VILLAGE TO AUDIT DEVELOPER’S BOOKS

One week after the San Diego-based developer of The Glen Town Center said it was not obliged to begin repaying a $12 million loan from the village of Glenview, Manager Todd Hileman said he would send an audit team to look at OliverMcMillan’s books. 

“I think it’s important that we send a message to the board of trustees that we’re taking this very seriously,” Hileman told reporters.  The auditors will review receipts and expenses to determine whether conditions might actually trigger terms of a contract requiring a payment of at least $200,000 per year when the shopping center’s profits equal 12.5 percent of its costs.

Since OliverMcMillan claimed expenses in excess of $60 million, the company would have made an initial payment had it earned a $7.5 million profit.  In fact, the developer claimed net operating income of just over $1 million. 

Hileman seized on that number in a defense of Town Center’s performance and future prospects. “They did make a profit,” he said.  “The premise that it’s gloom and doom at Town Center is incorrect.”

And OliverMcMillan’s Chief Financial Officer made light of the situation in a two-page letter to Village Attorney Jeff Randall.  “As this was the first year of operations during which time the project was in still in [SIC] the process of leasing up both its retail and residential spaces,” he wrote, “I’m sure it comes as no surprise that the Net Operating Income for this Operating Year was substantially less than $7.5 million.”

Manager Hileman said he had no reason to doubt OliverMcMillan’s numbers and suggested the developer might spend even more in the years to come to build additional space. “That’s a good thing for us,” he said.  “We want them reinvesting in the Town Center to maximize income opportunities out there. . .The more attractive it is, the more shopping goes on, and that contributes to the sales tax base.”  He predicted a prosperous center would improve home values in the area – especially for Kimball Hill’s town homes that flank the shopping strip -- and said improvements to the buildings could mean greater property tax revenue.

The manager could not say how individual stores were doing at Town Center, noting the information is proprietary, but Don Owen, the chief administrator of Glen redevelopment, said he expects a report from Von Maur on May 1.  The privately-owned department store received a $5 million loan from the village toward construction of its $20 million building.  That money need not be paid back until Von Maur achieves sales exceeding $200 per square foot.  If that hurdle is reached, Owen said Von Maur would pay Glenview one percent of gross sales. 

In today’s edition of Crain’s Chicago Business, the president of Von Maur – a chain of 22 Midwest department stores – says payback may not begin for five or six years.  So far, he claims sales are meeting an internal target, but won't say what that is. "It's a little off the beaten path," says Jim Von Maur, "but our thinking is when you look at the density of the north suburbs and the disposable income, it's just endless."

OliverMcMillan’s biggest expense was the 10-screen theater, operated by Crown Theaters but owned by the developer.  It cost $2.15 million to heat and cool the place, pick up trash, install signs and pay the phone bill.  Other operating costs included a $1 million payment to property manager Mid-America, $1.56 million for marketing and advertising and more than $1 million to repair and maintain the parking garages.

Editor’s note:  Manager Hileman may be confident about OliverMcMillan’s books, but we hope the auditors go into this job with a healthy dose of skepticism.  This is a company so inattentive to detail that a website biography of its CFO identifies him as the “Chief Fincancial Officer.” 

THE LEASING GAME

Asked about space recently vacated by Marketfoods, an Arkansas-based grocery and restaurant chain that went bankrupt, Hileman said the developer has ten prospective tenants lined up.  He declined to say whether Market Foods was behind on rent payments when it closed.  “There could be legal action,” he said, “and we’re not going to get in the middle of that.  I don’t want to expose the village to anything here.”  

Glen administrator Don Owen said 120 of 181 deluxe apartments above shops at The Glen have been leased.  Explaining the rental market is seasonal, Owen said OliverMcMillan expects to have full occupancy by June.  He claimed the lack of large signs  hurt initial leasing efforts and said prominent new signs on Willow Road and Lake Avenue should remedy that problem.

Industry observers have questioned the wisdom of placing a shopping center so far from highways.  Old Orchard and Northbrook Court, for example, are both adjacent to the Edens Expressway.  Hileman said Town Center is based on a different shopping concept – a mix of residential and retail units that developers call a “lifestyle center.”  Theoretically, residents patronize the shops and consumers from outside the development must be “trained” to find it.

Indeed, Crain’s story about The Glen Town Center brands it “too hard to find.”  Reporter Sandra Jones writes:

“Shoppers are having a hard time finding the Glen Town Center, and it's taking a toll on business. The Main Street-style outdoor shopping center, anchored by Iowa-based department store Von Maur Inc., opened in October 2003 amid rows of luxury houses and townhomes at the former Glenview Naval Air Station.

“The idea makes sense: Tap into the abundance of disposable income on the North Shore. But the mall's hidden location has made for a tough sell.

“Today, several storefronts still stand empty. Retailers complain about slow traffic. And upscale grocer the Market — one of three stores nationwide from Marketfoods Ltd., an Arkansas-based startup founded by former Wal-Mart Stores Inc. executives — shut down in January and filed for Chapter 11 bankruptcy protection.

“Shopper Patricia Fertel says she went onto MapQuest.com for directions to the movie theater and still had problems. ‘It's impossible to get to,’ says Ms. Fertel, a North Shore resident. ‘You go through all of these homes and they all look alike.’

“About 42,000 cars a day drive down Willow Road, north of the center, and another 31,000 cars go down Lake Avenue to the south. But the Glen isn't visible from either road. To get there, motorists must drive down Patriot Boulevard, which connects Lake and Willow and leads to the center.

“Mr. Oliver is taking steps to boost awareness of the mall and make it easier to find. Last month OliverMcMillan put up large signs on Willow and Lake. It also budgeted $500,000 to $700,000 a year for advertising, marketing and events — two to three times the $250,000 the developer typically spends on malls of this size.

“Kohl Children's Museum is slated to open nearby this fall, which should increase mall traffic.

“Kinga Kosek opened Kingaroos Inc., a high-end European children's shoe store, in early February. ‘I will give it a year and see how it goes,’ says Ms. Kosek.

“Its first year, OliverMcMillan collected $7.5 million in gross receipts from the center, mostly in rent from retailers and fees from the movie theater. That's half the $14.8-million goal once the center is fully operating, says Mr. Oliver. Glenview paid OliverMcMillan $76.5 million to develop the mall.”

ROAD CONSTRUCTION WON’T PUSH FIREWORKS TO THE GLEN

When the village announced reconstruction of Shermer Road beginning this spring, some planners at Village Hall thought it might be necessary to move July 4 fireworks to The Glen.  Shermer is adjacent to the Glenview Golf Course site where the annual show has historically been held, and The Glen’s Gallery Park was built, in part, to accommodate the pyrotechnics each summer.

The park district has not said whether it will eventually make the move, but village officials say the district won’t move in 2005.   Police designate Shermer as a one-way street before and after fireworks to streamline the flow of traffic.  During construction, Shermer will already be one-way southbound.

SHERMER CONSTRUCTION DETAILS TO COME

Village officials promise details in their next community newsletter, but they hope work on Shermer Road will begin in mid-March between Glenview Road and Central, with completion expected by July 4.  Stage two of construction will start at the end of June between Lake Avenue and Glenview Road.  That segment of the road will be closed except to local traffic. Planners hope to finish that stretch by the end of August.

Work on Shermer from Central to Golf is set for the fall, with estimated completion in the spring of 2006.  Again, traffic will flow one-way southbound.  The village says it has met with school officials to begin planning new bus routes and will hold an open house for the public on March 10 at 1333 Shermer Road.  Residents are invited to stop by between 3 and 8 p.m. for informal discussions about the project and how it may impact specific homeowners.

DOWNTOWN RESTAURANT DEAL IS DEAD

The upscale restaurant and martini bar that had hoped to do business in downtown Glenview is backing away from the former Renneckar’s Pharmacy site.  Glenview resident Lenny Prikhodko, a prospective investor in the Vis a Vis Lounge and V2 Restaurant, told The Watch that financial problems were to blame and said he did not expect to open elsewhere.

The Gourmand Management Group, a consultant engaged to manage the property, confirms the project has been “suspended indefinitely,” but claims to be considering a new site.

V2 would have featured the culinary creations of celebrated Chicago chef Eric Aubriot who left his job at Fuse, a trendy downtown restaurant, in August.

Village President Larry Carlson told the Pioneer Press he was concerned about the continuous turnover in owners of the building.  It was first acquired by Dominick’s, then sold to local developer Paul Wing who, in turn, sold it to S and S Real Estate, owned by Steven Siegel.  Carlson said getting a restaurant or some other tenant into the partially- renovated building “would certainly improve the climate downtown.”

DOWNTOWN DEVELOPMENT MARCHES ON 

Consultants hired to help plan redevelopment of the downtown area will make their recommendations in late spring or early summer. Village Hall says it may share that plan with service clubs, homeowners associations and neighborhoods before asking the trustees to debate and vote on proposals. Development Director Mary Bak says she already knows of one thing that will be done.  No one is happy with the pedestrian crossing at Waukegan and Glenview roads, so planners will start looking at ways to improve the intersection.

Beyond that change, Village Manager Todd Hileman says nothing will happen unless property owners decide to sell their land and buildings.  As properties are sold, he explains, the plan will serve as a guide for new construction the village should approve. 

Bak and Hileman say the consultants are looking far down the pike – that the transformation they propose will take place over decades.

The next meeting of the downtown redevelopment commission is at 7 p.m. Thursday, February 17 at Village Hall.  The consultants will present a summary of public feedback for various development scenarios.  The public will be invited to comment, or you can send your thoughts to Village Hall.  E-mail joanneh@glenview.il.us.

WEST GLENVIEW TO GET GLEN SIDEWALK CONNECTION

After years of sharing the road with cars and trucks on West Lake Avenue and Shermer Road, pedestrians, cyclists and skaters will soon have a sidewalk linking Glenview’s western neighborhoods to The Glen.

Public Works Director Bill Porter says a walk will be built later this year from Shermer south along Willow Road to Patriot Boulevard.  Residents can also access The Glen via Lake Avenue, and West Lake could eventually have a sidewalk now that Glenview has annexed homes and businesses in the vicinity of West Lake and Greenwood.

LOCAL STATE HOUSE RACE COST NEARLY $1 MILLION

Last fall’s race between Glenview’s incumbent State Representative Beth Coulson and Skokie Trustee Michele Bromberg cost more than $900,000 according to newly-released campaign finance reports.  The documents showed Bromberg spending $450,686 -- $455 more than Coulson.  Much of that money came from the Democratic Party of Illinois, and Coulson – who was ultimately victorious – lambasted the Bromberg camp, saying it was “offensive” that forces outside the district had attempted to influence local votes.

Most of Coulson’s money came from political action committees and from other Republican candidates.  The Sierra Club paid for one of Coulson’s campaign staffers, and money for mailings came from Congressman Mark Kirk, the Illinois State Medical Society, Planned Parenthood, the Realtors Political Action Committee and the Republican Party of Illinois.

To put the $900,000 race in perspective, candidates in neighboring District 18 spent less than $170,000.

On February 1, Coulson introduced a bill in Springfield to sharply limit campaign contributions.  She’s tried twice before to get similar legislation approved, but those reform efforts have failed.

SCHOOL NEWS AND BLUES

-- Schools teaching students from The Glen recently received tax increment financing payments of nearly $5.3 million.  Village planners expect to provide “make whole” payments until at least 2014, at which point the TIF could end and schools begin to collect all of the tax revenue that is due them.

-- The High School District 225 board will again tackle the topic of zero tolerance for drug or alcohol use on campus at 7:30 p.m. Monday, February 14 in the administration building,1835 Landwehr Road.  Some board members are leaning toward an end to the automatic expulsion of those who violate the policy, calling instead for a 10-day suspension, but a discipline review committee wants stiffer penalties – 4-6 week suspensions.  Glenbrook South social worker Sue Nadel warns a 10-day suspension is too lenient and will mean, “you are going to have kids bringing drugs to school.”

-- Glenview’s middle school PTA says it’s willing to raise money for playground equipment to be used during students’ lunch breaks at Attea and Springman. Among other things, parents have proposed the purchase of climbing boulders to promote physical activity, social interaction and stress relief.  Some kids like that idea.  Others would settle for a bench, noting that the actual time for recess is relatively short once kids have waited in line to get and eat lunch.  Basketball hoops, soccer balls, Frisbees and jump ropes are now available. The school board plans to consider the request before approving consultations with students, parents, administrators and park district personnel.

LIBRARIANS CELEBRATE PAY RAISES -- QUIETLY  

Staffers at Glenview’s public library aren’t saying much, but some are getting pay raises of 30 percent after a consultant told the library board what other communities are paying their library personnel.  Those raises have boosted the library’s payroll by $194,000 -- up 7.6 percent from last year. Some hourly staffers received 2 percent more, but Executive Librarian Vickie Novak will now earn $114,495 – up from $91,000 in 2004. 

The Pioneer Press has asked for a copy of the consultant’s report, but the library board is keeping it secret.  In response to a freedom of information act request, Novack claimed, “The records requested are preliminary.  .  .and have not been publicly cited.”  In fact, library trustees have discussed the study at several board meetings and voted to approve the consultant’s recommendations in December.

Editor’s note:  While we’re happy to see Glenview’s library staff getting their due, it’s disturbing to see our library board again playing games with information. These raises ultimately come from the taxpayers and are, presumably, based on a tax-funded consultant’s report.  Clearly, the taxpayers are entitled to have a look.

VILLAGE BOARD PREVIEW

-- At this week’s meeting of the Glenview Village Board, the trustees will vote on new parking restrictions that would allow owners of vehicles that carry a B plate – specifically small trucks, vans and SUV’s – to park in driveways of residential neighborhoods if they’re not being used for commercial purposes.

-- The trustees will take another look at the budget for a new police station now expected to cost just under $22 million – awarding a contract for the next phase of construction. 

-- And the board will consider renewing a contract with real estate consultant Mesirow Stein for on-going help in planning and marketing The Glen.  Among other things, the village will ask Stein to evaluate our  need for additional bond issues and make recommendations on how much to spend luring corporations and tenants of currently undeveloped properties -- especially in the industrial park.  The village hopes Stein will help us gauge future property tax revenues so we can accurately project when the TIF might end. 

Editor’s note:  Maybe Glenview should save the $122,000 fee, since it’s a safe bet the TIF will end on the latest possible date allowed by law.

DOORS OPEN AT VILLAGE HALL

Glenview’s new village manager continues to reach out to individuals and interest groups in the community, scoring high marks this week for his conduct during a meeting with about 40 downtown business owners.  They called the get together “historic,” and while Hileman made no promises, a spokesman for the group said he seemed sincere and open to new ideas.

The manager seemed especially interested in the remarks of long-time resident and designer Bill Dose whose vision for downtown Glenview is very different from what consultants have proposed.  Dose argues that drawing interesting new businesses to the area is contingent on keeping rents relatively low.  Many people who operate unique shops do so because they love what they sell and enjoy interacting with the public.  Profit margins are relatively low. By building new retail space with relatively high rents, Dose believes we will drive small business away and doom ourselves to chain and franchise operations.

Hileman also held the first of what he says will be regular monthly meetings with the media.  Reporters from The Watch, Pioneer Press, Glenview Journal and Crain’s Chicago Business had the chance to question the village manager, development director, head of public works and director of Glen redevelopment for about an hour Wednesday.   

HOLLYWOOD WATCH

A film shot at The Glen in 2003 is finally in theaters.  Here’s how the production company describes Uncle Nino:  

“An elderly Italian peasant (played by Pierrino Mascarino) comes to America for the first time to spend some time with his nephew, Robert Micelli (played by Joe Mantegna), and his family. With his violin, a suitcase full of homemade wine, and a photo of his hero, Abraham Lincoln, in tow, Uncle Nino expects to be embraced by the country of his dreams. What he discovers instead is a place of take-out food, manicured lawns, teen smoking, processed vegetables, and a barely communicative family -- each disconnected from the others, caught up in lives of multi-tasking.

“While Robert works round-the-clock to ensure a much-deserved promotion, his wife Marie (played by Ann Archer) is busy organizing the household, and growing increasingly lonelier.  Fourteen-year-old Bobby (Trevor Morgan) devotes more time to his garage band and petty acts of neighborhood vandalism than his schoolwork, and 12-year-old Gina (Gina Mantegna, making her film debut) spends most of her time at her friend’s house.

“Though barely conversant in English, Uncle Nino slowly begins to connect with Gina through her love of dogs and Bobby through his passion for music. It isn’t until Uncle Nino and the kids tear up the entire front yard and plant an elaborate garden, however, that Robert confronts the uncle he hasn’t seen in 30 years. Finally learning the true reason for his uncle’s visit, Robert reflects on his life and reconsiders the things that are truly important to him.”

The film was directed by suburban Chicago resident Bob Shallcross, who is best known for “The Perfect Season” -- a McDonald’s commercial so moving that it won Shallcross a chance to direct the 1994 family film Little Giants starring Rick Moranis and Ed O’Neill.

Glen Resident Charmaine Conaghan left her home on Bennington Court so it could be used as a set for the film. She missed her chance to be an extra in the movie, because she was busy giving birth to her fourth child. This year she was invited to a preview of the film but missed much of it, because she was “chasing my toddler around.” Still Conaghan was glad to have been involved with the project and told the Pioneer Press, “It’s nice to have a movie out that shows values and the importance of family.”

Several critics, including one at TV Guide, liked the unrated film that’s in limited distribution, but many were less than enthusiastic:

Roger Moore of the Orlando Sentinel, wrote: “It's like sitting down for risotto al Gorgonzola at a fine restaurant, hearing the can-opener in the kitchen and realizing that your chef's named Boyardee.”

Josh Larson, who writes for Sun Publications, didn’t care much for the main character: "This guy didn't come from overseas -- he's straight from the Italy section of Epcot."

And Ed Gonzalez of Slate Magazine said: “Though convinced it’s helping people to rediscover their roots, the film succeeds only in planting corn.”

YOUTH SERVICES NEEDS YOU

Youth Services of Glenview/Northbrook needs volunteers, and training starts in March.  

There are opportunities to help for a single day or longer. After school and weekend groups offer a chance to work with children taking part in structured activities.  Study Buddies is a homework help program for 2^nd-8^th grade students that meets from 6:30-8 p.m. Thursday nights. Programs called “Befriend A Youth” and “Parent Partner” are one-on-one efforts for kids and adults to give or get some extra support. For more, information, call Kelly O’Brien at 847-724-2620.

ON THE BEAT

-- Earlier this month, Von Maur at The Glen reported two thieves in its jewelry department.  A 32-year-old Chicago woman was arrested and charged with attempting to steal a John Hardy ring.  She was released on a $1,000 bond. A second woman escaped after lifting another ring valued at $1,295.

-- At 5 p.m. on a Wednesday evening, an employee of Epco Paint at the corner of Glenview and Lehigh roads reported a white male in his 50's walked up to her in the alley behind the store, then opened his dark grey trench coat to reveal his naked body.

VILLAGE ADDS POSTAGE-FREE MAIL BOXES

Commuters can now send correspondence to the village in a brown municipal mailbox at the downtown Metra station, and a second box will go in at The Glen of North Glenview station soon. A third is available at Village Hall. While no postage is required, officials remind those paying bills to include a check rather than enclosing cash.

SAVE THE DATE

-- Get to know members of Glenview’s Korean community at a reception to be hosted by the Canaan Presbyterian Church, 1240 Greenwood Avenue at 7 p.m. Saturday, February 26.  The event is sponsored by a group called Building Unity Through Diversity and will feature food, fellowship and music.  For more information, call Tom Murphy at 847-733-3532.

-- Join the Village Senior Services Division for "Medicare Benefits in 2005" at 1 p.m.  Thursday, February 17 at Park Center.  This free, hour-long program will feature Jean Cleland, a social worker from the North Shore Senior Center in Northfield.

-- State Senator Susan Garret will hold a public hearing at 2 p.m. Friday, February 18 to explore how absentee ballots are processed.  County clerks now have the authority to reject absentee ballots when they think signatures don’t match. This issue came to Garrett’s attention when her daughter’s vote was rejected due to a signature discrepancy.  The hearing will take place at the College of Lake County, 111 N. Genesee St., room 205 in Waukegan.  For more information call 847-433-2002.

-- Wildflower expert Carol Nelson will preview spring when she speaks at the Chicago Cultural Center in Lincoln Park at 1:15 p.m. Thursday, March 3.  The Wildflower Society meets across the street at the International House of Pancakes for brunch at 11:30 a.m.  For more information, e-mail Jeannezasadil@hotmail.com .

-- The Glen Redevelopment Commission meeting originally scheduled for February 16 has been cancelled.  The next meeting is scheduled for 7 p.m. Wednesday, March 2 in the board room at Village Hall.  

-- The Glenview Public Library offers Basic Internet and Intermediate Internet classes for those who want to surf the web more effectively.  A third course -- Investing @ GPL -- will show residents how to use online resources to search stock information and corporate reports from home. Sign up at the Information Desk or call (847) 729-7500 ext. 112.

READERS WRITE:

Joel Cahn writes about plans for downtown redevelopment: “Thanks for publishing the development scenarios. Could you explore the pros and cons of having higher density housing units in Glenview as proposed by the consultants?  I noticed this trend toward higher density units started about 10 years ago.  Do higher density units take value away from single-family home owners that seem to provide more open space which is one of the charms of Glenview?  Do changes in zoning to allow higher density provide a windfall for developers, or is there an offsetting benefit for the community?  Who wins from high density?  Who loses?”

The Watch replies:  These are excellent questions that should be put to the trustees and their consultants before any significant new development is approved.

Barb Palmer asks the natural question after reviewing consultant ideas for downtown Glenview: “Has anybody even thought about the terrible congestion that all this development will have on Glenview Road?  Seems to me we just recently survived the reconstruction there.  Who pays for doing it again? How does the village choose the firms they hire to do their consulting on downtown development?  Are they hiring someone who has created a density that works for another town that would not work for ours?” 

Anticipating more problems with traffic, JAS suggests residents “invest in Mini Coopers, new bicycles or Adidas.”

JLo says she “can't even compose a letter that could be printed in regard to the ideas of the downtown redevelopment consultants.  Will anyone save us from ourselves?”

And JC questions Glenview’s on-going reliance on paid consultants: “I wonder if the continual use of increasingly higher-priced consultants for every small/large decision
affecting Glenview can be avoided.  Have any of our trustees addressed this use of tax dollars with planning/library board or the park district members? What is the point of resident feedback if another consultant is always the answer?  Is fear of lawsuits driving these businesses?”

 AL asks about hikes in sewer and water rates for the northwest section of Glenview. Those services had been provided by Northfield Township. 

The Watch replies:  About 1,200 northwest side residents are coming into the village fold as part of an agreement with Northfield Township. Those customers will now pay the same rates as everyone else in Glenview. Charges are higher because Northfield Township has not raised rates since the early 1980’s.

Two weeks ago, a reader asked about plowing of local cul de sacs.  He wondered why village crews persist in plowing toward the outer side of the circle, dumping large amounts of snow at the ends of people’s driveways.  This week, Glenview’s Director of Public Works said plowing toward the center of a cul de sac is dicey, because there’s less room there for snow, and pushing piles of snow toward the center would require village trucks to back into residents’ driveways, something the village is not prepared to do.

 YOUR TURN:  Write to glenviewwatch@aol.com or 3537 Maple Leaf Drive, Glenview, IL 60026. If you haven’t already done so, please consider making a contribution to support The Watch. Non-deductible checks should be payable to Glenview Watch. Thanks for your support and for reading. Dean Schott and Sandy Hausman, Co-Editors.

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