Hanover Park buys aging shopping center for $2.8 million

Tired of waiting for another developer to come along and invest in an aging strip mall, Hanover Park officials have decided to take control of the stagnant situation.

The village last week closed on a $2.8 million deal to acquire the Hanover Square Shopping Center from the Pacini Group LLC, Hanover Park Mayor Rod Craig said.

“It needs a lot of work,” Craig said. “We’ve been trying to do something about it for years.”

Several vacant storefronts dot the dated 113,000-square-foot center, located on Barrington Road between Maple and Walnut avenues.

Compared to a 2009 deal that eventually unraveled, the purchase price is a steal for the village. Northfield-based Exmoor Properties was prepared to spend more than $9 million buying the property and another $6.6 million improving it in exchange for $4.7 million in tax increment financing.

“Unfortunately, the market went sour after that occurred and (Exmoor) did absolutely nothing, so we terminated the agreement,” Craig said.

Officials believe the purchase was an appropriate use of TIF funds. In a TIF district, a common tool to promote economic growth in stagnant areas, new tax revenues generated can be used to fund infrastructure improvements and other development costs in the district.

A specific plan on how to go about improving Hanover Square isn’t yet in place, but the village has hired Schermerhorn and Co. in Evanston to manage the center and help prioritize ideas.

Craig said that in addition to updating the overall facade, much more lighting is needed.

“It’s way too dark at night,” he said. “It’s to the point that people don’t want to go there.”

Village officials, Schermerhorn representatives and existing retailers will meet Wednesday night at the Hanover Barber Shop to discuss possible changes.

One of those longtime businesses is Dino’s Finer Foods, which is looking to double its facility space to 40,000 square feet, Craig said. He’d also like to see Norbert Pools return, as well as open a Worknet center in collaboration with Elgin Community College and Harper College to help the unemployed.

Craig hopes the village eventually will sell the center back to a private developer at a sizable profit.

Village Manager Ron Moser said improving Hanover Square is vital because of its proximity to the future Village Center, a planned development calling for a variety of retail, restaurant, residential and commercial uses.

“We believe that improving it will further development in the area,” Moser said.