Village Weighs Debt Alternatives for Downtown Property

The is looking to refinance its debt on the 611 Green Bay Rd. property they purchased after taking out a line of credit from North Shore Community Bank in early March.

“When we purchased the property, the discussion at that point in time was that we would likely issue debt later this year.” Village Finance Director Bob Amoruso said during a.

Earlier:

“If we were to issue that debt [as the village originally intended],” Amoruso added, “we estimate it would be about $175,000 a year in interest costs...”

The village bought the property for $3.675 million in March. In doing so, the village , investing in certificates of deposit at the bank with an interest rate of .6 percent. The bank agreed to provide credit to the village at a rate of 1.1 percent, which they've been paying off annually.

Meanwhile a new refinancing contract, that will save the village roughly $115,000 annually, must be drawn up by Nov. 1. The agreement must be created because: (1) The original contract with the bank expires, and (2) the village must pay its bills, roughly $4 million in operating expenses, by December.

Moreover, Amoruso suggested that the village borrow locally to pay off the debt. Officials would prefer to do so from the bank by using the property as collateral, much like a home owner would when mortgaging their house. If signed in November, the contract will stand until March 2012, when the village will refinance as they did when .

“This has proven to be exceptionally attractive because it allows us flexibility,” Amoruso said.

Any contracts with the bank are moot, however, if and when the village sells the property. Several developers have already expressed interest in the land, said Village Manager Timothy J. Frenzer.

“We'll resell it to a qualified developer that will make [the property] consistent with the,” Frenzer said. “We will [also] be looking for a reasonable and fair price for the property.”

Previous property owner Mitch Miller had been given the go-ahead in 2007 to build a mixed-use building at the location, but plans fell through when the desired number of units weren't sold. Miller then came to Village trustees in 2009 with a plan to construct a building that would have incorporated three stories for a CVS and offices. When the village denied Miller's proposal to build drive-through pharmacy, he sued Wilmette. The village evenutally bought the property.*

The village hopes to use the space as a multi-story, mixed-use* development that incorporates a retail store on the bottom and either a residential or office area on the top.

*An original version of this article incorrectly indicated that Miller and the Village had ended up in litigation.

*An original version of this article incorrectly said the village planned to develop a two-story building on the land.