ROCHELLE — Rochelle City Council will be returning to the drawing board in an effort to sell a city-owned downtown building eyed by a local developer.

Walter Wayne Development, LLC recently approached city officials requesting an option to purchase the property located at 413 W. Fourth Ave. In his address to council, Dave Diamond from Walter Wayne Development indicated Storybook Gardens owner Jana Gruben would like to expand her business, ultimately utilizing the downtown building.

What was originally going to be an option to purchase the property in order to inspect for structure viability followed with a possible offer has now changed. Rochelle City Council members agreed to restructure the agreement to include a purchase price. It would be up to the developer to request an option to buy based on that purchase price, which typically would include a contingency based on further inspection.

Diamond explained his intent would be to redevelop the space to include offices as well as a functioning second location for the wedding and banquet business owned by Gruben.

“I think [Gruben] has a great business, it’s a very solid platform she’s on. She wants to include some things downtown. I’m simply a developer just trying to make that happen and provide the resources she needs to get that done…she’s got her own set of resources she brings equal to mine,” Diamond said.

Gruben approached council in recent months inquiring about the building, but no plan to sell had been discussed at the time. Diamond stated the project, if it came to fruition, could eventually help the downtown revitalization.

“Between what I would bring and what Jana would do would be pretty significant to the downtown in terms of the number of people that would be there on weekends and wanting to be entertained and socialize downtown,” Diamond said. “I don’t think it’s a matter of looking at a quick sale on this, I think what we bring to the table is a project that could bring a lot of value to the table.”

After the meeting, Rochelle Mayor Chet Olson said city staff intends to work with the developer to restructure the agreement. The new agreement would drastically reduce the timeframe compared to the original one that was reached that included optional extension periods that could have lasted for nine months.

Councilman John Bearrows questioned the original agreement stating it could have kept the process going longer than necessary.

“In my opinion the key is to get that building in the hands of the public and get it back on the tax rolls,” Bearrows said. “We don’t need to be property owners.”

If an agreement is reached and the developer expresses a desire to purchase the building, the city would have to provide a notice to the public in order to give anyone the option to submit a bid.

Change of plans

The three-story building located on the corner of Lincoln Highway was purchased over two years ago with the former Hub Theater as part of a development deal with a Florida-based business owner. Shortly thereafter, the deal fell through and the city was left with the buildings. Since then the former theater has been purchased and is now being converted to a distillery.

During that transaction the city included the three-story structure, which is located at the corner of Lincoln Highway and Fourth Avenue, into a TIF district.