A $50 million plan to expand and enclose the River Oaks Shopping Center is at the top of Mayor Robert Stefaniak`s post-Christmas wish list, but some Calumet City aldermen are balking at the owner`s demand for city financing.
Members of the City Council say they are cautiously optimistic that an accord will be reached that will allow JMB Property Management Inc., owner of the open-air mall, to enclose it and add 50 stores in 83,000 square feet of additional retail space.
JMB wants to offset some of the cost of the project by persuading the city to share additional sales tax revenues generated by the expansion over the next 10 years.
But some aldermen say 10 years is too much. They also predict that the city`s already tight budget could wind up with a $400,000 shortfall because of lost sales taxes during construction.
”I`m working with the members of the City Council,” Stefaniak said.
”Hopefully, by the next council meeting all their criteria will be met.”
JMB representatives have met individually with aldermen to discuss the plan. Company officials are expected to attend the next scheduled council meeting Jan. 9 when Stefaniak will seek to bring the issue up for a vote.
JMB wants to take half of the estimated $1 million in extra sales tax revenues that the expansion would generate for Calumet City, according to city officials. Over a 10-year period, that would come to about $5 million.
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”Whether or not we want to sign away the future income of this city, I`m not so sure,” said Ald. Margaret Lundy (6th).
Concerning the possible $400,000 budget shortfall, aldermen said JMB has promised to make up the difference, but it won`t say exactly when the payment would appear in the city`s coffers.
”I have real issue with it,” said Ald. Michael Zimmerman (1st). ”The city`s got to find that money in that year.”
But others say Calumet City could be missing out on a golden chance to breathe new life into the 25-year-old center at 159th Street and Torrence Avenue.