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Rejected Developer Gets Another Shot at Downtown Lake Zurich

In a split decision, the Lake Zurich village board agreed to entertain a presentation by John Breugelmans of ARDE at the next village board meeting.

 

 

Developer John Breugelmans told the Lake Zurich village board, Monday night, during public comment, that, while he has been rejected numerous times, he is still interested in developing in downtown Lake Zurich.

In a split decision, the board decided to allow Breugelmans’ presentation at the next meeting.

Breugelmans told the board that the formal process they are currently undertaking is slow and could take until 2015 until there is any activity on Block A, across from the Promenade. 

“My proposal is to revive the 2012 project. I ask the board to approve that I can be put on the agenda for the next board meeting to give the detailed proposal. Sixty days after, I a can start a project and provide proof of finance,” he said. 

Trustees discussed Breugelmans’ offer at the end of the meeting. Some trustees thought it would be disruptive to the RFQ/RFP process that the board agreed to follow last October. Others thought it couldn’t hurt to entertain his proposal. His proposal had the highest rating by village consultant Teska of the four developers that were rejected last summer.  

“Unfortunately we were down this road eight months ago when we tried to get something going,  but the board decided to wait and go with the RFQ,” Trustee Terry Mastandrea said. He said he would not want to entertain Breugelmans’ proposal, only because village staff is so close to getting the RFQ out. 

The RFQ/RFP process is one in which the village first asks potential developers for an RFQ, Request for Qualifications. In the second step of the process, the village chooses a few developers and asks them to provide RFPs, Request for Proposals. 

Village Manager Jason Slowinski expressed concern that the village couldn’t allow developers to approach the board on an individual basis while going through the formal RFQ process.

“If we’re working with a developer outside of the established process, who is going to go through the established process? I think that is the reality of it. Either we continue with the process or we entertain developers on an individual basis. I don’t know that you can do both,” Slowinski said. 

“We should have had an RFQ, RFP out last summer. We all understand the urgency of the TIF. I’ve been one of the biggest supporters since day one for the RFQ/RFP process, but I’m concerned about the time frame,” Trustee Jeff Halen said. 

“Why are we walking away from a guy who says he has financing? He wants one presentation meeting. I don’t think it affects the process. It’s not like we have developers pounding down the door,” Trustee Tom Poynton said.

In a vote, Trustees Poynton, Rich Sustich, Halen and Jonathon Sprawka voted to allow Breugelman’s presentation.  Trustees Mastandrea and Dana Rzeznik voted to continue with the RFQ/RFP process. Village President Suzanne Branding does not vote, but expressed interest in continuing with the RFQ/RFP process. 

Branding said the village already spent the time and energy on the RFQ process and she feared other developers would want to approach the board individually, thereby disrupting the process. 

Breugelmans will be allowed to make a presentation at the April 1 meeting.

 

Watch the village board meeting online.

 

 

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Lead Follow or Get Out of the Way March 21, 2013 at 05:33 pm
Again, I'm not sure what rock you live under, but there is plenty of development in the downtowns surrounding Lake Zurich, so weak is a word I would use to describe that argument. My assertion is that the DH were lazy and did not properly investigate the candidates. You can sight that DH endorsement all day long, but the CURRENT state of our Village should be proof enough for all residents on election day.
Harold The Squirrel March 21, 2013 at 05:42 pm
You still haven't filled out the branding top ten list Joe K! Tell us what the Mayor has done....As they would say in Kissimmee "I'm waiting"
Resident 225 March 21, 2013 at 08:13 pm
Joe K if you really believe that Suzanne is responsible for anything that's been "achieved" in LZ over the past 4 years you're out of touch. You also say she's been working with a split board. Well, the board wasn't split originally. Most of the Trustees were former slate members of Suzanne's. What each of them have found is that Suzanne hasn't been entirely truthful about her desire to develop downtown. Those Trustees are trying to get something going in spite of Suzanne, not in conjunction with her. Another thing...is one of Suzanne's "achievements" that $2.4 million is missing from our coffers? Has there been a resolution to this and is our Public Works Dir back on the job? She's got to go for the good of the Village.
Resident 225 March 21, 2013 at 08:20 pm
Joe K - you probably don't go to Wauconda or Barrington to see what they've done even during the down economy. I can only hope that the voters who want Suzanne out will vote. Suzanne has not had an idea of her own for years and if she's taking credit for things that others have thought of and done that's typical of her. The point is she doesn't lead and she doesn't promote the Village. She doesn't want development in her "backyard" and her actions show that.
JFall March 21, 2013 at 08:38 pm
Lots of good discussion below, but let's consider Branding's own words in her DH candidate profile:
"My #1 campaign issue is bringing development to the downtown area (TIF). From March 2009 until January 2011 a TIF development contract was granted to an exclusive developer. After multiple extensions, he was not able to obtain the financing. Since January 2011, my opponent has taken the lead on the TIF Evaluation Committee. Discussions were held and little happened until I became involved in later 2012 and had the RFQs and RFPs approved by the board." "Until I became involved in later 2012"?!? Where was she? Come on, this is not leadership. If nothing has happened, and nothing is slated to happen, it is the result of Branding's failed leadership...not her opponents', not anyone else's. Again, the buck stops with her. As a new resident, it couldn't be clearer: there is no way we vote to give this mayor another 4 years.
JFall March 21, 2013 at 08:41 pm
Joe K - respectfully, the DH endorsement says nothing. It couldn't be more vague.
Which businesses has she attracted to the village? What 'important accomplishments' has she overseen? These are honest questions that I think many of us not involved in LZ politics would like direct, objective answers to.
Jim Tarbet March 21, 2013 at 08:55 pm
If anyone does not like my moniker, call my mother about it.
If you wish to challenge my facts, I'll give you the facts as they were presented - let me see yours. If you want to argue about what happened in meetings (and reactions), I will be glad to since I was there [yeah, every meeting since long before Tom & Suzanne ever ran for office]. Where were you? ... and a pox on your house for turning this into an insult session. Since ESG defaulted, the trustees have attempted to move things. Teska has provided timely responses and have not been bleeding us dry (but I share the concern). The problem has been Village Hall - 70 E Main - that Black Hole of Taxpayer Dollars. Staff has not moved on any of it. If this is a staff issue, fire them. If Staff is only following orders, then fire the one giving them orders. As far as endorsements go, they are a joke - a man who has trouble finding Lake Zurich, neither knows or understands the Village somehow knows what's best for us? Come on!!!
Disgruntled March 21, 2013 at 10:07 pm
Before you go running down Breugelmans on this, I suggest that you research the topic better. He bought a bankrupt property where the original developer was charged with bank fraud and left a couple million in liens hanging.
His story in the "convert to apartments" is exactly the same thing that everyone has said for a Lake Zurich project (except ESG who has no money for anything). I don't know if he's real but at least he's a warm body with money - supposedly. Let him speak.
Harold The Squirrel March 21, 2013 at 10:55 pm
Res 225 - the Public Works Director is no longer with the Village. Where is the money? We've been told it was an accounting mistake by the old Finance Director (whom the Pres said we couldn't live without). Glad things are moving in the right direction in spite of who's in the center chair. It would be alot easier with a change!
Joe K March 21, 2013 at 11:18 pm
If staff has not moved the board has voted to replace folks who aren't doing their job. So in this matter they are helpless. They pick and chose when to act and when to be helpless.
I still find the Daily Herald object and fair. Not subject to blame and finger pointing. They talked to all the candidates, heard their positions, and said Branding earned the endorsement for a second term. I agree.
Harold The Squirrel March 21, 2013 at 11:43 pm
Joe, the good people of LZ are awaiting the list of Branding's accomplishments. You and Jim Johnson seem to have a lot in common. Lots of blame and finger pointing, without any specifics of what your team has accomplished. Jim Johnson is an interesting fellow. Supported Tolomei, then went against him with Branding, Tolo's friend again (when Suzanne was trying to block ESG), and then back to Branding. Flip Flop Tick Tock....the debt clock on downtown LZ goes BOOM into TIF payments on your tax bill.
Joe K March 21, 2013 at 11:52 pm
I have been waiting to hear all that the board did. The deal with ESG was flawed from the beginning and I believe the board voted to kill the deal. ESG should have been blocked from the beginning. Too bad it blocked out potential developers. So again the RFQ/RFP process is a good thing. Unqualified developers don't get to gum up the works. But, they want to skip the process. Why not use those super budget skills to work around the staff like in the budget process? Maybe it just a one trick pony?
Harold The Squirrel March 22, 2013 at 12:32 am
Joe...yet again another Johnson tactic! Please answer the good citizens of Lake Zurich first. You've surely had the benefit of 24 hours to prepare.
Disgruntled March 22, 2013 at 12:44 am
Joe, you clearly have no clue. You have let your mouth do your reading. Open your eyes.
1. There is no RFQ/RFP process at this time - not that the trustees know of. 2. Branding claims to have fixed everything - ask HER where they are. 3. Absent anything else, someone has to do something. She hasn't done it!! 4. The Budget skills will be coming shortly, I am sure. Based on HER failure, this 2-3 month process must be accomplished and approved in a month. You & Sandy ought to learn something about how government is supposed to work. Oh, & take Jim Johnson with you!
Lead Follow or Get Out of the Way March 22, 2013 at 04:18 am
Joe - I hate to burst your bubble, but THERE IS NO RFQ/RFP PROCESS!! I have read that from you over and over and I am mystified that you keep saying it. CURRENTLY, THERE IS NO PROCESS IN PLACE FOR DEVELOPERS TO FOLLOW IN ORDER TO PRESENT PLANS TO THE VILLAGE! Please do not say it again.
P. St. Helen March 22, 2013 at 10:01 am
I cannot understand why intelligent people have a problem with having developers prove their qualifications. That's what an RFQ is. And I think past bankruptcy activities should concern everyone. Certain people manipulated behind the scenes to get this developer in right before the election. Have you seen his plan? It's ugly!!!! and why can't he provides his financials up front? Mayor Branding got 1.9 mln from the CNRR for residents,aoynton was going to settle for half of that. Electrical aggregation or do you like to pay more? Staff Salary savings of $120,000 a year. Annexation of 53 acres at quentin and 22, and Mariano's moving in. the list goes on. And don't forget - Poynton is in charge of the TIF development committee, not the mayor. he and his boys have done nothing. There are more facts but most negative people don't want to be confused by the facts. Please educate yourselves.
Lead Follow or Get Out of the Way March 22, 2013 at 01:04 pm
P. St. Helen - And I repeat...CURRENTLY, THERE IS NO PROCESS IN PLACE FOR DEVELOPERS TO FOLLOW IN ORDER TO PRESENT PLANS TO THE VILLAGE! Please do not refer to the Village having an RFQ/RFP "process" again. Have the staff produce the process and the developer will be happy to follow it. The Village Manager states that if Mr. Bruegelmans follows the (eventual) "process" nothing he submits will even be looked at until next fall. If history repeats itself, months will stetch into years. The residents are frustrated by these continual roadblocks and delays. This gentleman is just asking to present a concept (as heard in the minutes of the meeting). The rest of your post makes absolutely no sense, other than in its apparent attempt to be negative, mocking, and deflective.
Resident 225 March 22, 2013 at 04:51 pm
P. St. Helen - RFQ/RFP processes are pretty standard in business. Staff could pick a very good sample from the internet and have this done in 30 days. It has taken a YEAR and still nothing has been voted on by the Board. I'm not opposed to an RFQ/RFP process. I'm opposed to Suzanne's lack of leadership and when things like our taxes are at stake we need to jumpstart and not wait for a process that doesn't exist. Branding settled for 1.9M from the CN, that's a pittance compared to what it will cost to truly mitigate the repercussions of the CN buy of the EJ&E just ask Barrington. If you really understand the staff salary savings it's from not replacing retirees and reducing the job from a Director to a Manager. Suzanne actually inflated the administration with the addition of an Asst. Village Mgr., and Asst. Fin Dir. A town our size doesn't need all this administration so she's added red tape, not reduced it. And Mariano's was supposed to open in early 2013, now because of the Village the target is 2014. They are known for their ability to have a store up and running quickly. LZ is hurting their track record. So...please educate yourself or move to another part of the Village rather than the private lake so you can get a better view of what's really going on.
Joe K March 22, 2013 at 06:42 pm
I was commenting how Poynton takes credit for improving the budget process which if I am not mistaken is a staff function. So if he can step up there they why not an RFQ RFP process that was agreed to be followed by the board last fall? After the ESG fiasco that tied up development for almost 20 months, making sure a developer is qualified should be of primary importance before listening to their story. Remember ESG had a great story - no substance, but a good story. BTW, if a budget isn't approved on time it is a SHARED failure.
Joe K March 22, 2013 at 06:42 pm
Well stated Helen.
Joe K March 22, 2013 at 06:48 pm
And as a board you do nothing about it an complain! I have seen the board move on items and then sit on their hands and complain. I'll bet that is why the Daily Herald did the endorsed Branding. The board's inaction and blame are visible to all. As they said so eloquently: "Branding can point to notable achievements as mayor and has earned another term to move her ideas forward." I guess the Boards were to stealthy for the Herald to see... NOT, they are missing!
Joe K March 22, 2013 at 06:51 pm
And to be absolutely clear, these comments are not directed in any way toward Bruegelman. I offer no opinion about his qualification or ideas. It's just in my view, qualifications should come first. The village has been burned before, and it seems the only one who would like to proceed with some degree of care is Branding. If the board wanted in RFQ process it would have been finished long ago.
Frustramagated March 22, 2013 at 09:49 pm
Joe,
The board has been asking for "something - almost anything" from the mayor and administration. They get nothing!!
Resident Observer March 22, 2013 at 11:39 pm
Actually Branding did one thing - she illegally brokered development of what she calls "Celebration Park" which should have been called "Dave's Park." Oh, and the Board authorized it not to exceed 10k and yet she spent 17k.
D&J Bistro March 23, 2013 at 12:24 am
From a local business owner.....these back and forth accusations and finger pointing sessions are shamefull, really! no need to go any further to understand why nothing is happening in the downtown of LZ; with such display of distrust, how could anything be accomplished? yet, our "downtown" remains a sad example of dirty political games, of egos coming in the way of reason..etc..or is it from a lack of vision?....please, ladies and gentlemen (using the term loosely!) leave your pride and/or your complexes of superiority or inferiority behind you and get to work for the good of the village, its residents, its businesses, but not for your own agenda, whatever that may be. You were elected, now prove to us you were the right choices, each of you individually and, more important, as responsible administration. Thank you.
P. St. Helen March 23, 2013 at 06:51 pm
Kudos to D & J Bistro. You are correct and what is going on is shameful...No more!
P.S. Who taught Harold the Squirrel to type? And why don't people use their real names? I guess this is why you have to be careful what you read on the internet.
Rich Sustich March 23, 2013 at 08:01 pm
Let's be clear. A major reason I am not running for reelection is the depths to which the slate President Branding endorsed 2 years ago ran their campaign, even accusing me of doing the "Jedi Mind Meld," (thanks President Obama) controlling all the Board members against her. It was on their website but I don't know if it's accessible anymore. Far more importantly is the residents' need to understand what she has planned for when the TIF debt balloon explodes. The following are notes from a conversation between President Branding and me on 8/24/12:
She said the money to pay off the TIF debt won't come from the TIF. She said she calculated that she compared Concord to Cukeilman's proposal and we would need to build 6 buildings like his proposal and she just doesn't see it. She said that she has heard residents want more community space / public space and she agrees. Developers want only to build apartments. She repeated residents want more open space, maybe a small bar or tavern, whatever. We could go with a developer or a single property owner. I said I still preferred we make the TIF self-sustaining. She said "I don't see how it can be." I asked her what was the alternative. She said she could see the money coming from outside the TIF, from property taxes or sales tax or something, or it could come from the General Fund and the Village could cut services. She also said the Village could get grants or something outside the TIF and free up money for the TIF.
Rich Sustich March 23, 2013 at 08:15 pm
(Continuing) In a telephone conversation on 2/7/13 with representatives from our water advisors (Chicago Metropolitan Agency for Planning, Metropolitan Planning Council, Center for Neighborhood Technology and USEPA), President Branding clearly stated that there are no plans for residential development in the downtown area. By the way, I strongly encourage everyone to attend the USEPA Building Blocks program workshop that will be held on March 29 at 10:00 AM at the LZ Police Station, 200 Mohawk Trail. THIS IS AN IMPORTANT DISCUSSION ABOUT DOWNTOWN DEVELOPMENT AND ITS IMPACT ON OUR WATER INFRASTRUCTURE----PLEASE ATTEND!
JFall March 23, 2013 at 10:19 pm
Learning this information is a little concerning to say the least. Assuming my understanding is correct, the TIF district was created as a mixed-use area; this implies both residential and commercial development. To hear that Branding is completely against residential development downtown and is already planning to pull cash from other areas to cover our TIF burden is crazy. Last I checked, her specialty is in gardening, not in making semi-secret, insular economic decisions without input from experts that have real potential to increase the financial burden on residents of LZ.
"She calculated...that we would need to build 6 buildings..." Yeah, I get a sneaking suspicion that it would be in all of our best interests to give that spreadsheet a once-over...
Sam March 24, 2013 at 03:47 am
P. St. Helen - You make an interesting statement that people should use their real name. Strange how this name doesn't exist anywhere in IL. I guess you really have to be careful what you read on the internet....
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors. Write a new post... What's up? Make an announcement, speak your mind, or sell something
Lake Zurich Area Farmers Market June 19, 2013 at 01:50 pm
Jim, we're sorry if you had trouble getting to the Paulus lot. Additional parking was availableRead More across the street in the former Kmart lot. We've been working with the police to make sure people know where they can park if the Pualus lot is full, and we're getting some signs to direct people to the alternate parking. Please come back and give us a try!
Jane Reents & NSQG 2013 Raffle Quilt.
Tea drinker June 4, 2013 at 06:56 am
Any pictures available? I'd love to see the quilts.
Jayne Borgelt June 12, 2013 at 09:01 am
You are referring to her Paducah quilts? I will ask Jane. Thank you for your interest!
Jayne Borgelt June 14, 2013 at 06:17 am
Jane Reent's Paducah entry quilts may been seen at:Read More http://lakezurich.patch.com/groups/announcements/p/an--wauconda-quilter-takes-on-the-paducah-quilt-show-65f7cdf95b
Cats&Hogs June 4, 2013 at 05:45 pm
Wow, this story really shows how selfish some people are now. The person who complained to theRead More police better hope he/she never needs any help or compassion from anyone or any organization. They don't deserve it. You were trying to have a great event and some hater couldn't put earplugs in their ears for one night of their life if they didn't like the noise. So sad. Way to go for your efforts though! Bob