ShoDone on Iron Gate

Dave Baker (6th ward) suggested there was more to the Shodeen deal than meets the eye as he exerted his leadership over newly elected Mayor John Rey to shoot down an annexation agreement proposal for the Iron Gate planned development on DeKalb’s northwest side. As senior member he told the city council that ten years ago this proposal would have quickly and easily passed so the concerns about being behind the competitive eight-ball expressed by Robert Snow (4th) and Bill Finucane (2nd) when the economy rebounds were moot.

The remarkable Lucky Spooner, with DeKalb Associates, discusses plans for the Iron Gate subdivision in 2006.

Ten years ago DeKalb had a moratorium on new residential development.

In December 2002 then Mayor Greg Sparrow formed a “Growth Summit” — a committee of representatives from the local bodies in DeKalb, including NIU, and several citizens-at-large, including me — in the face of public outcry against alleged rampant growth (less than 2%) in DeKalb. As a result of that summit a moratorium was placed on any new residential annexations. (I was not among the consensus.)

Sparrow told developers like DeKalb Associates who at that time (2003) were ready to propose Bethany Ridge to the city council for an annexation agreement to put their proposal on the shelf. Bethany Ridge would have been an extension of the Bridges of RiverMist as a linked development to Park 88 by DeKalb Associates. The project would have been enormous by DeKalb standards rivaling that of B&B Enterprise’s Heron Creek developments in Sycamore.

The last major subdivision annexed and approved by the City of DeKalb remains South Pointe Greens in 2001 or 2002.

proposed nature park

Bethany Ridge evolved to Iron Gate as DeKalb Associates tried to negotiate another annexation agreement with the city. Iron Gate represents an exclusive gated community of high end priced homes that every housing study ever commissioned in the last 20 years says DeKalb needs. Included in the plans were a large nature park with a lake that would solve regional drainage needs, a dedicated public swimming pool and land dedications for a high school and a grade school.

Even with the residential moratorium imposed “Iron Gate” loomed on the horizon for any capital improvement needs of the various taxing bodies. District 428 requested annexation of the portion of the development for a high school after voters approved a $110 million construction referendum so they could get out in front of that pending growth. A complicated deal was put together to purchase the land from the developer that reduced the cash price the school district paid in lieu of impact fees once the planned development was approved. The District paid for road improvements required. They were to recapture those funds upon approval.

The city council voted 4-4 on Shodeen’s annexation request. Baker, Monica O’Leary (7th), Dave Jacobson (1st), and Kristen Lash (3rd) voted against even receiving and filing the annexation ordinance. Rey, Finucane, Snow and Ron Naylor (5th) voted in favor. State law requires a super-majority on annexation requests that require zoning amendments.

Repercussions? DeKalb allegedly has 400 lots awaiting a new home buyer. At the current rate of new building permits issued that’s enough to last 400 years. But there was a time not that long ago when even the slowest growing (percentage-wise) city in the county, DeKalb, issued 400 permits in a single year.

For taxpayers who were told their repayment obligation on the $110 million debt bonds would be kept to around $350 for a then average $150,000 home because of pending growth in DeKalb’s new construction EAV the repercussions will prove costly.

Repercussions for Shodeen and his DeKalb land holdings? Maybe his banks will fold up his tents.  It’s been tough on developers. There’s not too many of them left that can afford to pay for their own vision let alone those of the visionaries that spend other people’s money.

How quickly and easily, Dave?