Arlington Hts. panel sees Sheraton's future: luxury apartments, retail
The new owners of the vacant Sheraton Chicago Northwest in Arlington Heights revealed more details Wednesday about plans to convert the hotel into luxury rental apartments.
In the first phase of the Arlington Downs development, the original 427-room hotel would be converted into 170 to 180 luxury apartments with sizes of 550 square feet for a studio, roughly 950 square feet for a one-bedroom, and 1,400 square feet for a two-bedroom.
“It's a substantial reduction in density and population of the hotel,” Carl Groesbeck of Argent Group, representing the owners, told the village's plat and subdivision committee.
Future phases of development call for retail and restaurant uses, recreational options replacing the Coco Key water park, a 300-room hotel and possibly additional residential buildings on the roughly 24-acre site adjacent to Arlington Park Racecourse.
“We would like to see some level of affordable housing provided in the later phases,” village development planner Matthew Dabrowski said.
The developer proposes putting in a private street through the property connecting Euclid Avenue and Salt Creek Lane, creating pedestrian-friendly walkways, and separating the water park entirely from the residential portion.
Village officials won't be sad to see the water park go.
“The water park has never made sense to me,” committee member Lynn Jensen said.
Groesbeck said it's likely that the water park, built at a cost of $25 million, won't remain part of the final development.
The project is at least 18 months away from starting with the Sheraton hotel rehab and residential portions being developed first.
“We are creating the anchor with the hotel tower,” Groesbeck said. “One of the reasons we are pushing the residential part (is) that's a very good sign for the rest of the retail market.”
Development of retail, restaurant and entertainment venues and the hotel would follow and may take five years, Groesbeck said.
“It may actually happen sooner, but there is a lot to get done,” he said. “What we want to bring is the quality of retail in this site, which we think will be the longest lag. We don't want to just settle for any retail.”
The proposal drew praise from committee members.
“I think it's a great project,” member Bruce Green said. “I'm excited just because this place has been sitting for way too long.”
One committee member questioned what portion of the development plans would change based on what happens with proposed legislation calling for slot machines at Arlington Park.
Groesbeck said the legislation wouldn't affect the project either way.
Committee member Robin LaBedz asked how the developer would market the project, which seemed like a transit-oriented development without a nearby transit hub.
“Why would I want to live here? It just feels like this is an out-of-the-way spot,” she said. “You can't expect people to walk. We don't walk in the suburbs.”
Groesbeck said the proposed development is a lifestyles community that would cater to the transient population in Arlington Heights.
Preliminary development plans will go before the village plan commission for review in coming months.