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Des Plaines approves purchase and developer term sheet for former YMCA with city financing plan
Summary
The council voted to buy the former YMCA at 300 E. Northwest Highway for $1.85 million and approved a nonbinding term sheet for a redevelopment led by the Nicholas family that would have the city finance up to 90% (up to $19.8M) of construction costs under a 20‑year schedule.
The Des Plaines City Council approved a resolution May 4 to purchase the former Ladueff YMCA property at 300 East Northwest Highway for $1,850,000 and advanced a nonbinding term sheet for an economic development agreement with Spectate Group LLC and SG Des Plaines LLC, subsidiaries of the Nicholas family of companies.
Director Rogers told the council the property comprises 4.27 acres and is zoned C3 General Commercial. The purchase agreement includes $15,000 in earnest money and a 30‑day due‑diligence window. Closing would occur within 30 days after the due‑diligence period if the city proceeds.
Under the term sheet the city would finance 90% of construction costs up to $19,800,000 for a 20‑year period at a 2.5% annual interest rate; the developer would provide the remaining 10% (approximately $2.2 million). The operator would be responsible for all taxes after transfer, and the city plans to pursue a Cook County Class 7b incentive while it owns the property during the construction period.
Representatives of the Nicholas family—Chris Coleman, Tony Papanikolas and Gina Papanikolas Bertolini—said they grew up using the Ladueff YMCA and proposed an adaptive reuse that would include an athletic club, a restaurant/bar and a market. Chris Coleman described the proposal as a public‑private partnership intended to restore recreation to the site while generating sales and food‑and‑beverage tax revenue for the city.
Bob Chapman, who lives across the street from the property, urged the council to secure the site against trespassing and said neighborhood residents welcomed the proposal. The council discussed the development parameters and expressed support for preserving community uses on the site.
Council members voted to adopt the acquisition resolution and approve the term sheet by roll call. Alderman Smith moved the acquisition resolution; the motion passed with recorded affirmative votes.
What happens next: the term sheet is nonbinding and final terms of the economic incentive agreement and development agreement will be negotiated and presented to the council for approval. The city will hold the property during construction and transfer the property to the developer after project completion if terms are satisfied.
