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Lindenhurst weighs using $87,000 in prior-owner fines to fund Lindenhurst Center improvements
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Summary
Village officials discussed two options for reinvesting fines collected from a previous Lindenhurst Center owner—creating a LEAP-style tenant-improvement allowance for new tenants or funding buildingwide repairs—while residents and trustees debated eligibility rules and priorities.
Village Administrator Clay Johnson briefed the Lindenhurst Village Board on Oct. 9 about possible uses for fines collected from the previous Lindenhurst Center owner, Arciterra, which the record shows exceeded $87,000 and were deposited to the village general fund at closing.
Johnson presented two primary approaches. Option A would create a tenant-improvement allowance tied to the LEAP (Local Economic Assistance Program) framework that reimburses owners for eligible permanent improvements (materials for tenant buildout, interior and exterior permanent work, signage, life-safety and accessibility upgrades) while capping maintenance items at 25% of the reimbursement. Johnson said LEAP-like bonuses of up to $5,000 could be offered for pandemic resiliency projects, and noted ordinary maintenance such as power washing and painting would be ineligible unless part of a larger facade project. Under this option, funds could be dedicated to new tenants or otherwise structured so the village’s share would not exceed 50% of a landlord’s contribution to tenant improvements.
Option B would use the funds for buildingwide repairs at Lindenhurst Center, such as modernizing signage, repairing or resurfacing the parking lot, updating sprinkler systems, improving landscaping or investing in energy-efficiency upgrades. Johnson told trustees this approach addresses propertywide conditions and could improve overall attractiveness to prospective tenants.
Trustees discussed adding parameters to restrict funds from supporting certain business types (for example, smoke shops, tanning salons or video-gaming cafés) and to prioritize dining and retail uses that align with the village’s redevelopment goals. Community members who spoke during public comment urged different priorities; several favored propertywide repairs while others supported tenant incentives to attract new businesses.
No formal motion was made at the Oct. 9 meeting; staff recommended further outreach and discussion with the property owner and potential tenants. The village estimated a multi-step timeline similar to LEAP program processes, and any final program design would be subject to trustee approval and budgetary controls.
Next steps identified by staff include targeted outreach and developing program parameters for trustee consideration and formal adoption.