A resolution authored by Council President Mark Schocke, R-3rd, as well as an amendment to the agreement offered later in Monday’s Town Council meeting, failed on a 2-2 vote, with Council Vice President Bernie Zemen, D-1st, absent and Clerk-Treasurer Michael Griffin declining to break the tie.
The resolution sought to cancel an agreement among the town; S.J. Highland LLC, which owns the 19 acres north of the Strack and Van Til grocery; Griffland Center Inc., the grocery store property’s controlling entity; and Davenport, Iowa-based developer Russell Group that set forth some contingencies each entity would need and complete for the entire project to go forward.
The October agreement, according to Schocke’s resolution, should’ve been canceled because the Russell Group hadn’t refiled any necessary applications “in a timely manner,” therefore leaving the project in default. Addressing the council and a fairly crowded Town Hall during the first of its public comment periods, the developer’s attorney, James Wieser, said two applications – one for amending the property’s zoning and the other making the property a subdivision – were submitted Tuesday, rendering Schocke’s resolution moot.
The October agreement also stated that constructing a fully improved road out of the space between the Strack’s building and the land known as Ernie Strack Drive was a precondition the Plan Commission brought forth, Wieser said, and “the rights of the developer, Griffland and town parties under this agreement shall inure to the developer, Griffland and the town parties respectively, and upon their respective successors and permitted assigns.”
“You’re bound by this agreement; you’re a respective successor. You may not like it, you may not be happy about it, but you’re bound by it,” Wieser said.
Schocke pointed out that the agreement said the developer, after it withdrew the petition, would make a good-faith effort to promptly reapply for the appropriate approvals.
“Is it not true that you withdrew all of your applications for this project in December 2019?” Schocke said, to which Wieser said the petitions were withdrawn in November. “And here we are on Feb. 24, and you saunter in here and say, ‘Oh, by the way, I filed it again today.’ So are you not in breach?”
“No. Absolutely not,” Wieser said.
“Oh, all right, well, then stick with that story, please,” Schocke said.
Wieser then went on to point out that the Plan Commission, of which Schocke was a member at that time, agreed to Russell Group pulling the petition and resubmitting at that meeting, to which Schocke asked if four months constituted a “timely manner.”
Wieser said there’s no time obligation set forth in the agreement, at which point Schocke asked Wieser to yield his time for other attendees.
Council attorney John Reed later said that the project could fall under “event of default” by virtue of Russell Group pulling the plan, but Councilman Mark Herak, D-2nd, brought up the lack of specific time constraints as potentially leaving the town open to a significant liability.
“It’s three months, but the argument is if there was good faith and the time frame,” Herak said.
Herak then asked Councilman Roger Sheeman, R-5th, about his findings regarding taking the Strack’s property off Griffith’s water main and adding it to Highland’s. Based on the units, the town would receive $75,000 per year forever after, Sheeman said.
Schocke and audience members accused Sheeman later in the meeting of going back on his word of opposing the project while he was campaigning for office – a fact Sheeman denied. Sheeman said at the time that he’s in favor of “smart development” and didn’t feel the project fit but had softened his stance later.
Schocke said he was disappointed the resolution didn’t pass after the vote but that he’s a “man of his word.” He indicated he may go back and rewrite the resolution for the next council meeting.
For his part, Wieser remained circumspect about the facility’s chances. “(The Russell Group, Griffland LLC and I) relied on the good faith of the Plan Commission – and Mr. Schocke in particular – to be able come back with new plans, but apparently Mr. Schocke wasn’t acting in good faith,” Wieser said.
The Russell Group will present its new plan for the assisted-living center at 6:30 p.m. Wednesday at the Lincoln Center, 2450 Lincoln St.
PREVIOUS ARTICLE
