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City of Elmhurst purchased Pauli's for Hahn Street project

Published: Wednesday, May 22, 2013 12:53 p.m. CDT

ELMHURST – The City of Elmhurst will purchase the Pauli's Marathon and Auto Repair property at 260 N. York St. for $1.77 million.

The City Council voted, 10-3, this week to purchase the property after accepting the 30th amendment to the sales agreement.

"It's very obvious to me that the sellers – being Pauli's – were very willing to make a deal," 3rd Ward Alderman Michael Bram said.

Bram voted against the purchase because he thought the city could have gotten a better deal on the price.

"Twenty-percent above appraisal seems excessive," he said.

The property will become part of what has been known as the Hahn Street development project, which has been in the works for years but was delayed by the recession.

The city's proposed close date on the Pauli's property is July 10. Although Chuck Pauli will no longer store or sell gasoline then, he will be allowed to continue operating the repair station through March 31, 2014. During that time, Pauli will pay taxes and utilities, but not rent.

"There's a lot of better city protection in this deal than there was before," Bram said.

The agreement also provides for a $100,000 environmental escrow account that would be withheld from Pauli's proceeds, said Nick Peppers, an attorney for the city. How much of this account would actually be used to ensure proper environmental procedures take place when the gas station is taken down depends on phase two environmental testing of the site, which will take place within the next couple of weeks.

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