A mixed-use project with a 2,700-seat theater and 130-foot condo buildings proposed for a site near downtown Naperville’s Metra station was shot down this week by the Naperville City Council.
The council voted unanimously Tuesday night to end further investigation of the Omnia Arts Center proposal, an idea put forth by a Naperville nonprofit group and discussed informally for several years. But council members suggested the group consider a scaled-back project that is privately financed. The project’s size and its reliance on city financial support were two reasons council members gave for rejecting the plan.
“I have no issue with the theater and the multi-use development [idea],” said Councilman Kenn Miller. “But in this particular area of 5th Avenue, I don’t think 12-story to 14-story condos or 130-foot buildings are what is needed.”
Although Omnia never formally submitted a zoning application for the project, city officials felt a vote was necessary because much of the proposal involved city-owned land, and its organizers wanted the city to sell $130 million in bonds, likely through a tax increment financing district, to help pay for the work.
In addition, Naperville has been in the midst of a study of the entire 5th Avenue corridor near the Metra station, and the City Council wanted to issue a formal opinion of the Omnia concept as it considers how to redevelop city-owned land.
The centerpiece of Omnia’s plan was a performing arts complex with three theaters — one seating 2,700 and the others seating 950 and 200 — and 25,700 square feet of stores on what now is the Burlington surface parking lot.
A parking deck and another 331 condominium units were planned for the lot and a privately owned parcel that the city unsuccessfully attempted to acquire several years ago. In addition, 200 condos would have been built on the Water Tower West site and at least 12 more town homes and 12 new single-family houses would be constructed along with 840 Metra parking spaces and a new bus depot .
“The Omnia plan will be an income producer, not a tax user,” said supporter Ronald Hoering. “It has so many … benefits for the community that we urge the council to allow staff and Omnia to work together to come up with a plan that is the best use of the land.”
But council members and many neighborhood residents questioned the financial viability of the project. In a tax increment financing district, property tax payments to local governments are frozen for up to 23 years, and new taxes generated by rising property values are reinvested to promote more development. City staff noted in a memo that if the TIF revenue is lower than expected and cannot cover the project’s debt, the city would be on the hook.
“If you have that much interest in [this project] with investors, why haven’t you looked at that route?” said Councilman Paul Hinterlong. “The only thing that comes to mind is risk. If they’re not able to do that, how would we be able to burden our taxpayers with that risk?”
Omnia representatives, however, unsuccessfully urged officials not to reject consideration of the idea until exploring it further.
“We don’t think the council can make an intelligent decision tonight until they understand all the facts, said Omnia President Bev Patterson Frier. “It has never been Omnia’s intent to burden the taxpayers with the Omnia plan. We are taxpayers, too, and we don’t want a bailout more than anyone else does.”
Despite the rejection, most council members urged Omnia to continue to go through a formal bidding and zoning process if it still is interested in redeveloping some of the parcels in the 5th Avenue area, particularly if Omnia is able to secure private financing. And several council members said they are open to a scaled-back plan.
“I wish that Omnia would not go away … thinking that there isn’t some openness to a scaled-back solution, because for me, there would be,” said Councilman Robert Fieseler.
