Yorkville will get new school as gift

Grande Reserve: Developer to provide for $9 million building at no taxpayer cost

YORKVILLE — A developer here is joining forces with the Yorkville School district to build a new elementary school, scheduled to open in 2007.

The School Board Monday voted 6-0 to approve the agreement involving the district, the Grande Reserve development consortium and Castle Bank which will result in a school on a 20-acre school park site east of Kennedy Road in the north central section of the development.

The Board's decision capped months of negotiations between Superintendent of Schools Thomas Engler and the development consortium MPI.

"This is a win-win opportunity for everyone involved," said Art Zwemke of MPI. "The residents of Grande Reserve will have a new elementary school in their new community, and the school district is pleased that paying for the school won't be a burden on the on people who already live in Yorkville."

According to the agreement, MPI will provide some $4.3 million up front for the new school. Castle Bank will loan the district the $4.7 million for the remainder, with the 15-year construction note to be paid off through a combination of transition fees and land-cash funds generated from Grande Reserve.

"There are no tax monies involved," Engler said. "This funding arrangement provides us with a new $9 million school. This is a tremendous opportunity for the Yorkville School community. This arrangement could be a template for other districts and developers throughout Illinois."

Castle Bank was instrumental in providing the financing to make what school officials say is an "unprecedented" agreement.

"It is not often that bankers get the opportunity to be creative and serve the community in such a dynamic way," said Stan Free, regional president of Castle Bank of Yorkville.