Olive Mountain co-owners Hasib Blan and Ahmed Saleh said Wednesday that Sherman Street Plaza developer James Klutznick has agreed to pay them $1 million, which includes purchase of the land and relocation costs.
The agreement came three months after Evanston City Council voted to begin condemnation proceedings and one month after the city unsuccessfully lobbied the state legislature to authorize quick-take condemnation of the Olive Mountain property.
“We had no choice – they threatened us,” said Olive Mountain co-owner Ahmed Saleh. “(Ald. Arthur) Newman (1st) said if we don’t accept the offer, he had other ways to get us out of here.”
Newman disputed Saleh’s description of the process, saying he became involved in the negotiations only to protect the interests of the Olive Mountain owners.
“They got a very good price,” Newman said. “I worked as hard as I could to get them a good price.”
Saleh and Blan’s parcel of land is needed for the proposed $110 million Sherman Plaza development, which would include a Sears department store, 135,000 square feet of specialty retail space, a senior luxury apartment building and a parking garage. If the development materializes, the city would avoid the cost of replacing its current parking garage on Sherman Avenue, a necessary measure that could cost Evanston taxpayers $20 million.
The city’s original appraisal of the Olive Mountain property was $405,000. The $1 million sale price is more than the city’s offer of $805,000 but still less than the Olive Mountain owners’ asking price of $1.5 million.
Although Blan said he is glad to have reached an agreement with Klutznick, he said he is unsure whether he will be able to find another affordable location in Evanston.
“We would love to be on Church (Street) if we can,” Blan said, “but we can’t afford to have the same set-up we have now.”
Blan said he and Saleh are considering two different properties in Evanston – one near Davis Street and Chicago Avenue and one next to the Roxy Caf
