Property offer divides Grand Detour: Township board split on accepting building and lot

GRAND DETOUR – Nothing in life is free, the saying goes.

A building has been offered to Grand Detour Township in Ogle County at no cost. But concerns over what the expense will be once the township owns the property have led to a referendum on the Feb. 2 primary ballot.

Voters will be asked whether the township should accept a 2,000-square-foot building being offered by the Chicago couple who own it. Trustees were split over the offer, and voted 3-2 last fall against it.

But the two who voted in favor of accepting the property, trustees John McLane and Dennis Coomes, gathered enough signatures to put the decision in voters' hands.

Hernando and Angela Madronero want to donate their property at 8094 state Route 2. The building on-site could be used to replace the existing town hall, which has only about 925 square feet and houses a substation of the Dixon Rural Fire Department.

Records at the Ogle County Supervisor of Assessments office set the fair market value of the property at $97,017. An appraisal done this month, however, puts the value at $50,000, according to Supervisor Francis Drew Jr., one of three  board members who voted against the transfer. Drew hired Art Johnson Appraisal Service, of Dixon, on behalf of the township.

The building has two large rooms and three smaller rooms – one that includes a counter and sink – a small restroom, and a 132-by-119-foot lot with highway frontage.

While no one disputes the couple's "gift" offer is generous, it has created a rift among the township trustees.

McLane and Coomes have been vocal supporters of taking over the property and would like to see the building used as a new town hall, or a community center where local clubs and groups can meet.

"How often does a town of 750 people get offered a property for free that is in a prime location and is in good condition?" McLane said. "It seems like a no-risk proposition to me."

As long as the government maintains the building for public use and does not lease part of it, the township would not have to pay property taxes, McLane said.

But Drew, who along with Connie Ross and John Foxley voted against the offer, said the cost of maintaining the building and paying for renovations would be substantial. He doesn't have an estimate of the maintenance and utility costs, but said, in comparison, the township now pays about $500 a year to heat the town hall and $1,700 in insurance. The Dixon Rural Fire Department pays the electric bill, Drew said.

He also said a well and septic tank need to be replaced, which could cost the township almost $20,000.

The bathroom also needs to be renovated, and the parking lot needs work, he said.

Some concerns have been raised by local residents that the property, which once was a gas station, might still have underground gasoline storage tanks. McLane, however, said the tanks have been removed, and the Illinois Environmental Protection Agency's cleanup requirements have been met.

Drew met with the owners on Monday to talk more about their proposal.

"[The Madroneros] are wonderful people," Drew said. "But the bottom line is that this is still going to cost the taxpayers money down the road, and I just don't think there are many people in the community that will use this building if it is made into a community center."

McLane estimates a cost of $5,200 a year for maintenance and utilities on the new property. He based that on the costs of maintaining his own home and lot, which is slightly larger.

But that number is "very preliminary," and further research would be needed for an accurate cost estimate, McLane said.

The township, he said, has sufficient funds to maintain the building, McLane said. In fact, he said the township's General Fund balance may be excessive.

A report McLane presented to the township board Jan. 13 showed the General Fund with a balance of more than $132,000 after the past fiscal year. Average annual spending is just under $35,000, according to the report.

McLane also presented a letter to the township board Jan. 13 from Bryan E. Smith, executive director of the Township Officials of Illinois.

Smith says in the letter that courts have ruled townships should not carry fund balances that are more than 2 to 2.5 times the average annual expenditure – in this case, $70,000 to $87,000.

Smith suggested reducing the tax levy to give taxpayers relief or establishing a Capital Fund from which money is dedicated to a specific purpose, such as the purchase of land or equipment.

Ross said the extra funds have been earmarked to complete projects in the township, such as tarring roads, remodeling the bathroom and replacing windows in the current town hall.

In the long run, it would be easier and more cost-effective to maintain and upgrade the current township hall, she said.

"It definitely would be more advantageous to repair what we have right now," Ross said. "It is more than efficient for what we need."

The Madroneros declined to comment for this story.

Ogle County News reporter Vinde Wells contributed to this report.