Why Libertyville is considering lowering price for sports complex properties
Village officials will consider reducing the proposed sale price of the driving range and mini-golf portions of the Libertyville Sports Complex by $380,000.
Under a change being recommended by the village staff, the price for those two properties would be reduced to $5.38 million from $5.76 million.
The suggested change would reflect increased costs identified by the purchaser during a review of the property at Route 45 and Peterson Road, according to information provided by the village. A wetland mitigation credit also will reduce the price, according to Heather Rowe, the village's economic development coordinator.
Lowering the price also acknowledges a shift in the way the site will be developed and the added risk of getting it ready as a speculative venture before specific users are identified, she said.
The price modification will allow the development to move forward more quickly, according to Rowe. The sale is set to close in the fourth quarter of 2020.
The village board will consider the price change at its regular meeting at 8 p.m. Tuesday at the village hall, 118 W. Cook Ave.
What are officially known as the Family Entertainment Center and Golf Learning Center never met expectations. The properties were designated as surplus and have been available for sale for several years.
In the fall of 2018, the village entered into an agreement with what now is known as 45Peterson LLC to purchase the properties for a build-to-suit industrial and commercial project at the busy corner.
The indoor sports complex portion of the facility - which features two full-sized indoor soccer fields, multiple indoor courts, a climbing wall, fitness area and other features - is not part of this sale and will continue to operate.
Selling the property would reduce a substantial outstanding debt, allow the redeveloped area to generate property and sales taxes, and create hundreds of jobs, according to the village.
Under the new arrangement, 45Peterson LLC will partner with Oak Brook-based Midwest Industrial Funds Inc. 45Peterson would develop the retail portion. Midwest, which owns a number of projects in the area and has a strong reputation, would do the site improvements and develop the industrial portion, according to Rowe.
"Having these two at this point join together should make it a very strong project," she said. "We know our vacancy rate for industrial is very low for the area and people are looking," she added.
The Libertyville Sports Complex opened in 2002. Aside from the main building, it long has been a drain on finances. For many years, the debt has been subsidized with general funds.
Proceeds from the sale would be used to reduce the roughly $13.8 million remaining debt incurred to buy the land and build the facilities. Finance Director Nick Mostardo has presented three scenarios of how to proceed, including one that would have the property debt free in eight years.
The reduced sale price of $5.38 million is greater than 80% of the appraised value of the property, according to the village.
Separate applications for zoning, engineering, building and other permits are pending.