernick G. Knickerbocker
Village Trustee Village Attorney
J. Petri
Village Trustee
C. Johnson
Village Trustee
P. Rettberg
Village Trustee
Pursuant to a duly made and approved motion and a majority vote at
a regularly scheduled meeting of the Village President and Board of
Trustees on September 27, 1994 this Executive Session was called to
consider a litigation matter.
Number of pages attached: 1
Date(s) of review for release: 12/1/994
Date of approval for release: 4i -
09/27/94
8 :00 p.m.
LITIGATION
The Village Attorney reviewed the following issues with
respect to a redevelopment agreement for the Grove Mali .
1 . General Concept of Redevelopment
Serfecz wants a redevelopment that will satisfy the
goals of the Village but also be economically
feasible. The Village Attorney noted that it will
take more time beyond September 30 to determine if the
Village and Serfecz are in agreement on the concept
and costs.
2 . Timeline
Serfecz proposes to extend the time frame for
construction of the development 3 month from March 1 ,
1995 to May 1 , 1995.
3 . Retraction/Apology
The Village Attorney recommended that a joint press
release highlighting the Village 's good faith position
in this matter would be enough of an apology from
Serfecz.
4 . Site Plan Approval
Serfecz does not want the Village to have the full
authority of site plan approval as other property
owners are not held to this standard.
5. Acquisition/Purchase Procedures
The Village Attorney recommended that should there be
a breech of contract or the redevelopment agreement
falls through, a price window for the acquisition of
the center should be set. It is recommended that
appraisers from both parties agree to a price between
4 . 9 million to 5. 6 million. Should the appraisers
fail to agree on a price within that window, an
independent arbitrator will reach a settlement .
6. Attorney 's Fees
The Village Attorney recommended that the $48,000
owed to Serfecz for Biesterfield Road condemnation be
used to acquire the Jewel lease ($40,000) and
reimburse the Village for attorney 's fees in this
matter ($8,500) .
7. Jewel Lease
The Village Attorney recommended that the Village
acquire the Jewel lease but not pay rent for the
period it is in the Village 's posession. Serfecz is
agreeable to this; however, he would like the Village
to hold off on acquiring the lease until negotiations
have ended.
8. Management of Center
Serfecz does not agree with the Village 's position
that the Village should be involved with the hiring of
a management firm for the shopping center. The
Village Attorney noted that the issue of establishing
a cash escrow or maintenance bond for repairs is
pending.
9 . Tenants
Serfecz does not agree that the Village should have
some authority over the selection of tenants for the
Center. This issue is pending.
After discussion the consensus of the Board was as
follows:
-- To allow negotiations on the agreement
continue for another 30 days;
-- To negotiate language that would allow the
Village to acquire the property upon any
default of the agreement .
f
-- Proceed with a joint press release as
proposed.
-- Require Serfecz to finance all of the
redevelopment improvements.
-- Include language as proposed that provides i
for land acquisition procedures.
-- Provide for reimbursement of attorney's
fees as proposed.
-- Do not pay rent to Serfecz for the amount
of time the Village holds the Jewel lease.
-- Negotiate establishing an escrow
account that would require the deposit of
$10,000 a year for the first five years of
the development . This will be used for
maintenance purposes if necessary.
The meeting adjourned at 8:15 p.m.