Palatine property swap could save taxpayers more than $25 million, officials say

Palatine and the Palatine Park District have reached agreement on a $5 million property swap officials say will save taxpayers $25 million to $30 million while addressing long-term facility needs for both sides.

The village and park district boards approved the deal at their respective meetings Monday.

Under the agreement, the park district will take over the vacant building at 150 W. Wilson St. that was used as a temporary village hall during renovations to village hall from 2014 to 2016.

Park district Executive Director Ben Rea said the Wilson Street property will undergo renovations then serve as an administrative center and board room. That will free up space at the Community Center, 250 E. Wood St., for recreational programs, he said.

The village will take full ownership of the Combined Services Facility at 148 W. Illinois Ave., which is the hub for the community’s water system.

Village officials said the move will eliminate the need for a new public works center that could cost about $40 million. Needed improvements to the Combined Services Facility are budgeted at about $10 million, officials said.

The village already occupies 72% of the facility, which dates back to 1991. The extra space will be used for equipment storage.

“It won't be a brand new, state-of-the-art facility, but it absolutely will be a facility that carries us forward for the next 30 to 40 years,” Village Manager Reid Ottesen said. “Every single village facility will be updated to meet the needs of the residents for now and for the next several decades.”

The village also will receive a park district pole barn at 150 W. Michigan Ave. and pay the district $5 million, under the agreement.

In a related move, the park district board approved the purchase of property at 400 S. Hicks Road, which will house staff now working at the Combined Services Facility.

The village will take full possession of the Combined Services Facility by April 2027, though some renovations may begin earlier.

Mayor Jim Schwantz praised the collaboration, noting the village's ability to address infrastructure needs without adding debt.