Public Watchdog.org

Mr. K’s Should Not Get A Special-K Deal

05.24.17

For years various developers reportedly have sought to acquire the Mr. K’s Garden and Material Center at 1440 Higgins for commercial development. And for years the owner apparently has said “no.” Or his asking price was too high to make development feasible.

But suddenly a developer wants to stick 34 townhouses on that 2.19-acre parcel and the owner sounds willing to say “yes” – even though the site is zoned “B-2 Commercial” and the City of Park Ridge’s “Higgins Road Corridor Plan” (the”Plan”) identifies that site as one of the City’s last prime office/commercial properties.

At least a couple of the members of the City’s Planning & Zoning Commission (“P&Z”) appear to be taking the site’s B-2 zoning and Plan status seriously. According to a recent article in the Park Ridge Herald-Advocate (“Developer shares plan for townhouses on site of Park Ridge landscaping business,” May 14), Commissioners John Bennett and Jim Argionis criticized the idea of multi-family residential on that site – with Bennett suggesting a low-rise hotel might be a worthwhile goal and Argionis saying that the space “screams commercial.”

Indeed it does.

And two of Park Ridge’s unofficial zoning and land-use mavens, Pat Livensparger and Missy Langan, warned of the effect of more multi-family residential on Park Ridge schools, a concern echoed by new 3d Ward Ald. Gail Wilkening.

Back in our 09.12.13 post about the Trammel Crow development just east of Whole Foods, we pointed out how almost every multi-family residential project in Park Ridge is an overall money-loser for Park Ridge taxpayers IF they house children who will be attending our public schools. Just one public school student per residence eats up double or even triple that portion of the average RE tax bill paid to either Park Ridge-Niles School District 64 or Maine Twp. High School District 207.

Trammel Crow persuaded the City to permit that 116-unit rental project on the basis that it was designed for individuals and younger couples, not people with school-aged children. And if we recall correctly, Trammel Crow’s project was a “planned development” that did not require re-zoning, just some density relief which it obtained by offering not only to retain all of its own run-off water but, also, to double the size of the City’s adjacent water detention basin.

We have not heard whether the actual demographics of that project have matched the no-schoolkids sales pitch, although we would expect that somebody at D-64 or D-207 would have said something by now if they didn’t.

But for the past 20 years or so, residential development has been the lowest-hanging fruit in Park Ridge. In part, that’s because the risk to developers of residential is minimal and short-term – as opposed to the greater, more long-term risk of commercial development.

And the cash-strapped City has too often been lured by the Sirens’ song of more property tax revenue coming from residential developers, and also from the City’s real estate brokerage community that understands how there will be far more profit-making opportunities from 34 townhouses – that may flip owners every 5-10 years – than in 1 or 2 commercial/office structures that may flip every 10-20 years, if that.

In addition to the re-zoning needed for the Mr. K’s townhouses, the H-A reports that the project would require a 3-townhouse variance from the City’s density requirement, a height variance, and variances for front and rear yard setbacks. In other words, the developer wants to create a sardine-can subdivision and needs a lot of City help to pack the can.

The main reason for shoehorning that many townhouses onto that site? “The cost of the site is very high,” said the project’s architect, Guido Neri.

Bingo! Mr. K’s owners want to cash out at a top-shelf price, and the developers want to maximize their profits.

There’s nothing inherently wrong with that.

But the City, a/k/a the taxpayers, don’t owe Mr. K’s owner(s) or any developer a zoning change, a basket of variances, or windfall profits – especially if it means losing one of the last significant commercial parcels in Park Ridge. That neighborhood has accommodated Mr. K’s for decades, and it can continue to do so while the owner decides whether a lower sales price might entice some commercial development instead of simply pandering to the low-hanging residential fruit pickers.

After all, a lower sales price usually beats no sale at all. And once that commercial site is lost to residential development, it’s gone for good.

Meanwhile, we have yet to hear a persuasive, or even rational, elevator-pitch for adding to Park Ridge’s population, especially if it includes more public school students and further exacerbates the already-onerous tax burdens from D-64 and D-207.

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