Borg Warner Property Rezoning Up For Village Board Vote Monday

FRANKFORT, IL — The Frankfort Village Board of Trustees Monday is expected to vote on a rezoning ordinance for the Borg Warner property, located at 300 S. Maple St. Borg Warner has told the Village it plans to shut down its operations at the site by the end of the year. Even though the ordinance would only specifically affect that property, the vote could have an impact on all Frankfort residents.

The meeting is scheduled for 7 p.m. at the Village Administration Building, 432 W. Nebraska St.

At issue is whether to rezone the Borg Warner property from its current I-1 Limited Industrial use to an R-4 Attached/Single Family Residential use. The proposed ordinance had been on the board's agenda at the Nov. 1 meeting, but the issue was tabled at that time to allow Village staff and Borg Warner representatives time to come to some agreement about future uses for the property.

The board at its Monday meeting will be faced with at least three likely choices: It could vote by a 2/3 majority to approve the rezoning ordinance; the vote could fail to meet the 2/3 majority required, which would keep the property at its limited industrial use status; or it could table the vote again, which would push a vote back until at least the Dec. 6 Board of Trustees meeting.

Here's a look at how the Village got to this point and what could come next.

How Did The Village Get To This Point?

The proposed ordinance to rezone the 1,128,204 square-foot property from its current I-1 limited industrial use to an R-4 residential use was recommended by the Frankfort Plan Commission/Zoning Board of Appeals by a 4-0 vote at its Oct. 14 meeting, according to Village documents. Votes in favor of the rezoning were tallied by the commission's Chair, Maura Rigoni, and commissioners Dan Knieriem, Ken Guevara, and Nichole Schaeffer; however; three commissioners — Will Markunas, David Hogan and Lisa Hogan — were absent from that meeting.

Commissioners and Village staff discussed possible uses for the property should it be rezoned to residential, including the potential to build as many as 96 townhomes, according to Village documents.

No Frankfort residents spoke during the public hearing portion of the Oct. 14 meeting; however, Rod Carter, an attorney for Borg Warner, did.

Carter told the commission that a potential buyer of the property is "paying attention to the proposed rezoning and is walking away from the deal," according to a summary of Carter's remarks in the minutes. Carter also told the commission that, "The Village is backing Borg Warner into a comer, leaving them no choice but to file a lawsuit," according to the minutes.

There was uncertainty about how much the Village would be able to generate in tax revenue either in the form of property taxes collected if the property were to be rezoned, or sales taxes collected should the zoning remain the same and a future buyer sells products that the Village could then collect taxes on.

Village staff estimated that the Village could collect as much as $828,000 in property taxes if 96 townhomes were to be built, but it is unknown how much, if anything, the Village could collect on sales taxes, as that would depend on whatever business next occupies the space.

What Comes Next?

Two Frankfort residents addressed the board during the Nov. 1 Board of Trustees meeting, according to Village documents. One expressed concerns over possible tax losses and asked that the Village and Borg Warner negotiate some kind of an agreement, while the other told the board that "a vast majority" of nearby residents preferred not to have an industrial building in the downtown area.

Trustee Adam Borrelli made a motion to approve the Plan Commission's recommendation to rezone the property to residential. Village Attorney George Mahoney told the board that because Borg Warner had that day filed a written protest then a special vote had to be taken in which 2/3 of the trustees present had to make "an affirmative" vote for the proposal. Frankfort Mayor Keith Ogle would not be allowed to vote in this instance.

Carter again was present and commented on the proposed ordinance, stating that "the Village does not meet the standards in the ordinance to rezone the property and further believes the Village is liable for the property's diminished value," according to Village documents.

Trustee Daniel Rossi made a motion to table the matter until Monday's meeting in order to give Village staff and Borg Warner time to try and come to some kind of agreement. That motion passed 4-3, with Trustees Margaret Farina, Michael Leddin and Rossi voting to table the original motion, while Trustees Borrelli, Jessica Petrow and Eugene Savaria voted to go ahead with the vote. Ogle cast the tie-breaking vote in favor of tabling the proposal.

Now the board will once again be faced with a decision: Will 2/3 of the trustees vote in favor of the rezoning or reject the proposal and leave the property as is, or will it vote to table the matter again if more time is needed to work out a suitable deal with Borg Warner?

If the Village votes to rezone, then one possible outcome could be a costly legal battle with Borg Warner, as its attorney Carter has indicated. If the Village rejects the proposed rezoning, then limited industrial use for the property would continue, though the Village would have a limited say in what future business would eventually occupy the space. Either choice will have consequences for Frankfort residents.

Residents can view a full copy of Monday's agenda and board packet by visiting the Village of Frankfort's website.

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