Commissioners for the Park District of La Grange last Thursday authorized the solicitation of bids for the construction of the first phase of its long-promised renovation of Gordon Park.
But commissioners tabled a vote to approve a $2.2 million construction budget for the first-phase work, relenting to concerns expressed by Bob Ashby, the park board's vice president, that the district has not secured adequate funding for the project.
"No way, shape or form do we have $2.2 million," Ashby said, who chairs the board's finance committee.
Dean Bissias, the park district's executive director, agreed, telling the board that $1.5 million might be available.
"I think $1.5 million is pretty far out there," Ashby responded.
"It's going to stretch the funds, no doubt about it," Bissias said.
Money these days apparently is tight for the park district, at least more so than in Nov. 2008, when commissioners initially approved a renovation budget for Gordon Park totaling more than $4.5 million.
At the time, they were counting on receiving some $6.5 million in cash and in-kind services from Atlantic Realty Partners (ARP) in exchange for selling the developer 2.82 acres of Gordon Park adjoining the former Rich Port YMCA site. ARP planned to redevelop both parcels with a major residential and commercial project, known as La Grange Place.
Both ARP's project and the renovation plans for Gordon Park appeared to have a distinct green light as district voters that November authorized the parkland sale in a public referendum by a margin of 55 to 45 percent.
But the park district also was embroiled in series of lawsuits brought by various residents who opposed selling any parkland. The legal battle still continues today, going on nearly three years.
In the meantime, the collapse of the real estate market forced ARP to dramatically scale back its plans for La Grange Place, and the price it would pay for the parkland, once and if the park district prevails in court.
The park district's claim that it has spent approximately $400,000 in legal costs battling the residents was raised on more than one occasion as commissioners wrestled with figures Thursday night.
Tim Kelpsas, president of the park board, said he had hoped the lawsuits would be resolved by that night's meeting. A trial in the hearing of the park district's latest petition had appeared likely to occur last month before Cook County Circuit Judge Susan Fox Gillis.
"The reason it [did] not is because the objectors continue to file delay after delay after delay," Kelpsas said.
In fact, while attorneys for the park district have often accused the residents' attorneys of delay tactics, the court has never acted on those complaints.
More important, the residents won the first two rounds in court.
In the current third round, a trial anticipated last month was postponed when the residents' attorneys filed a motion asking Judge Gillis to clarify the legal standards she would use in conducting the trial. Instead of objecting to the motion, the park district's attorneys actually supported it.
A hearing scheduled for Aug. 4, at which Gillis was expected to respond to that motion, was postponed until Aug. 27 at the judge's request. In the meantime, the lead attorneys for both sides are out of town on vacation.
Despite the uncertain outcome of their legal situation, the commissioners said they are compelled to move forward with the renovation plans for the west side of Gordon Park.
Earlier this year, the park district was awarded a $400,000 grant from the Illinois Department of Natural Resources through its Open Space Land Acquisition & Development program—called OSLAD for short.
The grant money can be used only for the specific reasons it was requested: recreational amenities that are integral to the first-phase renovation of Gordon Park. These include a fenced and lighted soccer field, a splash pad, skating spot, butterfly garden and fitness stations along a walking path.
OSLAD only awards matching grants paid as reimbursements, so the park
district must spend at least $800,000 before it can claim the $400,000 grant.
"Is it worth spending $1.3 million to get $400,000?" Ashby asked his
fellow commissioners.
Combined, those two figures equal $1.7 million, significantly short of the $2.2 million budget the board was considering. But from among the many figures flying around the room that night, a consensus appeared to form around $1.7 million, give or take a little, as the project's low-end cost.
Achieving that goal could include trimming back some the planned amenities, said Dave Olson, co-president of W.B. Olson & Co of Northbrook, the firm that will manage the renovation construction. But nothing specifically mentioned in the OSLAD grant can be eliminated entirely.
Among the possible cuts already suggested in the budget document provided to commissioners was eliminating the water heater and recirculation system for the splash pad.
That would deliver an upfront savings of $108,000, said Jeff Braun, president of Cody Braun, the firm hired to handle the renovation planning and design.
But there also are backside costs in such a move, he said, and not just because children would have to play in chilly water. Not recirculating the water means the splash pad would use an estimated 500,000 gallons a month from municipal supplies at an approximate cost of $12,000 a year.
Any significant reduction in the renovation costs are likely to come from the competitive bidding process, Olson said. Sub-contractors, anxious to secure good projects in a bad economy are likely to submit bids lower than usual.
"We are seeing 10 percent [reductions]," Olson said.
"How good are you at negotiating those bids?" Kelpsas asked.
Olson explained to Kelpsas that negotiation is not allowed in a competitive bidding scenario.
Was it OK to solicit bids without first approving a construction budget? one commissioner asked. That way the board could get better handle on the costs before committing to a budget.
"It wouldn't be the first time," Braun assured them.
Bissias said he would explore opportunities to obtain funding through additional grants, perhaps even a second one from OSLAD.
At one point, Kelpsas looked out at the audience members, who had sat patiently during the discussion, which lasted more than hour.
"Don't think we don't want to do this," he told them. "We really do. We've just got to find the money."
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