City Council members are undecided about whether to help a developer secure a $20 million loan to renovate a strip mall and add a Public Works garage.
Many have indicated that they want to see the mall at St. Charles Road and Illinois Highway 83 renovated, but they are uncomfortable with a 77-page contract between Elmhurst and developer Federal Construction that would allow the company to borrow $20 million through a sales-tax revenue bond sold by the city.
The bond sale, known as conduit financing, has been the focus of contentious discussions among some officials and residents since its proposal last year.
Although Federal has agreed to put up the shopping center as collateral and would cede ownership of the mall to the city if the loan were not repaid, city officials said it is unlikely that would happen.
The deal is low risk for the city, Mayor Thomas Marcucci said.
“Are we paying the $20 million? No. We’re going to borrow the $20 million and lend it to (Federal) and get a new garage.”
Until council members vote on the proposal, however, construction of a public works garage remains on hold.
The city plans to sell its existing garage site behind the mall to Federal for $2.5 million and build an $8 million garage on a 6-acre property on Riverside Drive.
Some fear the proposed garage would cause safety and traffic problems. They want the council to consider a 22-acre site on County Line Road instead. The council is expected to discuss the issue Monday.
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