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Rosemont plans hotel, restaurants on vacant land near Fashion Outlets

Rosemont is planning a 150-room hotel, office headquarters building, retail shops and restaurants on vacant property across the Tri-State Tollway from the Fashion Outlets mall, village officials announced Wednesday.

Development of the 16 acres south of Balmoral Avenue and west of the tollway has been sought by village officials since they began buying and demolishing former light industrial buildings there six years ago. About 10 such buildings have come down in that time.

On Wednesday, Mayor Brad Stephens announced initial plans for redevelopment of the three-block stretch, which would build upon development in recent years of the mall and entertainment district on the east side of I-294.

The proposed hotel is still to be named but will have a national brand flag. The ownership group behind it owns $250 million worth of hotels in the Midwest, Stephens said.

The hotel developer told Stephens the land is probably the most desirable hotel pad in the Midwest because of its proximity to O'Hare International Airport. It would become the second closest hotel to the airport, after the Hilton Chicago O'Hare.

A 45,000-square-foot office building will serve as the headquarters for a company still to be announced, Stephens said.

Another 45,000 square feet would be dedicated for restaurant and retail uses. About 60 percent is expected to be used for retail space and 40 percent by restaurants, the mayor said.

About five acres will remain undeveloped for now, to be used for parking, until possible future development necessitates the construction of a parking garage, Stephens said.

The village board is expected to consider redevelopment agreements with as many as five different groups involved in the project at its Aug. 12 meeting, paving the way for construction to start as early as October.

Stephens said the village likely will give the land to the developers, not unlike past practice with properties in the entertainment district.

The property is part of the 25 acres Stephens pitched to the Chicago Cubs in March 2013 in an attempt to lure the team to Rosemont while it was negotiating with Chicago over renovations to Wrigley Field.

While land south of Balmoral is up for redevelopment, the other 10 acres of village-owned land north of Balmoral will remain vacant for now, Stephens said.

The proposed redevelopment area is located within the village's fourth tax increment financing district, so revenues generated by the district could be used to pay for utility relocation, stormwater work and street improvements.

On Wednesday, the village board agreed to pay ComEd $173,610 to relocate electric lines underground in the proposed redevelopment area.

Pearl Street, which runs north and south through the space, will be shifted west, closer to the Metra tracks, to create a square space on which to build. Reconstruction of the street is expected to begin next month.

The new development could become a destination for drivers exiting I-294 at Balmoral. The village helped pay for that off-ramp, which opened in 2011.

And those coming from nearby Mannheim Road will have an easier way to get to the new development, once construction of an underpass from southbound Mannheim to eastbound Balmoral is complete. Construction on that project is targeted for completion in November.

"Transit drives development all the time," Stephens said.

While officials hope developers could start construction before winter, others may wait until the spring. Stephens expects the space to be fully developed by the summer of 2017.

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