Title/Name/Summary
Main Street Village West - 161st & LaGrange - Settlement Agreement
History
Main Street Village West, located at 16202 S. LaGrange Road was approved in 2006. The developer Main Street Village West, Part 1 LLC has since been foreclosed on by the lender, Old Second National Bank (OSNB). The existing development agreement is still valid and runs through June 2013.
In 2009, the Village provided legal notice to both the developer and the bank that the property was not being maintained and failure to maintain would result in Village work orders and liens against the property. Both the developer and Old Second National Bank refused to comply with Village code. Subsequently, the Village took over the maintenance of the project, including removal of illegal dumping, weed and grass control, and repair/paving of potholes in 161st (Ravinia) entrance, and work on the detention ponds - per village code. During this time, Village liens accumulated against the property. Additionally, a hold was also placed on all permit applications for the project. The Letter of Credit (LOC), in the amount of $241,617.60 was pulled by the Village, for remaining outstanding public improvements not completed.
There are a total of 8 lots (not including Mimi Café and Rock Bottom) with liens against them. Additionally, the public improvements tied to the LOC still need to be completed and exceed the value of the existing LOC ($450,000). During the last few months, Village staff has been working with Old Second Bank to resolve all of the outstanding issues in order to allow the hold on permits to be removed. After a series of negotiations, the following settlement agreement resolving claims is being recommended for Village Board approval:
Settlement Proposal
• Payment of half of the $42,512 lien - $21,256.
• Elimination of the NE Detention Pond - Instead of repairing the existing NE detention pond (along LaGrange Road) as part of the public improvement punchlist, the Village is requesting for the OSNB to fill in the pond, bring to grade/seed and deed the property to the Village of Orland Park. This pond has been an eyesore since construction and will continue to have maintenance problems. Staff had previously discussed this option with the former developer but were unable to get finalized. CBBEL has confirmed the elimination of this pond will not adversely impact storm water in this area or development zone. Additionally, MWRD requirements will still be met by the existing pond on the NW side of property. Once Petey’s property to the North develops, the additional Village storage requirements can be met within the new development.
The property can be used as part of the Ravinia Road Extension and will allow for a bikepath and sidewalk to connect through and across LaGrange. Additionally, enhanced landscaping and public entry/art could be planned for this gateway in the future.
• Ravinia Avenue Extension - There is a small section of the 161st Street (future Ravinia) that was not completed to the private property line by the former developer. It totals approximately 4500 sq. ft. of missing roadway. OSNB has asked the Village to incorporate this segment into the overall Ravinia Avenue Extension project - which is planned for 2012 (at no cost to them). Given the small area in question and negligible cost - staff recommends approval of this condition.
The Agreement outlining these terms is attached for Village Board review.
Recommended Action/Motion
I move to approve the Agreement by and between the Village of Orland Park, (“Village”) and Old Second National Bank, N.A. (“Bank”) Resolving Claims Related to the Development of Main Street Village West (16202 S. LaGrange Road).