Nov 16, 2023

Subsidy OK'd By Western Springs Panel

WESTERN SPRINGS, IL – A developer's request to get a subsidy for his downtown Western Springs condo project cleared a hurdle Monday. The village said nearly $1 million in project costs are eligible.

After a 20-minute presentation, the village's Economic Development Commission unanimously recommended public money for a four-story condo building at 514 Hillgrove Ave., a project that started last fall. The money is to come from a tax increment financing district, or TIF.

According to the resolution approved by the commission, $971,000 in costs are eligible for the subsidy.

Hinsdale-based KLM Development, owned by Felix Lampariello, had originally sought $1.5 million for the more than $8 million project. Part of the money was for the land purchase. But under state law, that portion was ineligible for the subsidy because the purchase was a year before the 2019 creation of the tax district.

Under the plan, KLM will be reimbursed for the eligible expenses from the higher tax collections that are expected as a result of the property's increased value.

Felix Lampariello, owner of Hinsdale-based KLM Development, attends the meeting of the Western Springs Economic Development Commission on Monday. (David Giuliani/Patch)

During the meeting, Lampariello said he needed the money to get the necessary financing from Lakeside Bank. Patch has obtained public records demonstrating Lakeside's request.

Village attorney Michael Jurusik explained how the agreement with the developer would protect Western Springs.

"The village isn't in the real estate game. We are not investors. That's not our role," he said.

With little discussion, the commission recommended the village go ahead with the assistance.

The matter next goes to the Village Board's Finance Committee, which is expected to recommend a dollar amount. Then the full board decides.

KLM submitted its original application for village assistance in 2021. It hopes to complete the project by the end of 2023.

The project is set to include commercial space and 10 condos. According to the developer, the condos will range in price from $650,000 to $1.4 million. The building will be called The Hill.

The idea behind a tax increment financing district is that the money spurs development, which will bring more taxes to local government bodies in the long run.

In a November email to local officials, Lampariello said he has been repeatedly assured that he would get TIF help from the village.

A building that is set to include commercial space and 10 condos is under construction at 514 Hillgrove Ave. in Western Springs. The developer is seeking a village subsidy. (David Giuliani/Patch)

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