After debate, Geneva council OKs site plan extension for Kirk Road industrial building

The Geneva City Council Tuesday approved a request to extend site plan approval for a year because the developer has not started construction and no building permit has been issued.

But not until council members debated the issue – from an industrial market cool-down to why the developer didn’t come to the meeting in person.

In March 2024, the council granted site plan approval for a 156,000-square-foot industrial building on 13.42 acres west of Kirk Road and north of Fabyan Parkway, Assistant City Administrator Benjamin McCready said.

“The Geneva zoning ordinance allows site plan approval to be effective for one year unless a building permit has been issued and construction has commenced,” McCready said.

“The extension is needed because the industrial market has cooled off since we acquired the site and the supply of industrial buildings in the submarket has already started to increase,” Tomasz Rzedzian is president of TG Financial Management Inc. – which owns the development company – wrote in an email.

Fifth Ward Alderperson Robert Swanson asked what the new timeline is for them to do something.

“The reason for this is ‘market conditions,’” Swanson said. “Things may or may not turn around in a year.”

Community Development Director David DeGroot said if the developer does not pull a permit within the year, they would be back before the council this time next year, asking for another extension.

If the developer wanted to do a different project, he would have to seek new zoning approvals, DeGroot said.

“What sparks my question is when we approved this less than a year ago, one of the items we were not allowed to ask about was the economic viability of the project,” Swanson said. “And now it turns out that the economic viability is the problem for it moving forward. And since then ... if they are seeing a downturn in the market conditions, it seems to me that this isn’t the right project for this site. And maybe we are overdoing it on the warehouses.”

DeGroot said the industrial zoning allows warehouse or manufacturing.

Swanson said he was not comfortable renewing it perpetually until the developer decides the market improves.

“It seems to me that economic viability is the question we should be asking,” Swanson said. “And it’s the reason they’re not building.”

“The reason for them not proceeding is whatever reason it is,” City attorney Ronald Sandack said. He said the extension of the petitioner’s right to build is the council’s prerogative.

Fifth Ward Alderperson William Malecki said the vote last year was unanimous, so he did not have an issue with giving the developer the benefit of the doubt in the extension request.

“They are assuming the risk as far as whether or not they want to put their dollars down to build something,” Malecki said.

But, Malecki said, if it comes up year after year because of market conditions, then he would reconsider.

Third Ward Alderperson Dean Kilburg said he was disappointed that the developer did not attend the meeting in person.

“You would think they would feel it was important enough to come before the council, introduce themselves and explain maybe a reason why they need an extension,” Kilburg said. “But to add it to the agenda and make the assumption that this extension was going to be granted, is a little bit assuming I think on their part.”

DeGroot said they always encourage applicants to attend City Council meetings.

Both First Ward Alderperson Anaïs Bowring and 4th Ward Alderperson said they supported granting the extension.

“I do not see a downside to extending it,” Bowring said.

Mayer said a developer asking for an extension of site plan approval “is a relatively routine request.”

“I think it would send a wrong message to developers in general that they might have the rug yanked out from under them if they do business with Geneva,” Mayer said, if the council were to deny an extension.

The council approved the extension in a 7-1 vote with Swanson casting the lone nay. Second Ward Alderperson Richard Marks and 3rd Ward Alderperson Becky Hruby were absent.