Hoffman Estates upbeat about future after Vegas conference
Hoffman Estates officials said they saw signs of growing interest in retail development when they attended an annual real estate conference last month in Las Vegas.
“The tone of the gathering was more optimistic than the last year or two,” Hoffman Estates Assistant Village Manager Mark Koplin said. “So I think that bodes well for the economy in general.”
The International Council of Shopping Centers’ RECON unites municipal officials with property owners, developers and officials from corporate restaurant and retail chains. It was held from May 22 to 25.
Village Manager James Norris noticed more attendees than in past years, when the economy not only stifled development plans, but also hamstrung municipalities from sending large groups.
“So if that’s any indication it looks like the retail/retail development/brokerage community is thinking things are starting to improve,” he said.
In years past, the village would have more than 50 appointments to talk development over the course of the three-day conference. That number has dipped to about 30 in recent years.Hoffman Estates Mayor William McLeod and Trustee Karen Mills attended, along with Norris, Koplin and Economic Development Director Gary Skoog.
The village#146;s biggest catch from past dealings in Vegas remains the Target development off Route 59 and Higgins Road. Officials arrived this year with the same priorities as in recent years: A hardware store and a grocery store for the village#146;s west side.
While village officials were reluctant to announce any deals, Norris did say a vendor interested in installing battery charge stations for electric cars spoke with the village. The field is so new, the village remains unsure what the stations could offer in terms of generating sales taxes.
#147;How many Chevy Volts have you seen on the road?#148; Skoog said.
Many developers asked about that status of Sears Holdings Corp. The company is exploring a move from Hoffman Estates after tax incentives expire next year. That would cost the village more than 6,000 employees, which could convince retailers to stay away.
Another detractor for retailers is Cook County sales and property taxes, Skoog said. Many times the difference between locating a business in Cook County versus locating elsewhere is the difference in paying rent.
#147;It makes it very difficult,#148; Skoog said.
What they didn#146;t come away with was an indication of what Meijer planned for its site off Barrington Road near I-90.
When Meijer bought the land more than six years ago, the chain was supposed to be an anchor for a shopping center. However, the development still lacks a big-box retailer to anchor the site and draw shoppers to the smaller businesses that have already moved in. The result is a high vacancy rate, with existing businesses owners saying they#146;re struggling.
The village board on Monday night, desirous of attracting any tenant to the development, voted to allow a medical office to move in. Even though the use isn#146;t ideal for a retail development, any new business will help, village officials reasoned.
Meijer did not have any representatives at the Vegas conference.
Village officials used the conference to follow up on projects approved by the village but stalled, mostly due to a lack of financing.
For example, the village is still awaiting news on the off-track betting parlor that was scheduled to start construction in the spring near the Sears Centre Arena. The ownership behind the Saddle Room received a year extension on the permits in January, as they struggled finding credit for construction. But Norris said through the grapevine at the conference village officials heard the Saddle Room had finally secured money. There#146;s still no official confirmation, however, and construction has yet to start.
Another obstacle to completing deals is that so many properties are in foreclosure. With the bank or other entity holding the note on a property, it makes for a confusing dynamic, making an already lengthy process of obtaining agreement among all parties even longer.
#147;Let#146;s say you#146;re a tenant that wants to go in there: Who are you dealing with?#148; Norris said.