Des Plaines mayor touts 'banner year' for economic development
Des Plaines Mayor Matt Bogusz Thursday touted big building projects as evidence of a "banner year" for economic development, in his annual Address to Business.
Bogusz pointed to significant commercial projects, such as a Mariano's grocery store and redevelopment of long-blighted property near O'Hare Airport, that are in line for incentives from the city. And he noted proposed residential developments in or near the city's downtown that he hopes will bring density and help boost retail business in the area.
"Local developers are choosing Des Plaines," the mayor said in an address at a Des Plaines Chamber of Commerce breakfast. "Our construction activity is up because we are proving to be a better value, a better business partner, and we're putting our money where our mouth is."
At the forefront of the mayor and city council's agenda is a proposed $28 million project at the northeast corner of Mannheim and Higgins roads that calls for a five-story, 120-150 room hotel, gas station with convenience store and car wash, and free-standing restaurant, potentially a Bennigans.
The city, which owns the 4.5 acres of vacant land, plans to sell it for $1.5 million to developer Pearlshire/Bask Development Group. The city has also offered $7.5 million worth of incentives in the form of tax increment financing dollars, and rebates for sales and hotel tax revenue.
If the project comes to fruition, it would accomplish city officials' long-held goal of developing the land.
The city borrowed $10.4 million to buy the land and pay for redevelopment costs years ago, but several proposed projects fell through, and the land has remained undeveloped. Today, the bond debt has grown to $20 million.
But if the latest proposal goes through, the city could be in line to receive $39 million in property tax, fuel tax, food and beverage tax, and hotel tax revenues through 2038.
"We bought it. We took on the risk," Bogusz said. "Now the incentive that we're providing to bring this development on site puts all the risk on the developer. If they don't earn, if they don't do their job, if they don't make their commitment, they don't get the incentive."
"I think we're setting this project up for success."
The city council has been talking about the project behind closed doors for months - and in public for the first time last Tuesday - but aldermen decided to delay a vote on it until Feb. 1 to allow more time for public comment.
If approved, construction could begin in June and be complete in March 2017.
Another big project is the proposed Mariano's on the northeast corner of Golf and Mount Prospect roads, expected to be built by early 2017. As Bogusz spoke Thursday morning, demolition crews were taking down old buildings on the former Motor Coach Industries bus company site.
The city is also providing Mariano's with sales tax rebates as an incentive.
"This is going to be a significant development at that corner and should dramatically change the way Des Plaines presents itself to the community in an east-west fashion," Bogusz said.
The mayor's Power Point presentation also noted five residential projects approved by the council in 2015. Notably, the mayor cast tiebreaking votes to approve zoning for two of them: 58 townhouses at 783-841 Lee St., and 127 townhouses and a five-story, 270-unit apartment building on the site of the former Littelfuse property at 800 E. Northwest Hwy.
"We're finding the highest and best use for some of these properties and bringing development at a rate and in a fashion that we've never seen before," Bogusz said.