Breaking news: Arcade Boarded Up 11/21

Help Still Needed . . . Read On . . .

Those following the plight of the Arcade are aware that this landmark building has been sitting open since August 11, 2008 - the date the assets of its owners were frozen in a federal lawsuit by the U.S. Securities and Exchange Commission (SEC) alleging a massive Ponzi-type scheme which raised appx. $255 million from an estimated 1,200 predominantly orthodox Jewish investors. SEC v. Steven Byers et. al., Case No. 08 Civ. 7104 (U.S. Dist Ct. S.D. NY).

All assets, including the Arcade building, were placed in the control of a court appointed receiver. (The receiver is charged with preserving the value of the assets and is authorized to expend funds necessary to prevent any asset from losing substantial value. )

For months, the Village of Riverside has been asking receiver Timothy Coleman, Esq. of the law firm of Dewey & LeBoeuf to secure the Arcade building to protect it from continued water and animal infiltration and to minimally heat the Arcade for the winter (or until it could be sold, at any rate). For months, sympathies were expressed, but no concrete promises were made in writing.

Meanwhile temperatures in Riverside continued to fall. The sight of frost glistening on rooftops morning after morning and the snowfall on Sunday and Monday had many Riversiders exceedingly worried. We were assured the Arcade would be boarded up by mid-week. Temperatures continued to drop below freezing and the board-up did not happen.

On the morning of Friday, November 21, however . . . the Arcade building was finally boarded up. According to a Village of Riverside e-flash:

"On Friday, November 21, 2008, Wexford Development took steps to secure the Arcade Building from the elements while its disposition is resolved. Water pipes and the fire sprinkler system have been substantially drained and the heat has been turned off to the majority of the building. Windows are being boarded up.

The water bills have been paid, so the water service to the Arcade Building will not be shut off in December due to non-payment. Heat and water are still being provided to the sole tenant of the building to meet lease obligations."

We are exceedingly relieved that the Arcade has been properly boarded up.

As to the draining of the pipes, it had been the recommendation of the Preservation Commission to maintain minimal heat of 55 degrees Farenheit in the Arcade building so that systems would not have to be drained (potentially problematic in older buildings) and that the fire supression protection offered by the sprinkler system could remain intact.

It is also our understanding that it was not the receiver, but the sole tenant of the Arcade building, Grumpy's Ice Cream shop, that paid the water bill for the entire Arcade building and deducted it from rent paid to the receiver so the shop could continue in business.

It is true that if drained completely and properly, the risk of structural damage to the Arcade from pipes freezing and bursting would be addressed. However, the lack of a working sprinkler system in our now largely vacant 1871 commercial landmark is troublesome.

If rumors regarding the receiver's intent to place the Arcade building up for sale are accurate, why would the receiver would not appreciate the value of maintaining working systems in this landmark building until such time as a sale is effectuated?

As a local landmark, the Arcade building is protected as such by our Village Code. Given that Riverside itself is a National Historic Landmark District, the Arcade's landmark status and national significance make it attractive for those willing to pursue a historically sensitive substantial rehabilitation. Potential federal tax incentives include the 20% Federal Rehabilitation Tax Credit, energy tax credits and charitable deductions for the donation of a facade easement a qualified preservation organization. In addition, Cook County offers a Class L property tax incentive for the substantial rehabilitation of historic commericial properties, freezing property taxes at a reduced rate of 16% of "fair market value" (rather than the typical 38%) for 10 years with gradual return to market thereafter. Together, these incentives can be maximized to make historic rehabilitation financially worthwhile.

Words cannot express how meaningful an appropriate restoration of the Arcade building would be to the Village of Riverside. The Arcade is part of our history and our sense of community identity (occupying, as it does, a landmark position in our landscape). We want to see Withers' gracious Victorian Gothic back in service once again, contributing, as it has since 1871 to Riverside's economy and vitality, through day-to-day social interactions of residents and visitors alike.

It is our hope that the receiver will target market the Arcade Building to someone reputable and experienced in the sensitive rehabilitation of historic propertes. Both the National Trust for Historic Preservation and Landmarks Illinois are willing to meet with the receiver to help faciliate this process.

If it becomes apparent that the receiver is not interested in target marketing the Arcade to developers experienced with historic rehabilitation, your letters in support of the nominations of our landmark Arcade to the National Trust and to Landmarks Illinois "Endangered" lists are that much more meaningful.

If the Arcade building is ultimately listed as "Endangered" with these Landmarks councils, the national publicity that will result is sure to reach the appropriate audience.

So, if you care about the long-term preservation and restoration of the Arcade building - whether for its significance as part of the original concept for Riverside through Withers' partnership with Olmsted and Vaux - or as one of the few examples of Withers' High Victorian Gothic architecture remaining in the mid-west - or as the first suburban shopping center in the nation - or as an established and familiar part of Riverside's landscape and community life . . . keep the letters coming! Click here to view sample letters that you can customize and send.