Des Plaines Aldermen approved a bid from TPS Des Plaines, LLC to develop land on the south side of Des Plaines, 6-2, at the meeting on Monday.
A hotel, parking lot and restaurant will be built on the northeast corner of Mannheim and Higgins Roads south of the I-90 Tollway. The land area is about 4.9 acres.
Former Des Plaines aldermen approved the city’s purchase of the land between 2003 and 2005 for $10.5 million, said Dorothy Wisniewski, director of finance. In this agreement, TPS Des Plaines, LLC purchased the land for $1.1 million.
Fifth ward Alderman Jim Brookman and sixth ward Alderman Mark Walsten voted against the sale of the land, saying that this was not an ideal agreement.
“I really believe there is probably a better deal out there than what we are looking at here,” Walsten said, adding that it might be better to wait for the economy to pick up.
Brookman said he felt the Request for Proposal process wasn’t competitive enough and that he wanted to counter-offer with the developer. City attorney David Wiltse did not allow this idea because it would violate the terms of the bidding process.
Mayor Martin Moylan and aldermen who voted in favor of the plan hailed it as a “pro-business” move that will save property taxpayers millions.
“We negotiated what was best for the residents,” Moylan said. “We turned a loser TIF into a winner.”
Supporters of the plan said that if the city didn’t go through with this bid, taxpayers could have faced a 5 percent increase in property taxes to pay for the debt generated by the TIF.
TIF 6 was projected to have been $5.9 million in debt by the end of the year, Wisniewski said.
Moylan said that if the city hadn’t gone through with the project, a new bid process could have taken another two years.
This development is in TIF District 6. TIF districts, or Tax Increment Financing districts, keep property tax value generated from new development projects. In turn, that money can be used for additional projects in the same district.
Construction for the project could begin as soon as this spring, said Michael Bartholomew, director of community development.
The plan has three separate projects. The restaurant on the property will be completed within 18 months. The parking garage, meant as a facility for long-term parking for O’Hare users, will be complete within a year and the hotel will be completed in six years, Bartholomew said.
Currently there is a billboard on the property, which the city will keep. Ace Rent-A-Car is on the property and will have to relocate, Bartholomew said.
TPS Des Plaines, LLC can lease the land meant for the restaurant to a named franchise. The agreement lists dozens of different restaurants, but examples include Cheesecake Factory, Olive Garden, and Arby’s.
The bidding process began about a year ago and legal representatives for the city have been in negotiations with the developer.