Skokie Trustees Vote To Sell Village-Owned Land For 20% Under Appraised Value

SKOKIE, IL — Trustees voted last week to approve a plan to sell a vacant village-owned property to a developer for $73,000 below its appraised value.

The Skokie Village Board previously approved a site plan from purchaser Nea Maya Real Estate and Development to build a four-story mixed-used development on a 0.22-acre site between the Swift Child Care facility and Al's Cycle Shop in the 8100 block of Lincoln Avenue.

The plans call for 18 residential units and about 2,270 feet of ground floor commercial space, which Nea Maya, currently located in Morton Grove, intends to use as its showroom.

The firm, which also developed a nearby 16-unit townhouse project, plans to also relocate its warehouse to Skokie at some point, according to village staff.

The village acquired the land in 2009 as part of the purchase of a larger property, some of which was used to build homes on Floral Avenue and some for the addition of an alley, Community Development Director Matt Brandmeyer and Economic Development Manager Len Becker said in a staff memo.

On Feb. 21, 2017, staff presented an offer to sell the property for $270,000 following a proposal from Park Ridge-based Neri Architects to build a four-story development there, according to the memo. There is no reference to the presentation in the minutes for that meeting.

"After two [plus] years of inactivity per the sales contract by Neri Architects, Village staff reached out to NeaMaya who had also expressed interest in the site back in 2017," Brandmeyer and Becker said. "A verbal price for the property was conveyed to NeaMaya at the same price offered and approved to Neri which was $270,000. Although no formal contracts were executed, NeaMaya continued to develop plans and work with staff over 2.5 years to bring a project to fruition at the site."

Four years later, the appraised value of the property is $365,000, according to village staff.

But staff recommended the sale of the property for $292,000 — 20 percent below the appraised value — and most trustees agreed.

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On July 22, village officials placed a required public notice in the Skokie Review that called for any alternative proposals for the site to be submitted by Aug. 2. None were received, according to staff.

Trustees voted 6-0 to grant preliminary approval to the sales contract at their Sept. 8 board meeting. Trustee Alison Pure Slovin was absent, while Trustee James Johnson abstained, saying he was grateful for the work of village staff and the developer but had trepidation about voting for any development projects without affordable housing mandates.

According to village staff, the apartments will be "very reasonably priced, given the market," ranging between $1,500 a month for a one-bedroom, $1,800 a month for a two-bedroom and $2,400 a month for the building's three-bedroom units.

In addition to the purchase cost, Nea Maya must contribute $60,000 to the village's downtown parking fund because the plans call for only 19 parking spaces in the building's lot — four short of the requirement in village code.

Staff said the developer had also shown them estimates of the "extraordinary costs" of connecting water service to the site and installing a required storm trap, which together will cost more than $150,000. According to the staff memo, Nea Maya hopes to complete the project some time next year.

No information about the project was immediately available from a Nea Maya representative. Final approval of the sales contract is scheduled for Wednesday.