Save Riverside Arcade

Arcade Building Under Contract!

2010-04-19T08:39:00.003-05:00

The landmark Arcade Building is about to have a new owner! As reported in the RB Landmark and Village of Riverside e-flash, the purchaser, Mr. Joe Zapani of Bloomingdale, Illinois will take possession of the Arcade following Village approval of his development plans.

Mr. Zapani advised the Village that he intends to rehabilitate the exterior of the Arcade per the last approved plans (submitted by Wexford) and complete the interior as he is able to fill vacant units. Mr. Zapani, principal of A to Z Roofing and General Construction, has developed commercial and residential units throughout the Chicagoland and suburban area. "I am a fan of historic structures and look forward to restoring this important historic building located on one of the prominent corners of the business district and being a part of the Riverside community," said Mr. Zapani during meeting with village officials.

The Arcade, one of Landmarks Illinois' 10 Most Endangered Historic Places, was recently the focus of a high-profile art initiative resulting in a 2,000 Sq. ft. mural that brought our entire community together. "This Place Matters," is the message residents have been sending of the Arcade and of Riverside. And now, someone with an appreciation of the Arcade's role in our community has come forward to begin the Arcade's return to service. "Mr. Zapani's plan for ground floor retail and mixed-use for the second and third floors in the Arcade will be a driver in helping the Village revitalize our entire business district," said Village President Michael Gorman.

Welcome news, indeed!

Arcade Mural Project on Video

2010-03-04T17:40:00.009-06:00

For those who have only read about the plight of our landmark Arcade Building, a remarkable 2,000 square foot mural representing thousands of hours of volunteer labor was installed in December to demonstrate to surrounding communities and the nation just how much "This Place Matters."

For your viewing enjoyment, Riverside resident Sally Faust has filmed, edited and produced at 9.5 minute video which really captures the flavor of the Arcade, its history, the scope of the mural project and the local talent and passion that made this happen.

The video includes footage from the interior, showing proximity to Riverside's commuter train station, other historic commercial buildings and Township Hall . . . It is an effective visual demonstration of why the Arcade was Riverside's premiere commercial landmark for over 138 years.

Please click on the "Arcade Video" tag below and share this link with others . . . the Arcade is still in need of a purchaser experienced in the historic rehabilitation of commercial structures. Let's keep getting the word out!

Arcade Video

Arcade Mural Project

2009-11-27T12:57:00.001-06:00

Posting live from Riverside Arcade... The mural panels are being installed today and they look fantastic!

Thanks to the student artists at Riverside-Brookfield High School, the Riverside Arts Center, Metal Mites, ABAI, and countless community volunteers, for all their hard work. This is truly a beautiful collaboration of which we can all be proud!

Don't miss the official unveiling ceremony on Friday, December 4, 2009, at 5:15 PM (prior to the Holiday Walk).

Here is a sneak peek at some of the panels as they are being installed. We hope to see you on December 4!

Arcade for Sale!

2009-05-22T18:12:00.003-05:00

This just in from the Riverside Brookfield Landmark:

The owner of the Arcade Building in downtown Riverside has rejected all of the bids it had received for the property and will move to sell it on the open market.

Joe DeGroot, an asset manager for PrinsBank in Prinsburg, Minn., said Friday that he received 12 bids for the vacant local landmark, but that all of them fell short of expectations.

"We've returned all of the [bid deposits] to the bidders and we'll move ahead with a Realtor," DeGroot said. "By the end of next week it should be on the market."

See full article here:

http://rblandmark.com/main.asp?SectionID=1&SubSectionID=1&ArticleID=5017

Arcade Bids due May 15 - this Friday!

2009-05-11T15:06:00.005-05:00

A short - unadvertised - bid deadline of May 15 has been set for the Arcade building by mortgage holder Prinsbank. Landmarks Illinois quickly updated its "Ten Most Endangered" listing on the Arcade to include downloadable copies of the bid documents.

http://www.landmarks.org/ten_most_2009_1.htm

Prinsbank has not indicated whether it will arrange for an open house for prospective bidders to view the Arcade building before Friday's deadline. Thus far, according to an interview with Prinsbank's Joe De Groot published in the Suburban Life Prinsbank is 'looking more at the financial aspect of the purchase rather than the buyer's plans or knowledge of historic restoration.'

http://www.mysuburbanlife.com/riverside/newsnow/x362989322/Bid-deadline-approaching-to-submit-Arcade-building

A decision to simply unload the landmark Arcade as quickly as possible has repercussions. For example, in the words of "scafuri" who commented on the Suburban Life article:

". . . I am not suggesting that the bank give precedence to the historic aspect but they should at least give it a fighting chance to survive by allowing a better time frame to find purchasers. I do not live in Riverside but often visit. . . . (The Arcade) is the only beautiful centerpiece left in town. I have moved around the country alot and will certainly remember the PrinsBank negatively when I am in their locality."

While Prinsbank is ostensibly "letting those who have already shown us interest get the first chance" it would seem that free advertising to a wider audience such that offered by Landmarks Illinois would be in Prinsbank's best financial interest. What would Prinsbank's shareholders think?

In our view, Prinsbank should:

1) extend the bid deadline,

2) work with Landmarks Illinois on the marketing and

3) have an open house for all prospective bidders prior to the deadline.

In this way, Prinsbank could increase its potential recovery on the property and the Arcade would have a decent shot at attracting a reputable and experienced purchaser.

Arcade Up For Bid - Deadline May 15

2009-05-04T13:18:00.006-05:00

Within days of the Arcade's designation as one of the "10 Most Endangered Historic Places" in Illinois, its mortgage holder, Prinsbank, has opened the bidding. The deadline for all bids is May 15, 2009.

Ideally, the people of Riverside would like to attract a reputable purchaser for the Arcade - one with experience in the rehabilitation of historic commercial properties. Bid applications can be obtained from Prinsbank or the Village of Riverside Preservation Commission. Text of the application is reproduced here:

Dated at Prinsburg, Minnesota, April 30, 2009 .

PARTIES TO THIS AGREEMENT:

Sellers: CapFinancial Properties CV3, LLC
508 3rd Street
PO Box 38
Prinsburg, MN 56281
Tel.: 320-978-9101
Fax: 320-978-4166

Buyers:

PROPERTY COVERED: See attached Exhibit “A”

BIDDING REQUIREMENTS:

Bids shall be considered an offer to purchase the Real Estate described in the preceding paragraph. A Bid deposit will be required for all bids submitted. The Bid deposit amount is $20,000, and must be submitted along with this Bid form. Bid deposits which are not part of an accepted bid will be returned to bidder.

ALL BIDS AND REQUIRED DOCUMENTATION MUST BE RECEIVED BY May 15, 2009.AT THE OFFICES OF CAPFINANCIAL PROPERTIES CV3, LLC, 508 3RD STREET, PO BOX 38, PRINSBURG, MN 56281.

CASH BID:

Bidder, as specified by signature below, offers to purchase the Real Estate described herein, for the cash sum of:

and /100 Dollars.

In the event that this offer is determined to be an acceptable offer, the Bid Deposit check of $20,000.00 will be considered a part of this offer. Bidder understands that by signing this contract they are legally bound to the terms of this agreement and possible forfeiture of the bid deposit should they fail to complete the purchase of this Real Estate.

BIDDER(S):

CLOSING CONDITIONS:

Property is conveyed “as-is, where is” with no warranty as to mechanical function or otherwise. Buyer to pay fees associated with the proper recording of any documents required by Seller in order to complete the transfer of the property or security interest of Seller associated with this transaction. Seller and their attorney may determine that a more formal purchase agreement is required and will provide such an agreement if Seller determines it is necessary. Seller will provide a limited warranty that they have placed no liens, encumbrances, delinquent taxes due upon the premises on the date of closing or that the same will be paid on said date. Current taxes including any current assessment or portion yet due under the real estate taxes, shall be prorated to the actual date of closing. The utilities obligated upon the property shall be prorated and calculated to said date of closing. Seller will determine an acceptable title company to handle the closing of this transaction and will provide a title commitment to show it possesses marketable title. If buyer desires an owners policy of title insurance, that cost will be the responsibility of the buyer.

AS IS CLOSING:

Closing date shall be determined if an acceptable bid is determined to allow a reasonable time for due diligence and inspection for the buyer, but in no case with this closing be more than 90 days from the time buyer and seller agree on a price if the offer is deemed acceptable.

Dated: SELLER
CapFinancial Properties CV3, LLC

By:
Its:

Dated: BUYER(S)

EXHIBIT “A”

LEGAL DESCRIPTION OF PREMISES

LOTS 486, 487 AND THE WEST 29 FEET OF LOT 488 IN BLOCK 13 IN THE SECOND DIVISION OF RIVERSIDE, IN SECTION 36, TOWNSHIP 39 NORTH, RANGE 12, EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS.

PIN: 15-36-301-026-0000, 15-36-301-062-0000

ADDRESS: 1 RIVERSIDE ROAD, RIVERSIDE, ILLINOIS

Arcade Makes Top 10 Endangered List

2009-04-29T21:21:00.007-05:00

The Blue Room at the State Capitol building was charged with anticipation on Tuesday, as Landmarks Illinois prepared to announce its 2009 "10 Most Endangered Historic Places" List. It was a standing-room only crowd, as representatives from nominee sites filled whatever seats had not been reserved for press and began lining the aisles.

While we knew for a certainty upon entering the Blue Room that morning that Riverside's own Arcade Building was among the Top Ten (the professional display boards with photos of the Arcade prominently featured were a dead giveaway) it was both exciting and gratifying to hear Jim Peters, President of Landmarks Illinois, explaining the program and criteria for selection.

The "Ten Most Endangered" program is well established. Now in its the fifteenth year, the annual announcement of our state's most endangered buildings is something that legislators and members of the preservation and development communities have come to expect.

"Often these sites are not threatened because no one cares about them. It's about raising attention to their plight and making people aware of what the locals already know about them," said Mr. Peters. "This is our work plan. This is a huge state and to focus our work on the buildings that are most critical, this '10 most' list does that."

The Arcade Building was designed in 1871 by Frederick Clarke Withers, then-partner of Olmsted and Vaux and famous in his own right. Withers' three story Victorian Gothic, designed as a multi-shop arcade, is nestled aside the commuter train station in the central business district, yet enjoys sweeping views of parkland. The Arcade completed Olmsted's vision for Riverside as a place in which "rural and urban advantages are agreeably combined" and until recently (see posts below), endured as a commercial focal point and contributed to our community identity.

Popular support for the Arcade has been tremendous. Landmarks Illinois received several hundred "Save the Arcade" letters from people from all walks of life: scholars, architects, historians, as well as Riverside residents including business and governmental leaders, former tenants of the Arcade and elementary school children. The Village of Riverside unanimously passed a resolution in support of the continued preservation of the Arcade and opposing any potential demolition. Locally, people recognize that the Arcade is critical to the historic integrity and vitality of Riverside.

Inclusion on Landmarks Illinois "10 Most Endangered Historic Places" List will give the Arcade Building much-needed wider exposure. While control of the Arcade has recently passed to an out-of-state mortgage holder - PrinsBank in Prinsburg Minnesota - the bank has indicated that it will not list the Arcade with a broker, but will merely wait for someone to make an offer. There is legitimate concern that when the bank sells to the highest bidder, experience with historic rehabilitation will not be a primary consideration.

As one of the "10 Most" endangered historic places in Illinois, Landmarks Illinois is now promoting the Arcade on its website: www.landmarks.org/ten_most_2009_1.htm

If you visit the site, you will see that they are actively directing interested parties with experience in historic rehabilitation to contact the Prinsbank account manager for the Arcade Building, Joe De Groot at 320-978-6351.

This type of exposure can only help. We are grateful to Landmarks Illinois for selecting the Arcade Building as one of its "10 Most Endangered." And this could not have happened without every one of you who wrote a letter a letter or signed a petition, or spread the word or lent a hand.

Thank you.

The Natives Are Getting Restless . . .

2009-03-04T14:55:00.003-06:00

Since Grumpy's was forced to vacate Riverside's landmark Arcade Building in January, residents have seen the "This Place Matters" signage from the Friends of the Arcade's National Trust photo campaign subsequently removed from Grumpy's former storefront. In recent weeks, more of the building's historic art glass has been boarded over.

And still it sits. As the Arcade building changes hands, Riverside residents are understandably restless over the fate of their beloved landmark. This just in from the Opinion page of today's Riverside-Brookfield Landmark:

Saving a landmark

Now that the Arcade Building in downtown Riverside is out from under the thumb of a court-appointed receiver and no longer part of the massive Wextrust securities fraud lawsuit, it's time to try to figure out a way to save it.

That's going to be a tricky proposition, of course, since the building is in private hands - namely a Minnesota bank. But in a call to that bank by the Landmark, PrinsBank President Michael Mulder seemed to indicate that the mortgage holder (a company affiliated with the bank) would seek to sell the building to get it off its books.

If that's the case - and we can see no reason for that not to be the case, because the mortgage holder likely has no interest in owning an empty, unfinished financial black hole or being a real estate developer - then Riverside can start pressuring the owner to sell, and soon.

First off, Riverside can enforce its property maintenance code to the letter in order to send the message that the village has no intention of letting the Arcade Building stand as a miserable hulk.

The village's Preservation Commission could begin reaching out to those property owners, both within and outside of Riverside, interested in saving local landmarks. While no one can force the mortgage holder to act and the credit markets are still clamped down tight, it seems that the village should be able to play a role in getting this problem solved, even if it's merely prodding it along with a stick.

One thing's certain, Riverside can't afford to see its first and most important commercial landmark fall so far into disrepair that the wrecking ball is the only solution.

Unlike the court-appointed receiver, the building's new owner and his agents are easy to reach. Time to start calling.

Receiver Seeks to Unload Arcade

2009-02-15T14:10:00.006-06:00

It has been disheartening for Riversiders and lovers of great architecture to see the crown jewel of our commercial district, Frederick Clarke Withers' Arcade building, vacant and boarded up, frozen in a far-off legal action.

Those following the saga may be somewhat cheered by the news reported in Wednesday's Riverside-Brookfield Landmark:

Bank may reclaim Arcade next week

Unless there are objections filed in federal court by 4 p.m. on Feb. 17, the Arcade Building in downtown Riverside will be dumped into the hands of its mortgage holder, according to the latest court filing in the Wextrust securities fraud suit.

On Feb. 6, Timothy Coleman, who was appointed receiver of Wextrust's assets by a federal judge last August, filed a motion seeking an order to approve the receiver relinquishing its interests in the Arcade Building and other Wextrust properties.

In his filing in New York District Court, Coleman asked Judge Denny Chin to approve his request of letting the current mortgage holder, Cap Financial CV3 LLC, assume ownership of the Arcade Building.

Supporting documents state that Wextrust raised $2.3 million from securities investors when it bought the building in December 2004 for $3.4 million.

Wextrust obtained a $2.9 million mortgage on the property; that mortgage is in default and several liens have been filed against the property. The company servicing the mortgage, according to court documents, stated that the monthly debt service on the building is roughly $21,000 in addition to $73,174 in annual real estate taxes.

A real estate advisor hired by Coleman estimates that it would take $250,000 to complete the renovation of the Arcade Building. Meanwhile, Don Price, president of Wexford Development Group, states in a declaration in support of the receiver's motion that the Arcade is in need of "minor (but necessary) repairs."

Price also states that the building's ownership remains unclear "because two conflicting operating agreements exist. The most likely scenario is that both Wexford Equity Partners LLC and [Wexford Development Group] have ownership interests and that an unaffiliated individual, Peter Sahlas, owns a small interest in Riverside Arcade LLC."

Elsewhere in the court documents Sahlas' ownership interest is pegged at 8.7 percent. Sahlas was the principal owner of the Arcade Building until he sold the majority stake in the building to Wexford in 2004.

-Bob Uphues

So next week, if the court approves the receiver's proposal, the freeze with respect to the Arcade building will be lifted and control will revert to the mortgage-holder.

One would expect the mortgage-holder to analyze the unique aspects of the landmark Arcade and any quirks involved with its financials with greater scrutiny than a court-appointed receiver with wide-ranging and international responsibilities. Given the architectural and historic significance of the Arcade, the mortgage-holder would undoubtedly benefit from the kind of target-marketing that Landmarks Illinois had offered to the receiver. (See post below, from 12/08.)

There may yet be hope.

Landmarks Illinois Contacts the WexTrust Receiver

2008-12-23T09:49:00.005-06:00

Thanks in large part to the letters and emails sent by local residents and supporters of historic preservation, voicing their desire to save the historic Arcade building in Riverside, Landmarks Illinois has weighed in with its own letter - directly to Dewey & LeBoeuf, the WexTrust receiver.

On Friday, December 19, the president and CEO of Landmarks Illinois sent this letter offering targeted marketing assistance for the Arcade building. To the extent the receiver may have been thinking about liquidating this asset without regard to experience with historic rehabilitation, this letter from Landmarks Illinois comes none too soon...

December 19, 2008

Mr. Dean C. Gramlich
Dewey & LeBoeuf
Two Prudential Plaza, Suite 3700
180 North Stetson Avenue
Chicago, IL 60601

Re: WexTrust-owned “Arcade Building”, Riverside, Illinois
SEC v. Steven Byers et al., Case No. 08 Civ. 7104 (U.S. Dist. Ct. S.D. N.Y.)

Dear Mr. Gramlich:

It has come to our attention that your firm has been appointed as Receiver for the historic Arcade Building located at 1 Riverside Road in Riverside, Illinois.

As the statewide advocacy organization for historic preservation in Illinois, we would like to convey the importance of this historic structure and appeal to you for its speedy rehabilitation.

Based on the feedback we have received from local residents, their concerns are that the building be adequately secured, properly sealed to prevent water infiltration during the inclement winter months, monitored on a regular basis to prevent vandalism and sold to a new owner who can properly maintain the building.

While it is unfortunate that the rehabilitation plan between WexTrust and the Village of Riverside has come to a halt, your status as Receiver presents an opportunity to market this much-admired local landmark to a suitable buyer.

We would be happy to post the Arcade Building on the Imperiled Buildings For Sale section of our website and provide you with a list of real estate developers familiar with the adaptive reuse of historic properties.

If you feel this would be of assistance, we would be happy to discuss the matter further in person or over the telephone. Our offices will be closed for the holiday as of December 24th, but will reopen on Monday, January 5th.

Thank you for your attention to this matter.

Sincerely,

James Peters
President and CEO
Landmarks Illinois

***

Friends of the Arcade say "This Place Matters"

2008-11-26T19:46:00.009-06:00

This just in from today's "Friends of the Arcade" gathering in Riverside.

Over 30 Riverside residents toting homemade signs, children and household pets gathered in front of the historic Arcade building this afternoon to express concern for the uncertain fate of this beloved local landmark.

The community received disheartening news in this morning's Riverside Brookfield Landmark, which reported that the sole remaining tenant in the Arcade, Grumpy's ice cream shop, has been told to vacate the building by January 1st. Reportedly, the notice to vacate came from a former employee of the Arcade building's owner (WexTrust) named Don Price. Price stated that in issuing the notice to Grumpy's he was acting under instruction from the court-appointed receiver for WexTrust's assets (a member of the law firm of Dewey & LeBoeuf). See SEC v. Steven Byers et al., Case No. 08 Civ. 7104 (U.S. Dist. Ct. S.D. N.Y.).

Last Friday, water, gas and electric service were shut off in the majority of the Arcade building excluding Grumpy's, and the pipes were mostly drained. This leaves the landmark Arcade building without a working sprinkler system. Once Grumpy's is gone, there will be no on-site fire supression system or alarm for any portion of the building and no on-site eyes to protect from vandalism. (Nor, regrettably, a comfortable and convenient local gathering spot for ice cream, coffee and conversation . . . )

Riverside's premiere commercial gem, contributing to the experience of residents and vistors alike for over 138 years, is at risk right now. The Arcade building is one of several dozens of properties (including diamond mines in South Africa) frozen in the extensive WexTrust receivership. While the receiver does have the authority to dispose of assets, the Arcade building has not, as of this date, been listed for sale.

What strikes us most about the above photo from the "Friends of the Arcade" rally is the juxtaposition of the Arcade's bleak boarded up window on the left with the lively storefront under the historic art glass that is home to Grumpy's on the right. It is like comparing two possible outcomes . . .

What will the future hold?

In this author's opinion, we all need to do what we can to bring this landmark building back into service, educating the receiver about the value of target-marketing the Arcade building to reputable developers experienced in the rehabilitation of historic properties.

Click on "How to Help" for easy ways in which you can support these efforts.

For more photos, please visit: www.flickr.com/groups/thisplacematters

National Trust "This Place Matters" Program

2008-11-24T12:01:00.000-06:00

What is it? "This Place Matters" is a photo-sharing campaign in which the National Trust for Historic Preservation asks people to post photos of themselves in places that matter (e.g., in front of the Arcade Building . . .) to the National Trust's Flickr group.

They even have signage which can be downloaded and included in your photos. This, from the National Trust's website:

To increase our impact, we're moving the campaign to Flickr, a photo sharing website that allows people to upload their own and browse millions of other people's public pictures. Signing up is easy, click here to get a Yahoo! ID which will allow you to create a Flickr account. It's easy and free. If you already have a Yahoo! ID, log in here and follow the steps to create a Flickr account. If you're already into Flickr, then you're ahead of the game!

First, download our sign, then when you upload a This Place Matters photo, join our This Place Matters photo group and click "add a photo" -- then it will get pulled in to our slideshow!

You can also check out the photos that have already been uploaded here before you commit, but we need your help in spreading the word because the more people we can get involved, the more momentum we have in saving the places that matter to all of us.

Those attending the SAVE RIVERSIDE ARCADE gathering on Wednesday may wish to download a "This Place Matters" sign and make the most of this photo-op. (A nice option for those of us who are not artistically inclined . . .)

Breaking news: Arcade Boarded Up 11/21

2008-11-21T15:59:00.013-06:00

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.

How You Can Help Save the Arcade

2008-11-20T09:50:00.001-06:00

[Ed. Note: The following call to action comes from the Village of Riverside Preservation, Historical, and Economic Development Commissions. It explains how you can help save the Riverside Arcade by sending letters of support to the National Trust for Historic Preservation and Landmarks Illinois. Feel free to use the sample letters posted on this blog to reach the National Trust and Landmarks Illinois.]

As you may know, Riverside, Illinois is America’s first planned suburb and is itself a National Historic Landmark Village designed by Olmsted and Vaux in 1868.

We seek your help with regard to an imperiled landmark: the Arcade Building designed in 1871 by Frederick C. Withers, partner of Olmsted and Vaux and architect of many Victorian Gothic structures on the National Register of Historic Places.

Predating even the construction of Riverside’s Township Hall, the Arcade building occupies a landmark position in Riverside’s landscape and is integral to the fabric and history of Riverside, Illinois. Besides its significance to Riverside, the Arcade building is one of the earliest examples of a multi-shop arcade in the nation.

Since mid-August 2008, the Arcade building has sat largely vacant and exposed to the elements, left abruptly in mid renovation by a court order freezing the assets of its owners. Efforts of our Village Manager and Attorney to convince the court-appointed receiver to secure and heat the building have as of yet been unsuccessful.

We are concerned, with the onset of winter, that the Arcade will be structurally compromised. In addition to missing 3 historic decorative art glass windows from the west side of the building, there are 3 missing and unboarded transom windows on the south side. The building is open to the elements and there is evidence of animal habitation and water infiltration. If the heat is not turned on shortly, the pipes will burst and structural deterioration will occur.

Therefore, the Riverside Preservation Commission, Historical Commission and Economic Development Commission seek your help in nominating the Arcade Building for “Endangered” lists with both the National Trust for Historic Preservation and with Landmarks Illinois. It is our hope that the nominations will persuade the receiver and/or the court to release funds necessary to, at a minimum, protect the landmark Arcade building from the elements this winter. If the National Trust and Landmarks Illinois ultimately list the Arcade building as “Endangered,” it will receive statewide and national attention that may attract a responsible preservation-minded purchaser.

You can help us by writing two letters: One to the National Trust, the other to Landmarks Illinois, voicing your support of the following efforts:

The nomination of the Arcade Building to their Endangered Buildings listings, and
The Village of Riverside obtaining the assistance of these Landmarks Councils in its effort to reach the receiver and secure the property before the building is further compromised.

Please mail your letters to:

The Preservation Commission
Ms. Aberdeen Marsh-Ozga
c/o The Village of Riverside
27 Riverside Rd.
Riverside, IL 60546

You can also send your letter via email to hresq@yahoo.com. The deadline for submitting letters of support is December 17, 2008.

Thank you for your support in this urgent matter.

--The Village of Riverside Preservation, Historical, and Economic Development Commissions

The Missing Windows

2008-11-19T14:17:00.000-06:00

Ed. Note: Here is another excerpt from an 11/18/2008 article by Bob Uphues in the Riverside/Brookfield Landmark about the imperiled Riverside Arcade Building. The photo below is used with permission of Aberdeen Marsh-Ozga.

Part of the Arcade Building's vintage charm was the art glass windows set into the arched transoms above the plate glass storefront windows. While a couple of the smaller art glass windows (namely, the ones above the south windows of Grumpy's), three others were removed and at least two of those appear to be missing.

In the Preservation Commission's application for the Arcade Building's inclusion on the National Trust's most-endangered list, it is noted that the commission had "discovered one of the three missing historic art glass windows in the possession of a glass contractor."

That contractor told the commission that he heard Wextrust has remaining art glass windows "in storage."

"It is unknown whether the art glass windows rumored to be in storage in fact are safe, or alternately, whether they have been lost or damaged," the application states.

In the meantime, the application notes that "there is evidence of both water infiltration and animal habitation on the ground floor of the Arcade Building."

The building has not been vandalized and the village has now barricaded two ground-floor doors. Incredibly, the doors were left unlocked and unsecured, according to the application.

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How can you help save the Arcade Building? Click here.

Riverside Arcade In the News

2008-11-19T14:15:00.006-06:00

An article in today's Riverside/Brookfield Landmark highlights the efforts of three Riverside village commissions to get the Riverside Arcade building classified by the National Trust for Historic Preservation as one of America's Most Endangered Historic Places.

The effort, supported by the Village of Riverside Preservation Commission, Historical Commission, and Economic Development Commission, aims to help safeguard the structure and facilitate its sale and redevelopment.

Here is an excerpt from the article, written by editor Bob Uphues:

The Arcade Building, constructed in 1871 as part of Riverside's original plan, has been virtually vacant for over a year. While the building's owners planned to renovate the three-story building and completed many improvements to the top two floors, the first floor remains gutted.

In August, work on the building halted completely after the federal government filed a civil lawsuit against two principals of Wextrust Capital LLC, which owns the building. Steven Byers and Joseph Shereshevsky have been accused of defrauding investors of millions of dollars related to real estate and securities offerings.

All of the company's assets were frozen by the court, which has appointed a receiver to manage those assets.

On Nov. 10, both Byers and Shereshevsky were criminally indicted in New York district court for their roles in what has been described as an elaborate Ponzi scheme, where money raised for one purpose was used for other purposes.

Recently, a source familiar with the case said that the receiver will recommend putting up for sale the Arcade Building and other properties owned by Wextrust. However, many in Riverside fear that the building, which remains unsecured and open to the elements, will suffer irreparable damage unless it is readied for winter weather.

In its application to the National Trust, the Preservation Commission states that "the Arcade sits with plywood covering most, but not all, openings. ... Water in the plumbing and sprinkling systems poses a major structural threat, as the unheated pipes will freeze and burst this winter."

If the building is chosen as an endangered historic landmark by the National Trust, that partnership "should compel the receiver's cooperation without formal legal intervention. Ideally, the Arcade will be secured and heated until a reputable, preservation-minded purchaser is identified."

The Unprotected Arcade

2008-11-19T14:04:00.001-06:00

The following photos were provided by Aberdeen Marsh-Ozga, a member of the Village of Riverside Preservation Commission.

Arcade Building, exterior (2008): North side.

Arcade Building, exterior (2008): Inadequate window coverings.

Arcade Building, interior (2008): Inadequate window coverings.

Arcade Building, interior (2008): Decaying ceiling tiles.

Stalled Rehabilitation Project Imperils the Riverside Arcade

2008-11-19T13:11:00.001-06:00

In the heart of Riverside, Illinois (America’s first planned suburb, itself a National Historic Landmark District) an 1871 Victorian Gothic landmark known as the Arcade lies imperiled. The Arcade, designed by Frederick C. Withers, is America’s first suburban shopping center.

Until recently, although it was in need of some deferred maintenance, the Arcade was an attractive component of Riverside’s historic downtown. The centrally-located Arcade was occupied with shops and restaurants contributing not only to Riverside’s economy, but to its sense of community identity.

In the summer of 2008, most of the ground floor windows were removed for a proposed rehabilitation. On August 11, 2008, the U.S. Securities and Exchange Commission (SEC) sued the Arcade’s owners for allegedly defrauding over 1,200 investors of approximately $255 million. All assets were frozen. Work on the Arcade immediately halted.

Since then, the Arcade sits with plywood covering most, but not all, openings. Water and animals are infiltrating the largely vacant building. Water in the plumbing and sprinkling systems poses a major structural threat, as the unheated pipes will freeze and burst this winter. The ongoing derelict appearance of this prominent building is hampering Riverside’s efforts to attract tourism and demoralizing the community.

Possible Solutions

The court-appointed receiver could release funds to prevent the loss of the Arcade building but appears unwilling to do so. Partnering with the National Trust for Historic Preservation may elicit the receiver’s cooperation without formal legal intervention. Ideally, the Arcade will be secured and heated until a reputable, preservation-minded purchaser is identified.

Sample Letter to Landmarks Illinois

2008-11-18T09:43:00.001-06:00

[Ed. Note: Below is a letter you can use as a template to voice your support for nominating the Riverside Arcade Building to Landmarks Illinois' "10 Most Endangered Historic Places" List. You may modify it as desired. Letters are due by December 17, 2008.]

________, 2008

Aberdeen Marsh-Ozga
Preservation Commission
Village of Riverside
27 Riverside Road
Riverside, IL 60546

Re: Nomination of Withers’ Arcade to the Landmarks Illinois’ “Ten Most Endangered Historic Places” List

Dear Ms. Marsh-Ozga:

Please forward this letter on my behalf to Landmarks Illinois.

Riverside’s landmark Arcade building, designed in 1871 by Frederick C. Withers (partner of Frederick Law Olmsted and Calvert Vaux) is in need of immediate help. This architecturally significant building was part of the original concept for Riverside, America’s first planned suburb, and predates the construction of even Riverside’s Township Hall. Furthermore, it is one of the earliest commercial arcades in the nation.

Since mid-August, 2008, the Arcade building has sat largely vacant and exposed to the elements, left abruptly in mid-renovation by a court order freezing the assets of its owners. Efforts of the Village of Riverside to convince the court-appointed receiver to release funds necessary to secure and heat the building were ignored.

After weeks of winter weather and the formal nomination of the Arcade building to Landmarks Illinois "Ten Most Endangered Historic Places" list, the Arcade was finally boarded-up, but the receiver has taken steps to shut off the heat and water, leaving this landmark without a working fire supression system.

I fully support the nomination of the Arcade building to Landmarks Illinois’ “10 Most Endangered Historic Places” listing. It is my sincere hope that this important landmark will not fall victim to arson, and that a reputable purchaser experienced in historic rehabilitation can be quickly identified.

It is a travesty to see the Arcade building boarded over and in such derelict condition, in the heart of a National Historic Landmark District.

Sincerely,

_______________
(Name)
_______________
(Address)

Sample Letter to National Trust for Historic Preservation

2008-11-18T09:38:00.001-06:00

[Ed. Note: Below is a letter you can use as a template to voice your support for nominating the Riverside Arcade Building to the National Trust for Historic Preservation's "11 Most Endangered Historic Places" List. You may modify it as desired. Letters are due by December 17, 2008.]

________, 2008

Aberdeen Marsh-Ozga
Preservation Commission
Village of Riverside
27 Riverside Road
Riverside, IL 60546

Re: Nomination of Withers’ Arcade to the National Trust for Historic Preservation’s “11 Most Endangered Historic Places” List

Dear Ms. Marsh-Ozga:

Please forward this letter on my behalf to the National Trust for Historic Preservation.

Riverside’s landmark Arcade building, designed in 1871 by Frederick C. Withers (partner of Frederick Law Olmsted and Calvert Vaux) is in need of immediate help. This architecturally significant building was part of the original concept for Riverside, America’s first planned suburb, and predates the construction of even Riverside’s Township Hall. Furthermore, it is one of the earliest commercial arcades in the nation.

Since mid-August, 2008, the Arcade building has sat largely vacant and exposed to the elements, left abruptly in mid-renovation by a court order freezing the assets of its owners. Efforts of the Village of Riverside to convince the court-appointed receiver to release funds necessary to secure and heat the building were ignored.

After weeks of winter weather and the formal nomination of the Arcade building to the National Trust's "11 Most Endangered Historic Places" list, the Arcade was finally boarded-up, but the receiver has taken steps to shut off the heat and water, leaving this landmark without a working fire supression system.

I fully support the nomination of the Arcade building to the National Trust's “11 Most Endangered Historic Places” listing. It is my sincere hope that this important landmark will not fall victim to arson, and that a reputable purchaser experienced in historic rehabilitation can be quickly identified.

It is a travesty to see the Arcade building boarded over and in such derelict condition, in the heart of a National Historic Landmark District.

Sincerely,

_______________
(Name)
_______________
(Address)

Join the Arcade Building Rally (11/26 at 3:30 PM)

2008-11-17T12:31:00.000-06:00

[Ed. Note: This just in from Tom Palka, via our Facebook group.]

Please join us for a SAVE RIVERSIDE ARCADE rally on Wednesday, November 26, 2008 at 3:30 PM in front of the Arcade Building, 1 Riverside Road, Riverside, Illinois.

BRING SUPPORT SIGNS!! Photos will be taken and sent to area media, and to building management. We need your help!