Taxman, Antunovich Win Edgewater Retail Site

The sale of the property at the southeast corner of Bryn Mawr and Winthrop avenues, acquired by the city for approximately $1.2 million, was recommended for approval by the community development commission Tuesday for $200,000, the minimum set in the department of planning and development's request for proposals.

Both ATA and its competition, a partnership between Holsten and the non-profit Edgewater Development Corp., sought the bargain-basement purchase price for the 15,000-sf, one-story building. However, ATA's $2.11-million redevelopment proposal requires no other city subsidy, while Holsten's $4.43-million project sought $2.46 million in money from the tax increment financing fund.

While the bottom line ruled the day with the community development commission, the costlier plan won support from the Edgewater neighborhood on the city's North Side by a two-to-one margin during a recent meeting attended by more than 400 residents.

"The proposals were nearly identical," says department of planning and development project manager Don Hoenadel. "The glaring difference was funding."

The difference in costs, Taxman says, is the co-developers are eating fees such as architectural, engineering and leasing, and may even serve as general contractors.

ATA amended its plans to match the design of Holsten's proposal to return the building to its 1930's Art Moderne style, as well as beginning negotiations with the same tenant—Transitions Book Store, based in the Lincoln Park neighborhood. Taxman says there is a "meeting of the minds" on a lease with Transitions, which in addition to books, offers a sit-down restaurant, yoga and spirituality classes, as well as reading groups.

While the redevelopment of the Bryn Mawr and Belle Shore hotels—described as "Stateville North" in their earlier states--were a combined $17 million, Taxman also has focused on larger projects in a city and suburban portfolio of 2 million sf, usually involving national retail chains. However, he and Antunovich are personal invested in their Edgewater pet project.

"This is a very important project for us," says Taxman, also involved in moving the Skokie Swift CTA station. "This project, I've looked at for many, many years."

Negotiations with the previous owner were unsuccessful, however.

"I've driven by this building many, many times and lamented the fact that it is vacant," adds Antunovich, a former neighborhood resident.

When Taxman sought Antunovich's architectural services, the latter instead insisted on being a 50/50 partner. They are tapping personal lines of credit, but have heard from Cohen Financial, LaSalle National Bank and Cole Taylor Bank.

If there are cost overruns, it is the partnership that will be likely on the hook, as they pledged not to return to the commission to seek TIF money. "If we need more money, we'll go back into our own pockets," Taxman says.

In addition, officials from Edgewater Development Corp. and other neighborhood groups asked the commission to hold ATA's feet to the fire on tenant selection, quality of the building and other local issues.