Jim Spangenberg, Nicole Loop, Brian O'Connell, John Crimmings and Jean Wolfgang
at Wednesday's RDA meeting.
Developer Tom Tousis has until Monday at 4:30 p.m. to pay the city $5,000 or he'll lose an option on the West Racine site where he intends to build a grocery store, restaurant and gas station.
The city's Redevelopment Authority voted 3-2 to set the Monday deadline after Tousis missed a Jan. 16 deadline to make the payment. Tousis withheld payment after discovering a pipe on the property, located at Washington Avenue and West Boulevard, ran through the middle of his proposed building.
The standoff is based around the complicated, and distrustful, relationship between Tousis and city officials. Tousis claims the city has worked against his project, most recently, by not telling him about a stormwater pipe that runs through the property.
On the flip side, city officials are mystified by Tousis' unwillingness to meet deadlines and follow through on a development he's spent $30,000 on to this point.
Assistant City Attorney Nicole Loop said, legally, Tousis is in breach of contract for failing to pay the $5,000 on time.
"I'm at a loss of where this is coming from," she said.
"If he'd set out to complicate a matter, he couldn't have done a better job," O'Connell added about Tousis.
But the RDA was unwilling to kill Tousis' project Wednesday. Alderman Jim Spangenberg, an outspoken opponent of the proposal, moved to end Tousis' option on the land, but the motion died because no one else seconded the motion.
Cory Mason, a member of the RDA, then sifted through the issue and came up with a proposal to give Tousis until Monday to pay. Spangenberg then moved to set the deadline until Friday, but his amendment was defeated 3-2. The Monday deadline then passed 3-2, with RDA Chairman John Crimmings, Mason and Scott Terry voting in favor. Spangenberg and Robert Ledvina voted against the proposal.
It's unclear what Tousis will do next. He's deposited $5,000 with Landmark Title with the intention of releasing the money to the city when he gets a reliable survey on the West Racine site.
But the RDA made it clear Wednesday Tousis needs to pay the money directly to the city. If he doesn't, the option is dead and the project won't move forward.
"I really don't think he's going to come with the money," Spangenberg said. "I think he's afraid he's going to lose the money."
Karen Sorensen (left), who represented Tousis at the meeting, said the project is at a standstill until the city presents them with a survey showing all easements on the site."We never dreamed there was information that we didn't know," she told the RDA.
Jim Spangenberg should be bound to his chair and wearing a straight jacket during every civil meeting he attends. He is a crazed animal.
ReplyDeleteIt seems to me to be rather simple. Why would any business person, put up $5000 nonrefundable? What would happen if say Access Coridor denied this young man the right to futher his quest? Would the city simply keep his money? If I were Mr. Tousis I would tell the morons at City Hall and all the Council memberd to go and pound sand!
ReplyDeleteAnon 6:08,
ReplyDeleteYou are exactly right! No one should be expected to to have this large of an amount of money be non-refundable. Why, and I ask this not only of the RDA but of Council, was this restriction not put on the last two developers? Why was the 55 unit developer given the option for the cost of maintaining the grass and removing snow from the sidewalks? Why does the listing agent not know about the 3rd easement? Why has City Development failed to give Tom a drawing showing the location of all easements?
This is a two way road that is leading no where. Here the city has a local businessman, with a family history of running quality businesses in our town, and we try everthing to level it! Why? Why has Jim Spangenberg been so opposed to Tom from day one is it jealousy or just his arrogant nature? From the Mayor down the more involved I get in Racine politics the more I know why this once great city has become a ghost town for business.
"It seems to me to be rather simple. Why would any business person, put up $5000 nonrefundable?"
ReplyDeleteTalk to some business people. It is VERY simple. Tousis wanted the exclusive right to purchase the land for a period of time. That right is in the form of a an option contract. The contract was very clear and had a price tag - $5000. Tom, his lawyer, and his realtor negotiated the contract, and then he signed the contract knowing that the cost to do so was a non-refundable purchase price of $5,000 due within 5 days of signing. He never paid, so their is no option.
This is a COMMON business transaction and a real developer would know this.
Anon 6:34,
ReplyDeleteIt seems to me that you have no clue how these things work. No one, and I mean no one would put up this kind of money without a guarantee that they would be sucessful in obtaining ownership of the land they are interested in developing.
I am willing to bet that if Tom's option was refundable you and RDA would see the 5k. It is obvious that you are either a member of the RDA or one of the cities finest politicians, due to the fact that you have info regarding the option that the common person does not. I hope that Tom sayS "F U" to Racine, and West Racine gets stuck with their gravel pit. If this was to happen Mr. Spangenberg can look at the empty lot and tell everyonre how he once again saved West Racine FROM THE EVIL'S OF A GAS STATION.
So in the meantime districts 12,13, and 9 will continue to degrade. The stores on Washington Ave will fall futher into ruin because the owners either can't afford to fix them or are just to cheap to do so. Thank you Mr. Mayor and Mr. Spangenberg for your continued help in stopping progress in Racine, we do appreciate it!
"WEST RACINE THE NEW STATE STREET!"
GOD BLESS OUR POLITICIANS AND OUR DEVELOPMENT DEPARTMENT NEITHER HAVE A CLUE!!!!!!!!!!!!!!!!!!!!
Me Jim Spangenberg, me boss of West Racine. Me no have ask, me just scream and pound table till me get my way. Me no want you in West Racine, me have better idea for property. Me just need you to go away so me can get property. Me no care what Terry McCarthy wants me big boss he have to listen me Big Jim or me beat him up. Me want you to get out of way so I can do my project no yours. Me Big Big Jim you no know me King of West Racine.
ReplyDeleteYou forgot to say Racine Post that Tom walked away from another project leaving the city holding the bag.
ReplyDeleteTom also wanted the City too give him help on the mortgage for West Racine I understand. Wow
( I do like how the Post was able to find a way to say something nice about Mason who can barly make any meetings)
"No one, and I mean no one would put up this kind of money without a guarantee that they would be sucessful in obtaining ownership of the land they are interested in developing."
ReplyDeleteReally? Seems to me people do a very similar thing by when they pay 'earnest money' when buying a house. Why would a commerical real estate transaction be any different?
Earnest Money is typically refundable.
ReplyDeleteWhat I am shocked by is that The Post never said anything about Tom walking away from another site. Why not?
ReplyDeleteI am wondering why Tom's Trolls are still posting looks like this project is dead. What was neat to hear that if I understand right Tom's Realtor knew about the pipe, if true I like to know what the hell is going on?
Having personally witnessed the city's use of the claim that they don't guarantee information they provide, I can understand the developer's frustration. The city puts their lack of guarantee on all their documents to cover themselves legally. It still doesn't cover them ethically.
ReplyDeleteAt some point the mayor and/or council need to hold Brian O accountable. If there is a screw up in Racine his name is on it.
The mayor and/or council also need to examine the level of competence in the city staff that requires all documents to have a not guaranteed accurate claim on them when delivered to the residents and businesses in the City.
The city development group should be looked at to determine why so many developments have serious problems, frustrated developers and apparently conflicting information.
Wake up mayor and council the latest West Racine development mess is not a single event. It is a trend. I know developers who will not work in the city anymore because the problems they have with the various staff in the process. I'm told that what hits the paper is the tip of the incompetence iceberg. Many developers have given up and moved their money/vision to more development friendly communities.
Our leaders are either blind to all the problems or afraid to address the issues in the organization they have been elected to lead. Either excuse is unacceptable.
Randolph
ReplyDeleteYou have so much insight and wisdom about things related to Racine and a sensible outlook on life in general.
Racine needs more of your input!
Would you ever consider writing a
Perspective or opinion column here on the Racine Post -- if they let you?
Just a thought. You have the feel of the real world and what's happening around Racine. Of course no one has all the answers. But we can't stick our head in a hole and let things just past by.
If your not interested in joining with Dustin and Pete I understand.
But please be active on here Racine needs helpful new voices.
Randolph, please consider it?
WE NEED YOU!
Also years ago Racine had a group of retired businessmen and civic leaders who acted like a brain trust -I think the groups name was "Junior Achievement". They helped and encouraged young future entrepreneurs. We need this again.
My only interest here is I care about my home town and what I see lately frightens me.
Mr. Spangenberg needs to start looking for a new job. Mr. Dickhert can join him if he doesn't get his priorities strait. We will be watching at the polls, putting out yard signs and having Town Hall meetings as we move forward with ALL coming elections. Rest assured that Racine Progressives are not immune to what is going on all over the country. Patriots will shine a bright light on this corrupt city hall. Anonymous for now. I'll be the one applauding at all of your concession speechs.
ReplyDeleteAnnon 8:39,
ReplyDeleteI don't see any entry by Randolph. Which entry do you think he wrote? If it is the one above yours, I'm not Randolph.
Considering the city has withheld information, I certainly would not give then money that is nonrefundable. $5000 is a lot of money.
ReplyDeleteIsn't Racine in breach of contract for not letting the developer know about the pipe that would run under the building.
ReplyDelete"Earnest Money is typically refundable."
ReplyDeleteYeah...if the sale goes through or the buyer has cause to pull out of the sale. But, if the buyer pulls out without justifiable cause, then the earnest money is gone.
I am not saying this is identical, just pointing out that it is not uncommon to have to risk money to have the exclusive right to buy a property.
It is very simple, what is going on here. Mayor Dickert has told Brian O'Connell to find 20 business men or women to each put up $5,000.00 dolars, nonrefundable, for a site that is not buildable. Then after he has his $100,000.00 of non refundable money he can justify paying his buddy Freidel for doing absulutely nothing. Remeber Dickert is a Liberal and his goal much like his hero's goal is to reditribute wealth. Great job Mr. Dickert, great job!
ReplyDeleteSorry that should have been "redistribute" not "reditribute"
ReplyDeleteIt never ceases to amaze how city government drives business development away.
ReplyDeleteThey should be bending over backwards to find wasy to work with people willing to spend money in this community.
I think when all the dust settles, a gas station is a gas station, no matter how you gussy it up. Bottom line, no gas station. Period.
ReplyDeletecorrupt government at its best, they all need to go
ReplyDeleteTim- in this case, the property could be swallowed up be a black hole and he would not get his money back. That is how it is differen than earnest money. With the way the City has acted he should not trust them.
ReplyDeleteIf I was tousis I would tell them to F off and shove their property and it can sit vacant because I don't see people breaking down doors to open businesses here. West Racine can turn into State St, Douglas Ave. and no talk of any redevelopment projects will help the city with their crappy superior attitude.
ReplyDeleteTom should not have to follow a contact he willing signed if he does not want to. How dare the City make Tom follow the same rules of everyone else!
ReplyDeleteThank you Tom for selling American gasoline and not that foreign stuff.
ReplyDeleteReal Debate is insane. The city is already willing to give him a $250k corporate welfare payment for the development.
ReplyDeleteBut you're right, that might not be the city bending over backwards. It might be us doing the bending over backwards with our tax dollars being thrown at businesses that couldn't exist without subsidy.
Good, now all the businesses that want that land can finally have it (sarcasm).
ReplyDeleteThey need to rip down the rest of the block to make it more attractive to developers. When they did that downtown, it only took 20 years to fill the hole.
ReplyDeleteIt makes me nervous that Tom signed a contract for an option and never paid for that option. Yet he wants to extend the option. How can we extend something you never actually had? It was like a Laurel and Hardy routine last night.
ReplyDeleteIt makes me nervrous that information that Brian O'Connell, the Development office, and RDA provided Tom Tousis was incorrect and that the Brian tried to extort $5,000 out of him.
ReplyDeleteTom
ReplyDeleteYou need a better class of Troll.
Lets all get bent out of shape over a dirt pile! People get real! This is Racine, the city of lost fortunes, high unemployment, high property taxes, and stupid F's leading the masses to their demise.
ReplyDeleteIs this the doing of Spangenberg and his hench person "Jim's People"?
ReplyDeleteIf nothing else Dustin and Pete should thank Tousis, everytime they write about him they get a huge audience to view their site.
ReplyDeleteIt's not breach of contract, it's called Due Diligence. I worked for 10+ years in Racine on projects that involved commercial and industrial real estate transactions, and I constantly had to go to the city to get blueprints and other documents involving underground utilities and sewer pipes, etc. I don't know all the details here, obviously, but unless the city engineer forgot to draw in where there was a stormsewer pipe, it seems to me Tousis is at fault for not practicing basic due diligence before he moved forward.
ReplyDeleteEither that or the plan's been a convenience store all along and he knows it's crap to continue to lie that it won't be.
Now that the extent of the cities underground infrastructure that can't be touched is fully known I would think that the city better hope the current developer takes it. Who else would want to try something there with all the underground city stuff.
ReplyDeleteIt seems to me some really bad planning took place while the property was empty that now makes much of it unavailable for construction. To put all the underground stuff in while it was vacant seems to be counter to what the city said they wanted on that spot.
This seems to be a case of really bad planning on the city's part. If this is a sample of city planning and development we are doomed.
Anon 1:16- That is exactly what happened. The stormsewer pipe was not drawn on the survey that Development gave to Tousis.
ReplyDeleteBeing raised in Racine and currently living in West Racine, I think that the blame needs to go both to the city and Tom's group. I remember about June or July seeing plans for this project and feel that the city was well aware of the building placement and the location of the storm drain at that time. Maybe Tom, his Realtor, his PR Guy, and those that distributed the petitions did not show "Due Diligence" in respect to the negatives of this site. But at that time why would City Development not mention this problem, to not only save this young man money but the frustration that all of us have felt during this process. The city will say he is a developer and he should know these things and should be aware of such problems. To that I would respond BS. This young man and his group made it their goal to involve the neighbors in the process, and have been chastised by Council members and other city officials for doing so. I also remember at one of the neighborhood meetings this gentlemen saying he was not a developer he was a businessman. Developers build then sell I am opperating this entire project, from construction to operations of the store and resturaunt. Yes maybe he got in a little over his head, but to require a nonrefundable deposite, of that magnatude with so many uncertainties is nothing more than ignorant. If I was abetting man I would bet that Tom has had enough and will go to MT. Pleasent or Caledonia with his project. If he choses to do this it would be a sad day for Racine and West Racine alike.
ReplyDeleteRe-Run here
ReplyDeleteSEE -- I told them to tear down the north side of the street. But they just never listen!!
If you tear down the block where De Rango's is you could get somebody to rehab the old piggly Wiggly with a new front. Add the Gas Station , store and dinner at half the cost.
Just the two junk buildings to knock down. Plenty of room there!!
Maybe Mr. Tousis seen this post the first time and now is exploring across the street.
Once the north side starts to look good again that south side lots will be in demand.
Plenty of open store fronts for a new DeRango's.
Come on folks get with the program. It's all about giving West Racine a much needed kick start.
Just another note.
ReplyDeleteIf the leaders and business of Racine can't find merit in my suggestion about the north side and old Piggly Wiggly. Racine is doomed!
The city can easily use the new laws on "eminent domain" (Best interest of the community) to remove the two buildings and pursue a progressive opportunity. I think I made my case. Thank You
ReplyDelete2:29 - Boy the city better listen to your idea - I don't want the city to be doomed. You're an idiot.
ReplyDeleteThis City revolves around the BANANA concept.
ReplyDeleteBuild Absolutely Nothing Anywhere Near Anything.
Unless of course it is an art project.
Thanks for your opinion -- but we'll see who gets the last laugh.
ReplyDeleteLooks like it will be a Farmer's Market after all.
ReplyDeleteYup! I think your right. But I hope the city paves it so the old folks don't trip on the gravel and weeds.
ReplyDeleteThey could use more of our money to plant a few trees along Washington Avenue side.
We can then all smile at tax time when we pay out extra dollars to cover the money the property once generated. Kool
I have said it before and I'll say it again: Rumor has it that CVS wants to do a bigger/regular sized pharmacy in Racine. Maybe it's the economy, but I'd say that they could redo the old Piggly Wiggly if, like the one commenter proposed, you get rid of the DeRango building so there is more visibility. You offer ReRango a relocation offer (maybe even right next to CVS) and everyone's happy. And then the south side of the street gets interest.
ReplyDeleteHeadline should read Dickert and Spanky!
ReplyDeleteThis comment has been removed by a blog administrator.
ReplyDeleteREMEMBER THIS
ReplyDeleteFROM JIM SPANGBERG'S COMMENTARY IN THE JOURNAL TIMES.
Setting the record straight on West Racine development• "The statement that the land has too many easements so it has limited use is not true."
OOPS! SURE LOOKS LIKE HE LIED...
See for yourself at
http://www.journaltimes.com/news/opinion/editorial/article_9ef9cbc4-e5f7-11de-abf4-001cc4c03286.html
Anon 3:53 a.m,
ReplyDeleteYou sir/madam are a lier! Lord James the 3rd of Spangenberg would never say anything to mislead or misinform anyone! he is our king, "The King Of West Racine" ruler of Washington Ave.. Master of Districts 12,13 and 9. He was sent by God himself to save us from the evils of "The Better Day Clan", a clan of savage beasts with the intent of poluting our great kingdom with gasoline and groceries.
"corrupt government at its best, they all need to go"
ReplyDeleteI could possibly accept a charge of incompentence here, but corruption? Really? How is any of this making anybody at the city rich or giving them any other sort benefit? Who is benefiting from all this mess? Nobody.
Ask Spangenburg about the family member who was shopping around a plan for that site and you should get your answer.
ReplyDeleteTommy - it would be nice to get your position instead of everyone speculating and pointing fingers. I for one are 100% behind your plan, but it would be nice to get your take rather than the journalist/city development only take.
ReplyDeleteThere were three gas stations in the three blocks of West Racine when I was a kid. I wonder if they had these problems when they wanted to build them ?
ReplyDeleteI can see that soon we'll be driving out to Interstate to buy our gas soon because of Racine's red tap.
Who's going to bother building here with all these problems?
"Ask Spangenburg about the family member who was shopping around a plan for that site and you should get your answer."
ReplyDelete1. Evidence?
2. Are you willing to back up the accusation with your name? I mean seriously, why should I believe that when you are posting anonymously? Shouldn't a responsible citizen take info like this public?
Seems easy to me, Tom put your Mom and Dad's money where you're mouth by Monday and it's a dont deal. Shrinking the size of the Mini-Mart is a good idea also. He won't be able to line with walls with the video poker machines anyways.
ReplyDeleteIt sure seems to me that Karen Sorensen has been a pretty poor representative for Tom through this whole process. I haven't read one thing that she hasn't mishandled or screwed up in some way. I wouldn't trust her to handle the sale of lemonade.
ReplyDeleteWhen Karen Sorensen was at the microphone on Wednesday, it was brought up that she knew about these sewer lines for years from past projects and her involvement with West Racine. She never denied it. Her silence was an admission that she and the Tousis team were always aware of the sewer situation. This is just a way for the Tousis team,who doesn't have the brains or money to pull this project off, to get out by blaming the City.
ReplyDeleteThis comment has been removed by a blog administrator.
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ReplyDeleteAlso Karen Sorensen said the 5 Grand was at Landmark title in escrow an easy thing to get the cash and give it to the City. Thinking that will not be happening.
ReplyDeleteBoy Spangenberg has been busy on here. Is his furniture store closed today or has no one come in?
ReplyDeleteThe sad thing is that we pay this fool to be an alderman and probably pay for his health insurance too. There should be a code of conduct for this kind of poor behavior. He acts like a deranged suicide bomber when he doesn't get his way. Mayor Dickert please get rid of this guy, he makes our city look horrible to outsiders.
ReplyDeleteLets trun it into a communtiy garden!!
ReplyDeleteThat's right Tom does not want to play by the same rules we would have to obey but its others fault.
ReplyDeleteWell at 5:00 I plan to be dancing for the return of the Farmer's Market!
Dandman - what's trun?
ReplyDelete