McHenry mayor kills 50-unit affordable housing proposal at former roller rink site

City could file lien on property, potentially take ownership to demolish and prep for development

The former Just For Fun Roller Rink is seen on Wednesday, Sept. 22, 2021, in McHenry. The business went out of business in fall 2020 and burned down in May 2021.

McHenry Mayor Wayne Jett cast a tiebreaking vote Monday to kill a proposed 50-unit apartment development that would have housed low-income residents at the former Just For Fun Roller Rink site destroyed in an alleged arson fire earlier this year.

The 4-3 vote blocked changes to the city’s zoning that would have allowed homes at 914 Front St. It came as 3rd Ward Alderman Frank McClatchey was absent, leading to a 3-3 tie among the McHenry City Council’s remaining aldermen.

McClatchey, who is recovering from health issues, said he also would have voted “no,” like Jett, had he attended the meeting, which was held in person at city hall.

Council members in favor of moving forward the housing proposal were 1st Ward Alderman Vic Santi, 4th Ward Alderman Ryan Harding and 5th Ward Alderman Shawn Strach. The no votes came from 6th Ward Alderman Patrick Devine, 7th Ward Alderwoman Sue Miller and 2nd Ward Alderman Andy Glab.

Breaking the tie was up to Jett, who voted against the move because he said he feels the city could attract a commercial use to the property, perhaps with a mix of ground-floor retail or office space with housing units built on second or third stories.

Aldermen who voted no did so for the same desire for a commercial aspect on the property as opposed to only residential use.

“I think we can do better in this area,” McClatchey said after the meeting.

With the rejection of Wisconsin-based developer Commonwealth Development Corporation’s 50-unit proposal by the council, the city may actually play a more influential role in determining the property’s future, the mayor said, suggesting Monday evening that the city may have to threaten to take ownership through a lien to address the remaining and unsightly fire damage.

McHenry County records show nearly $195,000 in unpaid property taxes since 2016 attached to the former roller rink site, officials in the county treasurer’s and clerk’s offices said.

County records indicate the property is owned by a trust associated with Aldona B. Cepulis, the proprietor of Just For Fun for more than 47 years, according to her 2002 obituary published in the Chicago Tribune. Her son, Wade Cepulis, is indicated to be the property owner in a McHenry Township Fire Protection District report. Attempts to reach him and another member of the Cepulis family Tuesday were not successful.

The property owner has until the fall of 2023 to redeem the unpaid property taxes, at which point a trustee representing the county would likely try to sell the parcel, but in the meantime, local taxing bodies owed the taxes could take legal action to speed up the transfer of the property into new hands, McHenry County Treasurer Glenda Miller said.

Jett said the city is willing to file a lien on the property – county records show the city already filed one in April over more than $1,100 in unpaid water and sewer bills – to start the process of the city gaining some more control of the property through a judicial process.

The city could potentially take over its ownership if the liens are not addressed and the city prevails through court, a route McHenry is willing to pursue in this case, Jett said in an interview.

To get the affordable housing approved, Commonwealth would have had to be awarded tax credits through a competitive process run by the Illinois Housing Development Authority, and it wouldn’t have received approval for the credits until next year.

Jett said he thinks the city can move faster than that by going the route he’s suggesting.

“Remember the housing wouldn’t even be approved until next year for funding,” Jett said. “That’s a long time to have a property look like this.”

Costs the city puts into remediating the issues with the property to get it ready for another developer could be recouped by the city if it were to gain ownership with the option to sell.

“We will get reimbursed by whoever purchases the property,” Jett said. “We’ve had tons of complaints by residents that we haven’t done anything. Action is critical.”

He said the property’s commercial appeal will be enhanced if the city can facilitate the removal of the parcel’s remaining, fire-ravaged structure and ensure it is meeting state environmental laws to ready it for another developer.

“I think you’ll be amazed over the next year on how many [currently vacant] commercial pieces of property get filled,” Jett said.

He also pointed out that Route 31, which is called Front Street through southern McHenry, is set to be expanded into a four-lane highway by the state within the next five years. That, Jett said, is another point in favor of his argument for a commercial use at the site of the former roller rink, which closed its doors to skaters in September 2020, months before the fire.

The city has heard some interest in the property from potential commercial users, but they have so far not presented specific proposals, Jett said, adding that he thinks developers would get more serious about the roller rink site if its demolition and remediation costs could be taken on by another party.

“A lot of people want new, flat property. They want to build. Sometimes it doesn’t fit their needs with a building on it, it’s more costly sometimes,” Jett said. “Even before the Route 31 expansion, I almost think we’ll get a developer within months after the property is cleaned up.”

Commonwealth’s apartments proposal would have housed people making between 30% and 80% of the McHenry County area median income, meaning the tenants would have had annual income limits, including up to $55,920 for a four-person household.

Rents would have ranged from about $400 to $1,200 for the units, which would have consisted of 16 one-bedroom apartments, nine two-bedrooms and 25 three-bedrooms.

“There are a vast majority of individuals within the McHenry workforce contributing to society on a daily basis that cannot afford the standard market-rate apartment rents that continue to climb at a breakneck pace,” Commonwealth said in a letter to the city asking for support of its proposal.

The city staff recommended approval of the housing, despite the need for a zoning change and city planning documents, namely the Main Street Subarea Plan, envisioning non-residential uses on the site.

“In summary, staff believes the proposed development would have a positive impact on the local economy. Although the development is inconsistent with the Main Street Subarea Plan recommendation for entertainment/office space use, the plan does recommend multifamily land use directly west of the site,” city staff wrote. “The site is also less than 500 feet away from at least two other multifamily developments in the area.”

Strach, one of the aldermen in favor of the proposal, had unsuccessfully argued the stretch of Route 31 on which the roller rink property sits is ripe for change and the housing could have helped catalyze more positive redevelopment.

Jett said he hopes the city can continue to work with Commonwealth to find a different parcel within McHenry on which to build affordable housing.