Village Reaches 'Tolerable' Financing Compromise on Woodlands, MIP Projects

Hinsdale officials announced a compromise on Monday night that will allow it to complete its Master Infrastructure Plan (MIP), including the Woodlands Green Program, relatively on schedule and with what trustees called “tolerable” debt levels.

Although the proposed financing will apply to the entire MIP, discussion did center around the Woodlands because of the high priority and cost of the project, and hope that construction can still begin next spring.

Seeking to offset the $24 million debt load that he proposed a financing plan that would set a debt cap and avoid the heavy costs of front-end-loading the MIP by adjusting the work schedules.

Trustees and residents all gave support to the plan stating that the village will not take on MIP debt exceeding $4.2 million of the IEPA loans already made or in the works. The plan would increase the village-funded MIP debt by $14 million, more than doubling the village's current debt of $12 million.

Geoga said the level debt would limit the flexibility of future boards and although it was not ideal, he thinks it is a tolerable level.

“It's a compromise. It's imperfect and no one gets exactly what they want—there are trade offs,” Geoga said.

He also said he would not be comfortable extending debt levels beyond the cap he outlined, a statement which most trustees echoed when they gave their support of the plan.

“I get concerned about binding future boards and keeping the debt level manageable,” trustee Bill Haarlow said. “There is a huge amount of deferred maintenance that needs to be addressed … but doubling the village debt load is sobering. This is as far as I would be willing to go.”

Geoga also said that the change in financing might have an affect on the MIP's timeline. However, he said even it does, he does not believe it will create delays of more than one year.

Trustee Laura LaPlaca supported the plan and said the debt is acceptable, and timeline constraints would be an issue regardless.

“I'm not as fearful about debt for infrastructure projects, it's a good use of money,” LaPlaca said. “My main goal is to support a compromise that can get the Woodlands project moving ahead and on the MIP schedule.

"There are always changes that come about … it's hard to project five years, much less 15 in advance and this looks like a good plan.”

Although about 45 residents attended the meeting, only Bill Seith, president of the Woodlands Homeowners Association, addressed the board, mostly with thanks and a positive response.

He said after the meeting that he was pleased with the outcome and he thinks that most residents in the planned Special Service Area (SSA), who will pay for 40 percent of the road construction, were happy, too.

“You're never going to get everyone on board, but most people see that the need for this is great and we need to do whatever it takes to get it done,” he said.

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While establishing the SSA necessitates having a majority of residents in the SSA in favor of the project, Village President Tom Cauley said it's a negative percentage, meaning 51 percent need would need be in opposed. There is no referendum required of the issue and if a group of residents in the SSA was against it, they would need to create a petition.

If previous meetings are any indication, those in the SSA are well of above 50 percent in favor, but Seith agreed with trustee Bob Saigh that residents would need to stay involved.

“I, and other residents, will certainly continue to stay involved in this and make sure everyone is talking and aware of what's going on,” Seith said, adding that in sensitive situations like the Woodlands SSA, the many residents in favor may stay home while a more vocal minority disapproves of the project at public meetings.

No official vote was taken at the meeting but the agreement allowed the board to have staff work on the next steps of the project.

“We will proceed with the Woodlands project and hopefully break ground next spring. I think we're all set,” said Cauley.