Redevelopment gets OK despite criticism

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Updated: March 3, 2012 8:23AM

Harwood Heights Mayor Arlene Jezierny called police to Village Hall after some residents, who packed the Jan. 26 Village Board meeting, responded with outrage and disappointment after Jezierny cast the tie-breaking vote for a redevelopment agreement with Bradford Real Estates Cos.

One by one, residents approached the podium and spoke against moving forward with Bradford’s proposal to build a Mariano’s Fresh Market store in Harwood Heights, citing increased traffic, the potentially negative impact on small businesses in the area, the alleged lack of need for another grocery store and the $800 million debt carried by Mariano’s parent company, Roundy’s Supermarkets Inc.

“I don’t understand the logic behind Harwood Heights taking out a $4 million loan,” Anita Groll said.

Jezierny, at a previous meeting, said she has seen Mariano’s financial information but that any trustee wanting to view the information must sign a confidentiality agreement.

As of Jan. 26, none of the trustees had a signed confidentiality agreement to view Mariano’s finances.

A Jan. 25 Bloomberg Business Week article reported Roundy’s is seeking $800 million in loans to refinance its debt.

Asked if she was aware Roundy’s is seeking the loans, the mayor said, “Mariano’s is a high-quality, well-respected, longtime player in the grocery business. We have no doubts a Mariano’s will help move Harwood Heights forward toward an improved economic environment. Isolated comments taken out of context will not deter the village from pursuing economic development. Mariano’s has been welcomed by Vernon Hills, Arlington Heights, Palatine and Chicago and is expanding throughout the (Chicago) area. These communities know how valuable a Mariano’s can be to their economic health. Harwood Heights is attempting to do the same.”

According to Jezierny, the redevelopment agreement with Bradford does not bind the village to an agreement to purchase the Tarson property (approximately 2 acres) at 4700 N. Oketo Ave. but allows the village to seek a $4 million loan to purchase the $3.8 million property, which the village will in turn sell to Bradford for $100.

Bradford plans to purchase the attached vacant Tornado property (approximately 4 acres), the other parcel of land needed to build the Mariano’s supermarket, for $3.4 million.

Peter Magnelli, who serves on the board of the Eisenhower Public Library at Oketo and Wilson avenues, said the huge turnout of residents shows the level of concern, and he’s not sure why the Tarson property is more than the asking price of the Tornado property, which is a bigger lot.

“Roundy’s is $800 million is the hole. I’m not sure how they plan to finance this,” Magnelli said.

The vote was 4-3 with Trustees Michael Gadzinski, Larry Steiner and Therese Schuepfer voting for the agreement while Trustees Mark Dobrzycki, Lester Szlendak and Demetrios Mougolias voted against the agreement.

Prior to the vote, Mougolias told the audience that trustees are there to do what residents ask of them.

Asked if she was concerned that her tie-breaking vote in favor of the redevelopment agreement would hurt her re-election, Jezierny said, “Harwood Heights has over 4,000 registered voters. These voters have selected and approved the job this administration has been doing. We were elected to represent the best interests of the community. While we are always pleased to see attendance at board meetings, it is the board’s duty to investigate and pursue what is best for the village. Some people run political campaigns against whatever the established administration is supporting. That appears to be what is happening here. Some people play to the crowd. Our administration works for the people.”

Mougolias revealed at the Jan. 24, Village Board committee meeting that he is considering running for mayor.

Tempers flared during that meeting as well with Village Clerk Marcia Pollowy, who’s usually quiet during meetings, and an audience member criticizing each other.

Dobrzycki questioned why the village would purchase the property from the owner, rather than lease it.

Mougolias questioned whether the current police staff could handle the possible increase in crime.

“How can we say this project makes sense for the town?” Mougolias said. “It only makes sense for the developer. I don’t think the residents should bear this risk. I don’t know who negotiated on behalf of this town. I don’t like it and I won’t stand for it.”

Mougolias told residents the fight to prevent the Mariano’s project from happening is not over and encouraged residents to attend the next meeting.

“Even if I have to use my own money, I will get a judge to stop to this,” Mougolias said.

Szlendak also said Roundy’s finances could make the financial burden to repay the loan ultimately belong to the residents.

The board also approved Dan Denys of Austin Meade Financial Ltd. as financial consultant for services toward acquisition of the Tarson property.

Several ordinances for the project were also approved.