No Controversial Darien Apartments After All: City

DARIEN, IL – A New Jersey-based developer has dropped his plan for a four-story apartment complex in Darien, just days after aldermen approved the zoning, according to the city.

In an email to the City Council on Friday, City Administrator Bryon Vana said the developer, Kumar Bhavanasi, maintained the redeveloped property was not financially feasible without an upfront financial incentive payment of $10 million or more from the city.

The apartment building was to be a part of the proposed overhaul of the largely vacant Chestnut Court shopping center at 75th Street and Lemont Road.

"Without an upfront incentive from the city, and considering other challenges, Kumar has decided that the redevelopment of the center will move forward, but will not include a residential component," Vana said.

Last Monday, the council unanimously approved the 156-unit complex, although nearby residents objected to the proposal at several city meetings.

The city is awaiting a report from a consultant on creating a tax increment financing district, or TIF, which could aid the developer.

In an interview Monday, Vana said the tax district process was moving forward because it could help upgrade the shopping center.

As it is, Chestnut Court's property value is dropping, which means other local taxpayers will pick up the slack for the decrease in tax income, according to the city.

"The decreasing valuation is problematic for all taxing bodies," Vana said.

Getting new tenants, he said, would produce more sales tax income.

He said the city could have obtained the $10 million by issuing a bond, but that would be a financial risk. If the tax district's proceeds were insufficient to make the bond payments, the city would have been required to dip into its general account, he said.

"This could be significant considering any increment generated in the first few years of a TIF would be minimal," Vana said.

The tax district process could take eight to 10 months, a time frame that may significantly increase the project's cost, he said.

About Bhavanasi, Vana said, "He has really been a wonderful property owner to deal with. He is open to concepts. He's been really professional."

Mayor Joseph Marchese plans to update aldermen on the efforts to create a tax district at the council's meeting next Monday. The city's attorney, John Murphey, is also expected to speak about the issue.

Under state law, a tax district's growth in property tax income for 23 years would be diverted for use in the district itself, rather than taxing bodies such as schools.

State law allows a tax district's money to be used for such things as utilities, stormwater improvements, parking lots and building renovations. But the money cannot be spent on the construction of privately owned buildings.

Center Cass School District 66 and Downers Grove High School District 99 are taxing bodies in the area of Chestnut Court. Schools are often concerned about the loss of future tax money from tax districts.

In Clarendon Hills, local school districts opposed such a district. The village later approved it, but agreed to share some of the money.