Bigger Elmhurst Subsidy OK'd For Developer

ELMHURST, IL – A developer's request for a bigger subsidy for a 30-unit townhome project on Lake Street cleared the first hurdle Monday.

But the developer, John Pembroke, owner of Island Construction, did not get his entire $1.7 million request.

Last year, the city agreed to provide up to $950,000 for the project for water and stormwater infrastructure, among other things.

The project is set for 240 W. Lake St. It is the site of an old Ford auto body shop, which has gone unused for more than a dozen years.

In the spring, the city's Zoning and Planning Commission rejected the townhome plan, saying it was too dense. So Pembroke reduced the project to 30 units, from 36.

In doing so, Pembroke requested an increase in the city's contribution to $1.7 million because fewer units would mean less income.

The money would come from the neighborhood's tax increment financing district, or TIF, where growth in property tax money is designated for improvements in that area.

The expectation is that as Pembroke builds units, that will increase tax income, paying the city back the money.

The City Council's zoning committee took up the issue of the subsidy Monday.

Alderwoman Dannee Polomsky said she preferred the city's amount be $1.25 million to $1.4 million. Alderwoman Emily Bastedo agreed, while Alderman Mark Mulliner said his number was $1.25 million.

Pembroke's attorney, Michael Roth, said his client shouldn't take a "haircut" for the water and stormwater infrastructure portion of the city money.

"The idea here is to jumpstart this area, so you can expect more incremental dollars," Roth said. "If it doesn't happen, the city takes the haircut on that particular expense."

He said he considered the infrastructure an unrelated expense.

Assistant City Manager Mike Kopp said it was related.

"If you weren't doing this project, we probably wouldn't be doing that sanitary project," Kopp said.

At the same time, Kopp said the site in question was unique in Elmhurst in that it had no such infrastructure.

In the discussion, Polomsky said, "I always like to have a unanimous committee."

She asked Mulliner and Bastedo if they were fine with earmarking $1.3 million for the project. They agreed.

The project must still go before the Zoning and Planning Commission. The full council must vote on the zoning and subsidy.

Pembroke told the committee he was ready to start the project. It was all contingent on getting city approvals, he said.

"There is no holdup on my end," he said. "I've been raring to go for two years."