Despite additional meetings
with LZ Promenade to gather more information about its proposed downtown Lake
Zurich development, village staff is not sold on the idea.
LZ Promenade is on the agenda for this week’s Board of Trustees meeting. but village staff in not making a positive recommendation for the plan, according to staff reports.
Lake Zurich’s staff had found numerous problems with the proposal last month, however the board decided to meet with developer John Breugelmans to gather more information about the project. Village President Tom Poynton and staff met with Breugelmans since he last appeared before the board.
What continues to be at issue is LZ Promenade’s request to purchase the downtown land, Block A, from Lake Zuirch for $10, translating to a $3.5 million loss for the village, according to village documents.
Additionally, LZ Promenade wants all permit fees waived. Lake Zurich would lose about $832,000 in permit fees and would have to reimburse other agencies (like Lake County) $355,646 in waived fees for the project, officials said.
Staff is also raising concerns about how much sales tax the project would generate for Lake Zurich. For example, LZ Promenade will search for a hair salon and day salon to fill some of the office space it will build and estimated a business like that would generate $31,200 a year. But, staff pointed out that salon services, like haircuts, can’t be taxed. Staff estimates such a business would generate $1,500 to $3,250 in sales taxes a year.
While Lake Zurich will have to provide some incentives, there may be other projects that would not cost the village as much, according to staff reports.
Trustees have two options, either move ahead with the project and begin working on a Redevelopment Agreement with LZ Promenade or start asking for new proposals.
The village board meets at 7 p.m. Monday, at village hall, 70 East Main St.