DuPage Children's Museum & The Bigger Picture

The DuPage Children’s Museum (DCM) was first established in 1987 and came to Naperville in 1997 to the Moser Lumber Showroom located at 301 N. Washington Street.  The Museum went on to re-create their facility and re-open in May 2001.  According to the Museum’s web site in 2006 they hosted 300,000 visitors per year and were named one of Chicago land’s top 10 cultural attractions by Crain's Chicago Business.   As the community is aware, the DCM has struggled financially and has relied on the city’s assistance through SECA funds.  Over the years to today, the DCM has partnered programs with the School and Park District of our community. 

There are two significant points specific to the DCM that are points to be discussed.  

First, the city will have the right to review, reject or support the DCM operating budget just as the City does the Naperville Library and the Naperville Settlement. This ability will now allow direct financial oversight and relieve the city of granting SECA funds to the museum.  Please note that the DCM will not become a line item in the city’s budget like, the Naperville Library and the Settlement.

Second, once the property is owned by the municipality, this non-for-profit organization will become eligible to petition for grants; the combination of these two changes may very well change the face of DCM and their bottom line.

At this point, I must disclose the fact that my decision is to support the land purchase and is NOT for the city’s ability to review and approve the DCM budget and NOT because this open doors for the DCM to obtain other funding sources. 

“I (Councilman Dick Furstenau) immediately supported the deal in executive session meetings as soon as the price hit $3 million because that’s cheap money for that piece of property.” “But if for any reason, the museum can’t hack it after a few years, we own the property and can force them out, level the building and give the people of Naperville the parking solution they’ve desperately needed for years.” ~ Quote from the Daily Herald, September 29, 2010

The above quote and the below information, which is not information that the public can read in the agenda packet, are the key components to the closed session decision I made. I am sure this information had an influence on other councilmen.

A while back the Broeker property (1.5 acres located on the north side of the 5th Ave. train station) was targeted for eminent domain by the city.  The Broeker property was determined by a judge to be worth much more than the council felt they could pay at 4.5M dollars (the judge valued it at 6.5M dollars).

Obtaining property to increase commuter parking options has been a focus of the city for quite some time. 

For the past 24 months, the city has been in discussions and negotiations for the DCM property. When the DCM approached the city with a proposal to pay off the loan and acquire the building and land the council quickly declined the officer due to the large amount still remaining on the loan.  

A short time passed and the second offer was presented.  Staff started working on the wording and details of this proposal after the council, in executive session and a very close vote, agreed to purchase the land and building. After many of the details had been worked out and staff presented the final proposal numerous councilmen, who had approved it prior, changed their minds and the entire proposal was rejected.

Later the DCM staff worked with private donors and others in order to present the council with a more reasonable offer.  During this time frame the DCM solidified the State, County, private donor contributions and the bank determined that they were in favor of making a “write-off” of the loan amount. 

Once the DMC worked out their finance arrangements with the bank, State, County and private donors, they came to the city with the third offer. Once council reviewed this offer, all but one member was in agreement that this proposal was acceptable.  

The State’s financial commitment had to be in the escrow account or there was to be no consideration of this proposal by the City.  Since the State’s money is now in the bank, the council said that they would support this proposal and present it on the October 5 agenda.  The bank had requested that this proposal be presented sooner, but the bank was told that October 5 will be the date of public vetting. 

As they say “the devil is in the details”...

There are many components to the city’s financials; these include five main accounts and their defined uses.  These accounts can be found on the city’s web site if you would like to see the details.

It is important to understand that the City’s monies for this acquisition will only come from (2) of the (5) sources.  These would be the Burlington Fund and the SRAF/SECA; and here is why:

It is mandated that the monies in the Burlington Fund be used only for mass transportation infrastructure.  For the land purchase the monies contributed from this fund will be 1M dollars. 

The mathematical theory used to determine this amount is:
 +/- $18K cost per space x 57 spaces= $1,026,000.00.

The balance of this obligation will come from the SRAF/SECA fund.  This fiscal year (FY10-11) the city has been successful in awarding contracts for capital projects for less than the city’s budget predicted costs.  The projects that have been award have not only benefited the community but have benefited the city’s check book. These savings, along with bonds that have been issued, are allowing the city to take advantage of an opportunity to purchase expensive property at a price that is well below market value.  

No new bonds will be issued for this acquisition.

Naperville, having the collection of businesses and amenities that we do is what makes our community unique. Currently, the city has before them the opportunity to gain 57 sorely needed commuter parking spots. If this non-for-profit, the DCM, should not be able to re-invent itself with this opportunity, the land use will be expanded for additional public benefits.  In my opinion, the reasons above are what changed the negotiations from a polite decline to an enthusiastic acceptance by the council.