New owners for oft-troubled 12 Oaks at Woodfield

The Michael Sparks era at the 12 Oaks at Woodfield apartments marked by a police blockade, lawsuits against the city of Rolling Meadows and the controversial flying of Mexican flags over the complex has ended.

Sparks confirmed Thursday he no longer owns the apartments, saying he probably lost $20 million on the property he bought about six years, but “I don't let myself dwell on how I feel about it.”

Mayor Ken Nelson said he is “pleased that chapter is over with. Between all the lawsuits and other issues, it was not one of the more pleasant times.”

One of the first things 12 Oaks' new managers did was take down the 12 Mexican flags that Sparks flew on 30-foot poles, said the mayor.

Sparks had said the flags, the source of many complaints to city hall, were a marketing technique to draw Hispanic tenants. He flew each one paired with an American flag on its own pole, and said he was displaying them properly.

An affiliate of Northbrook-based Pine Tree Commercial Realty is involved with the property, said Bruce Boruszak, executive vice president and general counsel for the company. But he declined to identify the new owners or disclose their plans for the site. The property, which includes nearly 700 units, is in receivership, he added

Valerie Dehner, director of community development for Rolling Meadows, said it was her understanding new owners had planned to take possession Dec. 1, but that has been delayed to Jan. 1.

A Pine Tree partnership had massive redevelopment plans for the property in 2007, but the recession quashed the idea. Sparks predicted that economic conditions would not allow redevelopment of the 35-acre property for seven to ten years.

Sparks said that besides the Pine Tree partnership, the new ownership includes The Davis Companies in Boston. A spokeswoman for The Davis Companies could not be reached for comment Thursday.

City officials have met with several companies who might be involved in ownership or management, said Dehner. The manager hired by the receiver is slowly but surely addressing deferred maintenance and stabilizing the property, she said.

“We hope that whoever takes over the property will be equally or even more responsive and attentive to the property,” she said.

Sparks and the city reached agreement last spring in which he dropped lawsuits filed in 2008 after police blocked all but one entrance to the 20-building complex and stopped cars that were entering.

The short-lived blockades, which officials said were in response to resident requests for a stronger police presence, were removed soon after he filed suit.

As part of the settlement the city agreed to drop a special taxing district it had set up that included the development. Sparks said the one year that additional taxes were collected because of the Special Services Area cost him $612,000.