Taxpayer-Funded Giveaway to Corporate Landlord Sparks Controversy in McHenry

A corporate landlord, the Shodeen Group, is set to present a development proposal to the McHenry City Council that would request million of taxpayer money, a million TIF, and a multi-million dollar giveaway of taxpayer-purchased land. The proposal includes plans for eight apartment rental buildings with a total of 799 units and a 130-room hotel, all of which would solely benefit the Shodeen Group as the owner of the properties and land.

Taxpayers Foot the Bill for Corporate Landlord's Expansion

Shodeen Group's Ambitious Development Proposal

The Shodeen Group, a Geneva-based real estate company, is seeking to develop the Green Street/Elm Street area and the former wastewater treatment plant site in McHenry. Their proposal includes the construction of eight apartment rental buildings with a total of 799 units, as well as a 130-room hotel. To facilitate this development, the Shodeen Group is requesting that all city-owned properties in the area be given to them for free.

Taxpayer-Funded Land Giveaway

The properties in question include the former McHenry Savings Bank Building and Lot, the former Carpet Store, the former Justen Funeral Home, and the former wastewater treatment plant site. These properties were purchased by the city using taxpayer money, and the city is also under contract to purchase the Green Street Cafe, the Carey Electric building, and the Carey 3-flat residential dwelling, all of which would be included in the proposed giveaway to the Shodeen Group.

Eminent Domain Concerns

The Shodeen Group's development proposal also includes plans to acquire the Green Peapod Thai Restaurant and D's Marine Service, which the city is currently "in negotiations" to purchase. However, the owners of these businesses have repeatedly stated that they have no interest in being relocated, raising concerns about the potential use of eminent domain or property condemnation to force the sale of these properties solely for the benefit of the Shodeen Group's development.

Taxpayer Burden and Lack of Transparency

The proposed giveaway of taxpayer-purchased land to the Shodeen Group has raised concerns among residents and city council members. The multi-million dollar giveaway was not explicitly stated in the Shodeen Group's development proposal, but rather hidden under the "City Cost" column. This lack of transparency has led to questions about the true beneficiaries of this "public-private partnership," as the city claims to be relieving itself of the burden of maintaining the city-owned parking lots and the former wastewater treatment plant site, while the Shodeen Group stands to gain significantly from the deal.

Potential Rejection and Calls for Accountability

Despite the mayor's apparent support for the Shodeen Group's development proposal, a similar proposal for 1111 Green Street was rejected by the city council in a 4-3 straw poll last month. Given the inclusion of a multi-million dollar giveaway of taxpayer-purchased land in the current proposal, there are expectations that the city council may reject this latest proposal as well. Residents and council members are calling for the mayor and city staff to explain how this giveaway of taxpayer money and resources to a corporate landlord is not a gross misuse of public funds and how it could possibly benefit the city of McHenry.