Developer says apartments key for Lake Zurich Kmart site
A real estate company executive says apartments are necessary to help boost the retail portion of a development proposal for the vacant former Kmart site on Rand Road in Lake Zurich.
Lake Zurich Trustee Jeffrey Halen raised concerns about apartments being part of Garden Homes Management Corp.'s tentative plan for the roughly 7-acre site when the company's development director, Mark Hoffman, appeared before the village board for an informal courtesy review Monday evening.
"One of the questions that I've received from people in regards to the apartments, 'Are there going to be high end, low end, Section 8?'" Halen said as he quizzed Hoffman about the proposal. "There's a concern of exactly what it is going to be or the target market for filling these (units)."
Hoffman said the long-vacant Kmart would be razed to accommodate 175 apartment units spread over three, 4-story buildings and 21,615 square feet of retail space. He said the apartments would benefit existing businesses surrounding the Kmart property, as well as the new retail area Garden Homes would build.
"I think a residential area can help energize and create a spark for more people to shop there," Hoffman said. "You have a captive audience of X number of people. And the whole concept of mixed use really generates from a new way people are finding they like to live. They want an apartment. They don't want to pay real estate taxes. They're not interested in maintenance whatsoever."
Hoffman said residents who can afford houses would be attracted to the apartments if they are new to Lake Zurich and want to judge the village before making a significant financial commitment. Others would enjoy having a variety of stores and Paulus Park within walking distance, he said.
During another line of questioning by Halen, Hoffman said retail users all want to be in a visible part of the property near Rand Road. He said the apartments would be constructed in the rear of the site.
Hoffman said the early plan is to have a couple of "nice" restaurants with outdoor dining. He said stores would be adjacent to the restaurants.
Garden Homes would offer one-, two- and three-bedroom rental units from 910 to 1,680 square feet. Hoffman said each tenant would receive an assigned indoor parking space.
Kmart operated on Rand Road for about 20 years until it closed. Lake Zurich was part of Kmart's closure of 283 stores throughout the country in 2002, including 14 in the Chicago area.
Five of six Lake Zurich trustees, with Halen as the lone dissenter, found Garden Homes' proposal worthy enough to enter the village's formal approval process. Garden Homes' next stop will be before the advisory planning and zoning commission.
Hoffman said Garden Homes has owned the Kmart property since 1987. He said it hasn't been for a lack of effort the company could not find a taker since the Kmart shuttered 14 years ago.
"I've had a number of retail tenants negotiate with me for this space," he said, "and for one reason or another, it hasn't worked out."