Rochelle City Council members seem pleased to see builder Bruce Seldal putting up much-needed town home complexes on east Seventh Avenue, but budget deficit concerns outweighed the benefits when it came to allowing a break in sewer hook-up fees for the developer.
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ROCHELLE — Rochelle City Council members seem pleased to see builder Bruce Seldal putting up much-needed town home complexes on east Seventh Avenue, but budget deficit concerns outweighed the benefits when it came to allowing a break in sewer hook-up fees for the developer.
Seldal, who asked for a $10,800 reduction or 90 percent off of the estimated $12,000 cost, purchased four parcels of land along the 100 block of Seventh Avenue and plans to begin building two 10-unit townhouse buildings that will include units of approximately 1,100 square feet each.
“The reason I’m looking for a break is that I’ve already spent a tremendous amount of time and money getting the engineering done,” Seldal explained on Monday night during the regular Rochelle City Council meeting. “I’m the third owner of this property and it’s never been developed up until now.”
Seldal pointed out that the property will also be included in the city’s Tax Increment Financing (TIF) district footprint that will generate funding for future development projects.
“Some of the things I’ve heard about this project are off key,” Seldal added. “This is not Section 8 or low income housing. They will be 1,100 square feet units and rent out between $700 to $800 per month.”
Councilman John Bearrows said that while he is not against the project, he is concerned about the city’s finances and setting a precedence for future developments.
“We have a budget problem and we have to make some tough decisions and changes in the next few months,” Bearrows began. “I’m not exactly in favor of giving this break and I’ve told Bruce that, but I’d rather consider allowing him to pay a portion up front and then pay the rest over time after he starts renting out units.”
“I’m not saying giving this break is how we should go, but we don’t have enough nice, affordable housing for young people in their late 20s who have a job and want to live here,” she stated. “I’d like to ask if the hook-up fees could be deferred until the rentals start coming in?”
“We don’t have a history of doing it,” responded city building inspector Kip Countryman.
Councilman Tom McDermott said he is not inclined to grant breaks and variances and would rather take a harder look at the pricing levels.
“We set fees and permit charges based on our costs and if they are too high, then we should lower them,” he said. “We keep setting these fees and then keep giving variances. If someone wants a variance, then they have to show me good reasons why and how else the city is benefitting in order to do it.”
In addition to being in the TIF district, Seldal said he has given easements to the city and since there already is some sewer infrastructure on the property the development won’t be as extensive.
“You’ve got a sewer line already on the property, so you won’t have the same work as a totally undeveloped project or even have to open up the road,” he argued. “You say that the Rochelle sewer system is under utilized, but then when a housing development comes in you charge these exorbitant amounts which doesn’t make sense to me.”