Developer Subsidy Up In Air In Western Springs

WESTERN SPRINGS, IL – A developer who wants a subsidy from Western Springs for a condo project is still waiting for an answer.

Felix Lampariello of Hinsdale-based KLM Development started building a four-story condo building at 514 Hillgrove Ave. last fall.

In late July, the village's Economic Development Commission decided that $971,000 of the project's costs are eligible for a subsidy.

A building that is set to include commercial space and 10 condos is under construction at 514 Hillgrove Ave. in Western Springs. The developer is seeking a village subsidy. (David Giuliani/Patch)

The money would come from a tax increment financing district, or TIF.

The issue is supposed to next go to the Village Board's Finance Committee

The committee has met twice since the Economic Development Commission's meeting two months ago, but has not addressed the subsidy request.

"That (committee) meeting has not yet been scheduled, but is expected in the next few weeks," village spokeswoman Selmin Cicek said in an emailed response to a Patch inquiry.

Once the committee addresses the request, it will then go to the Village Board, where the review takes place over two meetings, Cicek said.

On Thursday, a man answering Lampariello's cellphone said, "You've got the wrong number." When Patch called a moment later, the call went to voicemail, which indicated the phone was Lampariello's.

In July, Lampariello acknowledged to Patch the village had not agreed yet to give the project any money.

But he hung up after telling Patch, "I have a meeting with the village. You'll have to contact them."

Lampariello had originally sought $1.5 million for the more than $8 million project.

Part of the money was for the land purchase. But under state law, that portion was ineligible for the subsidy because the purchase was a year before the 2019 creation of the tax district.

Under the plan, KLM would be reimbursed for the eligible expenses from the higher tax collections that are expected as a result of the property's increased value.

Lampariello has told the village he needed the money to get the necessary financing from Lakeside Bank.

KLM submitted its original application for village assistance in 2021. It hopes to complete the project by the end of 2023.

The idea behind a tax increment financing district is that the money spurs development, which will bring more taxes to local government bodies in the long run.

In a November email to local officials, Lampariello said he had been repeatedly assured that he would get TIF help from the village.