Proposed Huntley Town Center Not to Village's Liking

The developer behind what could someday be Huntley’s Town Center got a cool reception recenlty for a proposed annexation agreement that would, among other things, require the village to play a role in securing the financing.

Troy Mertz of Elmhurst-based Mertz Development Inc., has been in talks with the village about an annexation agreement for a piece of property just west of Route 47, near Algonquin Road.

Mertz’s plan includes land donations for the extension of Algonquin Road and a future Metra station. The plans also call for a multi-field football complex and outdoor performing arts amphitheater.

While the plan sounds like it would be a benefit to the village, it is different than developments in the past.

Mertz is asking Huntley to issue Special Service Area (SSA) bonds to fund the expansion of utilities to the 411-acre parcel.

An SSA allows a developer to defer the costs of water and sewer tap on fees through a special tax assessment. Residents or tenants usually pay the SSA over a long period of time through this special tax.

What Mertz wants Huntley to do is issue SSA bonds so it can package water and sewer utilities with the parcels of land and kick start the development. Huntley wouldn’t be financially responsible for paying back the bonds but it would be the conduit for the issuance of bonds, officials said.

It’s an idea Huntley trustees are not embracing.

“We’ve never done this before, I’m not sure it’s really fair to do it for you because we didn’t do it for other commercial developers,” Trustee John Piwko said at a recent meeting. “They (other developers) paid their own way and worked it out.”

Mertz is agreeing to pay the village $500,000 once the bonds are sold but Piwko said the idea would does not benefit the public.

“The other concern I have is what happens somewhere down the line and you can’t pay this mortgage and you default? It will give us a black eye for our credit rating,” he said. “To put our necks out, literally, for that much, I’m not comfortable with it.”

Village Manager Dave Johnson said while the village would not be financially obligated, SSA do have an impact on a village’s credit rating. Huntley does not have any outstanding debt and has managed its finances closely but the existing SSA within its borders negatively affected its last Standard and Pore’s rating.

Trustees want to determine the overall feasibility of the project, Mertz’s credit worthiness and the structure of its finances. Mertz said he would provide more information to the board.

Johnson said Mertz has indicated the project can’t proceed without the issuance of the SSA bonds.

The Town Center would create a dynamic, regional destination of retail shops, restaurants, offices, entertainment possibilities and a variety of housing options, Mertz said.

Another portion of the parcel would be donated to the McHenry County Conservation District for preservation, he said.

No decision on the plan has been made and Mertz and the village continue discussing the topic.