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HomeMy WebLinkAboutPLAN COMMISSION - 07/02/2003 - TANTILLO HOMES/PERRIE DRIVE CONDO Elk Grove Village Plan Commission Minutes July 2,2003 Council Chambers 901 Wellington Avenue Present: Chairman Glass Acting Secretary Paliganof Commissioner Ayers /j �/� /fr Al Commissioner Hauser4 Commissioner Henr ci (8:15 pm) Commissioner Meyers 9yJ Commissioner Thompson OFFj Commissioner Sokolowski Absent: Commissioner Geinosky Staff: R. Rummel, Assistant Village Manager A. Boffice,Director of Engineering&Community Development Petitioners: Tony Tantillo, Sr., President,Tantillo Homes John O'Hara, Director of Development,Tantillo Homes Matt Halek, Architect The meeting was called to order at 8:06 pm. Approval of Minutes of June 18, 2003 Commissioner Sokolowski motioned to approve the minutes of June 18, 2003 as written, and Commissioner Ayers seconded that motion. Upon voting(Glass,Ayers,Hauser, Henrici, Meyers,Paliganoff, Sokolowski, Thompson,AYES, Geinosky absent)the motion carried. Tantillo Homes—Special Use—Perrie Drive Condominium Proposal Chairman Glass opened the Public Hearing concerning the petition of Tantillo Homes requesting a Special Use Permit for the construction of condominium buildings on approximately four acres located at the intersection of Perrie and Grove in Elk Grove Village. The petitioner,Tantillo Homes, labeled the project: "New Regency Square", Petitioners: John O'Hara Tantillo Homes Matt Halek, Architect Tony Tantillo Acting Secretary Paliganoff swore-in John O'Hara, Matt Halek,and Tony Tantillo as witnesses for the petitioner. A court reporter is present:to take verbatim transcripts of the proceedings. John O'Hara—Presented testimony on behalf of the Petitioner,Tantillo Homes,by indicating the following: Tantillo Homes will be a "pure"developer by hiring a construction firm to serve as general contractor, and a private sales firm and management agency to address those aspects of the development. A Limited Liability Corporation(LLC)that has yet to be formed will own the project. It is envisioned that Tantillo will be a majority holder of the LLC. The project is proposed for the intersection of Grove and Perrie Drive on a 4 acre site across from a park. The existing Regency Square is south and west of site. To the east is low rise industrial. The existing Regency Square Apartments are being converted to condominiums. Tantillo's project will buffer single-family homes from existing industrial buildings. In 1984,the Village approved a 104 unit, 4 building, 156 parking space rental property project on the subject lot. The petitioner is requesting 104 units, owner occupied condominiums, and added parking for minimum required by ordinance. The project is intended to be 6 stories with the first floor serving as at grade enclosed parking with the top 5 floors serving as residential units. There are proposed 3 buildings, 35 units per building and 1 unit serving as a community room. There are 7 units per floor with 5 floors of residential. The differences between 1984 and the proposed development is as follows: Proposed 1984 Site Area 173,250 173,250 Building Square Footage 1.57,380 89,000 Total Dwelling Units 104 104 Building Coverage Area 45,240 29,700 Parking Coverage 49,620 51,000 Green Space Area 78,390 92,550 Green Space Ratio 45% 53% Parking 208 156 Parking per Unit 2.0 1.50 Floor Area Ratio 0.91 0.51 Density per Acre 26.15 26.15 Building design and architecture is designed with a tall and slender appearance and the following attributes: • Low density massing. • Better views, • Increased air and light transfer through the project, • No depressed parking ramps, • All masonry with brick exterior with masonry block contract and precast concrete floors • Low sound window glazing, • Heated indoor parking, • Full security. Demographics: marketing to older purchaser. O'Hara showed a picture from what he referred to as the 3rd floor view overlooking the industrial park. He stated that the view was not objectionable. Each floor has 7 units. Four of those units have a side balcony,and the remaining units have a front balcony. Units are mostly 1 and 2 bedrooms. Some units have dens. Some 1 bedroom dens can become an optional bedroom. There will be no 3 bedroom units. Building height was lowered to under 60 feet as required by code. There is a parapet wall that exceeds the 60 foot height that can be lowered to meet code. Interior ceilings are 8 foot 4 inches high. Parking spaces are 9 x 18 as required by code. There are now 2 spaces per unit as required. Exclusive indoor parking is for residents only and cannot be utilized for storage. Separate storage is provided for residents. Non-exclusive parking is available to others including guests: O'Hara discussed parking at other units in Elk Grove. • Talbot's Mill parking Townhomes: 2.68 spaces per unit. Not comparable to condos. • Huntington Chase Townhomes: 3.23 spaces per unit. Not comparable to condos. Residents are using guest parking as exclusive parking. • Concord Homes Arbor Club Townhomes: 4 spaces per unit with guest parking on the street. Not comparable to condos. • Park Chardonnay Condominiums has about 2 spaces per unit and is a comparable condo. There is always available parking. The same holds true for Park Orleans Condominiums which is comparable to the Tantillo project. Outside Elk Grove, other municipalities require less than 2 spaces per unit on a comparable basis. Petitioner testified that they will take all actions to comply with Village codes. The petitioner briefly discussed the landscaping plan. In addition,the petitioner indicated that the project would have no impact on traffic. At this point,the petitioner concluded the presentation and asked if the Plan Commission had any questions. Commissioner Hauser asked for the following: • Detention: Is the detention wet or dry? O'Hare indicated it will be a dry detention pond. • Open lot: 30,000 square foot open space is not part of development but part of the ownership of the Regency property'? Tantillo responded that he believes the Elk Grove Park District owns the property. • Homeowners Association: Developer will control the association until what point? O'Hara and Tantillo indicated that the developer generally controls the association until the project is 80%to 100%complete. Association will not control parking. No lease or off site parking. • Guarantee of workmanship: Tantillo will offer a guarantee and that guarantee will be as good as the general contractor who is hired to do the construction. Tantillo will handle complaint intake and management with the general contractor and the construction manager although they are open to other arrangements. John Meyers: • Did Tantillo propose a similar project for Wheeling? O'Hara responded: Yes, but the project did not go through. Wheeling is attempting to condemn the property. • Was there a long time frame for completion in Wheeling? O'Hara responded: Yes—a total of three i l-story buildings were proposed,plus an option for a fourth 11-story building. The construction time frame was estimated at 6 years. • What is the construction time for Elk Grove project? O'Hara responded: Buildings are 10 to 12 month construction or three years total sale and closure. Public utilities done initially. • Was O'Hara on Tantillo staff for the Wheeling project? O'Hara responded: Yes. Chuck Henrici: • Time frame for construction is lengthy. O'Hara responded that is the general time for a project of this size. Ted Thompson: • How many other mid-rise projects has Tantillo done? O'Hara responded: Tantillo hasn't really built any as they hire general contractors to do so. • What is Tantillo's relationship with past tenants? O'Hara responded: feels that it is positive with all but one person. • Daily Herald reports less than positive articles about Tantillo projects in Bloomingdale, Itasca, and other areas. O'Hara—there was a problem with water leaking into units due to homeowners chopping ice that had dammed, causing the problem in Itasca. There are no open issues in Itasca. Homeowners caused the problem. He could not understand why anyone would be unhappy. • Were repairs done in a timely manner? O'Hara responded: Problems were addressed in a timely manner once he was involved. The problems could have been addressed faster before he got involved. • Thompson has spoken to people who live in Tantillo developments and are very unhappy. Why should Elk Grove Village allow you to build in our community? O'Hara—we are not building it. A general contractor will do so. There are always customer service issues. Tantillo will consider placing the customer service directly with general contractor. Don Sokolowski • What is utility schedule? O'Hara responded: all underground utilities will be done up front. • When do you begin selling unit 2? O'Hara responded: Once 25%of the units are sold in the first unit but not closed,then they will move on to the second unit. • What is an accurate time frame that people will have to live under construction? O'Hara responded: 3 years. It's controlled by the banking industry. • Will you have a specific management group? O'Hara responded: Construction will be outsourced, as will sales. Ownership by an LLC of investors is being put together. • What if homeowner has problems? O'Hara responded: Tantillo will have a process in place to address those problems. • What about Bloomingdale and Itasca? O'Hara responded: he doesn't know about Itasca. Tantillo is considering replacement of their staff in Bloomingdale. • There are a number of complaints from residents who cannot reach Tantillo homes. Why? O'Hare doesn't know how to respond. There are 5 or 6 representatives on site each day. Paul Ayers—no comment at this time. Dave Palignof: • Will there be different contractors for each building? O'Hara responded: No,only 1 contractor. • Why not have a security gate leading into the entire development? O'Hara will consider a global security gate if the Plan Commission feels such a feature is necessary. • What are the estimated sales prices of the condo units? O'Hara responded: $225,000 per unit with parking space. Glass: deferred any comments or questions until after audience comments. Chairman Glass briefly recessed the hearing at 8:55 pm. and reconvened at 9:07 pm. Rich Runhke of Itasca Development. Runhke reported that it is a nice development that has appreciated in value over past 5 years. However, he reported that the wetlands are in violation. DuPage County is pursuing this. Bond funds are still in possession of Itasca. Need retaining walls around buildings they are collapsing due to shoddy workmanship. Last fall, Village used bond funds to replace leaky ceilings in stacked units. Units are noisy between units. Runhke's basement took water for 2 years due to clogged discharge pipe. One home still has roof leaks with drywall damage. One unit still has leakage in basement window well. Street lights had undersized ballasts so they go on and off. There are liens on many homes due to failure to pay contractors. Of the coach lights (540 total) installed by Tantillo Homes, 180 have peeling paint. Homeowners are facing$27,000 to replace those lights. 3 unit residents had rough in basement with an ejection pump but Tantillo installed a regular sump pump. Tantillo used his unit as a model home. Glass—when did you move in? Runbke replied: 5 or 6 years ago. Runhke indicated that he still has problems with leakage and will cost$5,000 to repair with drain tile. Meyers—leaking into the roofs was that due to chopping ice dams? Runhke replied: No,roofs are too steep to do such a thing. In fact,Tantillo or someone was paying someone to remove snow from roofs. He has never seen a resident remove ice dams. Mary Kruesler—359 Bay Drive, Park Place, Itasca. Lived there 2 years. Problems with Tantillo —never completed to satisfaction. Her unit was not landscaped properly. Only has gravel and construction till. Grass will not grow due to lack of topsoil. Issue addressed with Tantillo but they are not responsive. O'Hara stated her unit is at 100%completion, but she never had a walk through. O'Hare clarified his comments: Village of Itasca returned$150,000 bond to developer when residents were satisfied. O'Hara objects to the comments from the audience. Glass noted that the developer controls the project including general contractor and subcontractors. Tantillo Homes controls construction, sales, and customer service, and Tantillo Homes is the petitioner. Chairman Glass—In Itasca,did you outsource construction? O'Hara stated no, the contractors were prime to the owner. A. Boffice indicated there is no real difference. Commissioner Meyers—who would I call if I purchased and had a problem? O'Hara responded —you call a person designated by a general contractor. O'Hara indicated he just wants the project approved. He will accept the stipulation that Tantillo will not construction the buildings. A.Boffice asked who the owner will purchase the unit from? O'Hara responded that if Pepper builds the building,they purchase from Pepper. Chairman Glass stated the petitioner is Tantillo Homes, Inc. The petitioner represented that they were building the units. Now, the petitioner is not building,and he asked for clarification. O'Hara—Tantillo functions as a pure developer with ownership under an LLC. Chairman Glass stated that O'Hara testified that Tantillo is handling customer complaints. Glass—how many mid or high rise homes has Tantillo Homes developed in the past? O'Hara—none constructed by Tantillo. Perhaps six were developed by Tantillo as a pure developer. Chairman Glass asked for addresses. Linder/Lawrence Chicago— 100 units, 3 stories Linder& another street in Chicago. Glass: Will you submit a list to us later? Tantillo responded yes. Chairman Glass questioned who will control the ownership entity? O'Hara responded that will be a function of an equity contribution. Do we know who will build the building? No—we do not know who the LLC will be. Tantillo is likely to be controlling interest. Mary Kruesler continued: She wrote a list of items on closing, but those items are not finished. Cabinet doors warped, no caulk around sink,always confusion about who to contact, lighting fixture doesn't work. Told to call lighting sub,but sub would not repair the light as they were not being paid. She also has new items. Mary Kruesler has a leak erupted into garage and shingles are bowing up on home. They do not know who to contact. The Tantillo organization was difficult to contact. Usually answering machine. Her unit has a lien on it by a subcontractor of Tantillo. She found out when she attempted to refinance. Mary Kruesler liked the quality of material, but process was not smooth. Many different project managers. Niels Liltorp—204 Westminister Drive in Bloomingdale. Oct 2002 resident. Liltorp testified that he has a 3 page punch list still not complete. Cannot contact anyone. The only person he can contact does nothing. Tony Tantillo Jr.never responds to messages and never calls back. Tantillo Jr, is on site. He promises to call,but never does. Liltorp is owed funds from upgrades he paid for that was not provided. Liltorp showed the Plan Commission a letter from Tantillo Homes indicating the upgrade was not installed, and he never received credit of$432. Tantillo—did customer ever get a bad deal" Or,has every unit appreciated in value providing a return on the investment? Glass—every piece of real estate developed has appreciated in this area. Tantillo—we only address actual problems not other problems. Glass—the issue is not the fact that the property has appreciated in value. Land is a limited commodity. It's a given fact. Glass indicated that Liltorp had a contract and items were not provided under that contract. Tantillo—he may not have paid for or been entitled to that upgrade. Glass—Liltorp submitted a fax from Tantillo with a number of items. Indicated homeowner paid for upgrade and wants compensation for it not being installed. Tantillo says he denied payment. Chairman Glass noted the upgrade is listed on the sales contract. Glass—Tantillo's son is the field contractor on this job. It reflects negatively upon Tantillo Homes. O'Hara is the development coordinator. Tantillo is the President. The corporation is accountable. They are not doing the job in the past,why would they do the job in the future in Elk Grove. Andrea Blecha, 255 Westminster, in Bloomingdale. Moved into her unit on June 21, 2001. It took 13.5 months to close. Blecha testified as follows: the Homeowners Association will decide upon dead landscaping on her property. She had a lien placed on her town home from Orange Crush street contractor which was not paid by Tantillo. Lien has been removed now,but was on after closing. Bloomingdale is using bond funds to repair what was not done by Tantillo. Property taxes were prorated. Tantillo did not pay his proportionate share from the proration. Does Tantillo control the homeowners association? As of last Monday,Tantillo does not. Tantillo hired Foster to manage these items. The developer controls the association until development is completed. Tantillo suggested that Elk Grove contact other communities. Shauna Davidson, 253 Westminster Drive, of Bloomingdale. Had I`town home from Kimball Hill. It was a delightful experience. Davidson testified that Tantillo promised 3 months for delivery, it took i l months. There was a lack of coordination from the sales department. Tantillo is trying to sell the development, as they are not building it. Tantillo promised fully sodded lots. They got atrocious, dead grass seed. Homeowner could not solve problems so they gave up trying. Ed Albers, 344 Bay Drive, Itasca. Has a grading problem for 3 years. He stated he dealt with several Tantillo supervisors who never resolved problems. They have only taken care of mildew, but it's a grading problem as units are 1 foot lower. Sump pumps continue to run even in dry times. Patricia Albers,same address reported that they had a lien on their property as noted by Patricia Albers. Albers indicated she had a letter from Chicago Title and Trust indicating a lien on her property from the sewer installers. Mr. Albers reported that DuPage County requested Village of Itasca use Tantillo bond proceeds to complete the project. Tony Tantillo responds: All legitimate issues have been taken care of. Maybe not as quickly as they should have been done. Buyers frequently add change orders, which create delays. Every item was taken care of and that shows the character of the company. The company spent$1 million to address these issues. The Itasca engineering departments approved the grading. Common association property controls landscape. The Association needs to address common concerns. Sometimes subcontractors do not get paid as quickly as they would like because they did not do the job correctly. Then,contractors place liens on the homes. Must look to the legitimacy of these items. Take sod versus grass. Village inspectors may request grass rather than sod. Tony Tantillo suggested that Elk Grove check Woodridge,Fox Ridge Creek, and Westmont Citadel on the Pond. Tantillo suggested two questions: Has Tantillo been treated fairly? Will Elk Grove Village be better off with this development? Tantillo Homes is converting Regency from rental to owner occupied. That is an upgrade to the Village. Tantillo Homes did not walk away from any legitimate claim in any other community. Tantillo Homes will hire a builder who is AAA rated. All warranty issues will be taken care of by a high quality firm. Chairman Glass asked if any units recently constructed were found to be in violation of building codes? T.Tantillo responded No. Chairman Glass questioned if any of these towns used construction bonds to complete the project? Tantillo responded Yes, the Village of Woodridge. Woodridge wanted silt removed from a pond and to have the pond reconfigured. Tony Tantillo claims that the Village changed the plans. Chairman Glass noted that Tantillo Homes testified they spent over$1 million on warranty work in Itasca. It raises many questions about the quality of work. Chairman Glass stated he never had to have the Village involved in resolving problems with two homes he had constructed in Elk Grove. Chairman Glass noted he has chaired these meetings for over 20 years and never had people testify against a developer like what has taken place today. He commented Elk Grove will need to hire an entire staff just to watch this development. Chairman Glass stated both representatives from Tantillo have provided contradictory evidence for the record. How can the Village trust what you are saying. Chairman Glass noted Tantillo does build architecturally attractive buildings,but at what price will it cost the community? He heard testimony that fences fall down in 4 or 5 years. Chairman Glass stated he is very frustrated. Roof leaks are a major,material problem, especially with mold concerns. Tantillo designed these projects. Why did Tantillo Homes build a product with a leak in the roof? Commissioner Meyers asked if he were to go to Woodridge,Bloomingdale, and Itasca,would they welcome Tantillo Homes back as a developer? Tony Tantillo says it depends upon how fair these people are that you ask. Commissioner Ayers stated the Village of Bloomingdale rejected a development of a second phase project. O'Hara responded the Bloomingdale Plan Commission approved the development on a 6 to 1 vote. But, their Park District decided to purchase the property. O'Hara stated that Tantillo Homes will provide an agreed contractor list for the Village and Tantillo to select for constructing the development. O'Hara believes they can build under the 1984 Special Use permit which is an entitlement. Tantillo Homes will not be the builder nor the developer. Tantillo Homes needs to close on the property by July 17,2003. Chairman Glass commented on the petition from Tantillo Homes. Tantillo Homes is now only seeking the entitlements for this development. That is different from the original presentation at the informal meeting before the Plan Commission two weeks ago. The consensus of the Plan Commission is to recess the hearing until August 6, 2003 at 8:00 p.m. at the same location. Item 4: Adjournment There being no further questions or comments,Chairman Glass asked for a motion to adjourn. Commissioner Meyers moved to adjourn and Commissioner Hauser seconded the motion. Upon voting(Glass, Ayers,Hauser,Henrici,Meyers,Paliganoff, Sokolowski,Thompson, AYES, Geinosky absent)the motion carried. The meeting was adjourned at 10:54 p.m. Respectfully submitted, Raymond R. Rummel Assistant Village Manager C: Chairman and Members of the Plan Commission,Mayor and Board of Trustees,Village Clerk, Village Manager, Assistant Village Manager, Assistant to the Village Manager, Administrative Intern, Director of Engineering/Community Development, Director of Public Works,Fire Chief,Deputy Fire Chief(2), Assistant Fire Chief,Village Attorney.