Developer Asks Aldermen For Extension On Recycling Center Deal

EVANSTON, IL — Citing the impact of the coronavirus pandemic, the real estate developer under contract to buy the city-owned former recycling center at James Park for $1.1 million and lease it to a climbing gym asked aldermen for a 13-month extension to close the deal.

City officials have been trying to negotiate a new use for the long-vacant former recycling center at 2222 Oakton Street for more than five years. Built in 1991, the facility has not been used for recycling since 2010, although it has be used as wintertime storage for city vehicles.

In 2015, the city put out a request for development proposals for the 13,500-square-foot site, initially rejecting a proposal from rock climbing gym First Ascent in favor of a plan from Smylie Brothers Brewing. After securing another brewing site in Chicago, the brewery's owners asked to pull out of the lease before they were due to have to start paying rent on the Evanston property, and the contract was terminated in 2018.

In January 2019, the City Council approved a plan to negotiate a sales contract with Clark Street Real Estate to sell the property. It was finalized at the June 10, 2019, meeting by a 6-3 vote — with 1st Ward Ald. Judy Fiske, 8th Ward Ald. Ann Rainey and 5th Ward Ald. Robin Rue Simmons voting against the deal.

Since then, developer Andy Stein has requested two contract extensions, the most recent in April, according to a memo to aldermen from Economic Development Manager Paul Zalmezak.

"Before the COVID-19 pandemic began impacting business seven months ago," Zalmezak said, "Andy Stein estimates expenditures of approximately $100,000 to cover the city's fees, costs associated with submitting plans, and the due diligence expenses such as attorney fees, studies, plans, and other property research."

The latest request asks for the "approval period" — after which the buyer can pull out of the deal if the city has not provided the necessarily municipal approvals — to be extended until May 31, 2021.

"If this extension is approved, First Ascent will evaluate its operations through Winter 2021 and report back to City Council in early 2021," Zalmezak said.

Related:
Rock Climbing Recommended For Former Recycling Center
Aldermen Let Brewery Out Of $1.5 Million Lease For $60,000
City Council Want Compensation From Smylie Brothers Brewing
Brewery Wants Out Of Recycling Center Lease Before Rent Comes Due
Smylie Bros. Looks To Expand To Old Recycling Center

Since the contract was approved, Stein has left Clark Street Real Estate, which he said is no longer working on new projects, and has formed his own firm, Northbrook-based S/Point Ventures, which he described as "extremely well capitalized" in a letter to Zalmezak.

Stein said the development team had been working with the city and residents of the neighborhood ahead of submitting an application for a special use permit in early March.

"Unfortunately, the COVID-19 pandemic has impacted all of us in many ways and no one could foresee when we submitted our application the impacts that it would have both globally and on First Ascent's operations," Stein said.

"First Ascent remains committed to opening at 2222 Oakton. It is the right building at the right location to serve this great community," he said. "But they need to take the appropriate time to see how business progresses at their existing locations while co-existing with COVID-19 during the winter months, traditionally First Ascent's busiest time."

If the approval period is extended, Stein said the development team would look to get all the needed permits by next Halloween and close the deal by the end of November 2021. The City Council is due to consider Stein's request at Monday's meeting.