An attempt to oust Walsh Partners as developer of retail space in downtown Elmhurst has failed on a 7-5 vote of the City Council.
The act Monday night left Walsh Partners as the authorized developer of three stores on the first floor of the new Schiller Street parking deck.
The stores are to be another step in the revitalization of the central business area, where Walsh Partners has already built a police station and 90- unit apartment building, has begun work on a new City Hall and plans a 20-unit apartment facility for elderly people.
Some officials said the developer missed deadlines for renting the space. Ald. Donald F. Olson (6th) moved that Walsh be removed as the developer, saying the company was ”way over its head” and had ”let us down with questionable retail outlets.”
Charles H. Walsh Sr., one of the partners, said he has met or exceeded all requirements.
He said the three tenants he had signed up from a list of prospective renters would produce large amounts of sales and real estate taxes for the city`s tax increment financing district, the linchpin of funding for the downtown work. New and increased sales and property taxes are diverted to pay for public portions of the downtown work.
Walsh said he had lined up someone to open a gift shop in the new space, that optometrist William B. Brand will move there from 333 W. 1st St., and that a Mexican restaurant will be operated there by the owners of Tortilla Flats, 112 N. York St.
Ald. Norman T. Reinertsen (1st) said Walsh didn`t produce ”the upscale shops” the city had hoped to secure for the newly created downtown retail space.
Walsh, addressing the council, asked for ”fair treatment” and said a city aide had negotiated behind his back with another developer over the retail space, even though the council had made Walsh Partners the sole developer.
Jerry Ruby, a merchant and spokesman for the Elmhurst Chamber of Commerce, said Walsh hadn`t been aggressive enough in bring in new businesses and getting the proper retail mix to complement existing shops.
Ruby said downtown already had eight optical shops and a number of restaurants.
Walsh said restaurants ranked second only to women`s clothing shops in occupancy of space in community shopping centers in the United States.
