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HomeMy WebLinkAboutEXECUTIVE SESSION - 02/28/1995 - LITIGATION/RELEASED RES NO 24-99 VV EXECUTIVE SESSION Elk Grove Village Date February 28, 1995 Time 10:10 P.M. TOPIC: Litigation X Personnel_ Land Acquisition_ Village Board Village Board MEMBERS PRESENT MEMBERS ABSENT STAFF PRESENT D. Gallitano None G. Parrin Village President Village Manager M. Tosto R. Rummel Village Trustee Asst.Vlg.Mgr. J. Petri S. Niehaus Village Trustee Admin. Asst. R. Chernick G. Knickerbocker Village Trustee Village Attorney N. Czarnik Village Trustee P. Rettberg Village Trustee C. Johnson 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 February 28, 1995 this Executive Session was called to consider a litigation matter. Number of pages attached: 1 Date(s) of review for release: July 19995 Date of approval for release: ,�� 7T 2/28/95 10:10 P.M. LITIGATION The Village Attorney brought the Village Board up to date on negotiations with the Grove Mall . The Village Attorney stated that Grove Mall had originally offered to sell the property for $6. 8 million dollars without the Burger King. As of 2/28195, the Village had offered $5.8 million for the same property, which led to a counter offer of $6.5 million by the Grove Mall . The attorney stated that he would not counter offer at $6. 0 million but he would settle at that amount as previously authorized by the Village Board. The Village Attorney stated that if the entire condemnation process would be needed to obtain the property, expert witness and legal fees would amount to approximately $200,000 and, therefore, saving this amount should be considered in the negotiation process. The Village Attorney stated that if a settlement were reached it is likely that closing on the property could take place within 45-90 days. The Village Attorney stated that there were currently no buyers lined up for the property and if the Village had to pay for the property they could obtain a General Obligation note and pay 4 . 85% interest for the amount of money expended on the property. The Village Attorney stated that an RFP for the development of the property was being written with the assistance of Concord Development Company. The RFP will be generic in terms of the cost of the property and the amount of T.I.F. money the Village is willing to contribute. This will be done to allow the Village Board to examine the various offers made on the property and to increase the levels of interest in the property, by potential developers. The Village Attorney stated that the Trkla report shows a maximum of $2 .3 million dollars of T.I.F. funding, including 25% of sales tax revenue from the property for the next 20 years. The Village Board expressed concern over the possibility of holding title to the property for an extended period of time and stated that they would rather have developers making offers on the property as soon as possible. Upon further discussion the consensus of the Village Board was as follows: -- expedite the preparation and distribution of the RFP in an effort to minimize the possibility of the Village owning the property for an extended amount of time; -- have the Village Attorney continue negotiations with the Grove Mall and not to settle at any amount higher than the $6. 0 million previously determined without approval of the Village Board; and The meeting adjourned at 10:45 p.m.