Lake in the Hills offers incentives to woo businesses

Lake in the Hills is trying to make it easier for businesses to locate or expand there by streamlining its permitting and licensing process and offering economic incentives, officials said.

The village recently approved a financial assistance package for a new restaurant to help with exterior improvements. It stems from an incentive policy adopted last year to help promote new investment from restaurants and independent small businesses looking to locate in areas where existing buildings require upgrades or remodeling.

Woods Creek Tavern, which opened in early September at 251 Randall Road, will receive a refund from the village of 50 percent of sales tax receipts for four years or up to $69,700.

Tavern owners originally had requested $169,000 to help cover the cost of renovating the former Applebee's restaurant, the parking lot and landscaping.

Lake in the Hills offered a similar incentive to Costco, which opened July 2004 along Randall Road, granting a $1.6 million reimbursement from sales tax revenues to build the 136,000-square-foot store. The grant helped offset costs associated with preparing the site for development, including significant grading work and construction of a large retaining wall.

"To aid the continued commercial growth in our village, we have lowered a critical development fee," Village Administrator Gerald Sagona said.

Water tap-in fees for commercial and residential development also have been cut by 19 percent after reviewing what neighboring towns are charging, officials said.

"We saw this percentage reduction as a way to continue to help development efforts in Lake in the Hills and still allow for water projects to be funded," Sagona said.

The goal is being competitive and proactive in wooing potential businesses away from neighboring communities, said George Hahne, the village's economic development coordinator.

"We're trying to assist everyone who comes to us with an interest in being in our community," said Hahne, who has been attending regional economic development and retail conferences.

Lake in the Hills had a booth at the three-day International Council of Shopping Centers conference held earlier this month at Navy Pier.

"We actually had 60 people visit our booth," Hahne said. "It hasn't been that exciting since the recession started."

Video gambling has been expanding in town with four restaurants, including Woods Creek Tavern, now approved to operate machines.

There also has been "significant interest" in the vacant Dominick's property at the northeast side of Randall and Algonquin roads, Hahne said

Duluth Trading Company, a men's and women's clothing and outdoor apparel store, recently approached the village expressing interest in potentially opening its first Illinois store, which would be a coup for the village, Hahne said.

"Certainly, they love the fact that we are a town that has green space," Hahne said. "They also like that the intersection of Randall and Algonquin has 70,000 cars pass through it each year. It's one of the busiest intersections in the state."

Hahne said the village has a lot going for it with concentrated retail areas and plenty of green space.

The village has a number of commercial corridors - Algonquin and Pyott roads, Randall Road north of Algonquin Road, areas along Rakow Road north of Lake in the Hills Airport, and sectors along Route 31 - with existing spaces requiring significant retrofitting.

Lake in the Hills also recently ranked third on NeighborhoodScout.com's list of the 100 Safest Cities in America with 25,000 or more people based on the number of property and violent crimes per 1,000 residents.

"It's a very nice place to live," Hahne said. "If you're interested in Lake in the Hills ... come and talk to me."