Mount Prospect approves $40 million town center project

The Mount Prospect village board on Tuesday night, in a 5-1 vote, approved a $40 million town center project consisting of two seven-story buildings and one five-story building on a 2-acre site downtown.

The board voted on the overall plan and zoning, which is one of the last steps for the project that has more than 100 condominiums and between 30,000 and 40,000 square feet of retail and restaurant space.

"I see this as something very exciting," said Trustee Michael Zadel. "It was important for me that the architecture said 'wow.' It addresses all the needs that we are looking for. It is a product that will last throughout time. I think it will be very positive for this community."

Council chambers were filled with many people standing against the walls, waiting for the vote, which came at about 1 a.m. Some residents had complained the project was too dense and didn't have enough parking spaces. Others told the board they thought it would help downtown businesses.

After more than six hours of discussion and comments from residents, the board made its decision.

Northbrook developer John D. Heimbaugh, president and founder of Heimbaugh Capital Development Corp., had proposed the plan, which includes $10 million in help from Mount Prospect.

In light of the affirmative vote, the village will draw up a redevelopment agreement outlining the financing, which the board must approve also, village officials said.

About $3.5 million of village money will come in the form of help with land acquisition and $5.4 million in tax increment rebate funds, all contingent upon Heimbaugh securing a loan and signed lease agreements from retail tenants, village officials said. In a tax increment financing district, a municipality uses money from the increased property tax revenues with redevelopment to help fund it.

The dissenting vote came from Trustee Paul Hoefert, which came as no surprise as he'd indicated he could not support it in past meetings. He had stated that the village board should consider other proposals for a project of this magnitude. He also questioned whether Heimbaugh could fill the project's retail space.

"…If this Heimbaugh development moves forward, I believe it will be an abysmal failure, financially, aesthetically and functionally." Hoefert said.

Village officials have said Mount Prospect is looking at Heimbaugh's proposal since he's already a major property owner in the area slated for redevelopment, instead of requesting proposals from other developers at this time.

"We have no right to reject his proposal out of hand," said Trustee Arlene Juracek, who added that Heimbaugh owns more than a third of the property in the small triangle. "What we have here is the most complete and well thought through proposal from any of the property owners there."

The development area is locally called the "small triangle" and is bound by Northwest Highway, Route 83 and Wille Street.

Heimbaugh gained control of downtown properties late last year when Mount Prospect dentist Errol Oztekin sold all of his holdings in the triangle, except the Blues Bar, to Homebrook Prospect LLC, which lists Heimbaugh as its agent.

In 2006, Oztekin had unveiled plans to develop the triangle into a dining and entertainment hub, but only completed the Blues Bar.

Heimbaugh has control of four parcels in the triangle at 15 W. Busse Ave., 19 W. Busse Ave., 22 W. Busse Ave. and 108 S. Main St.