Vernon Hills may tap retail expertise

Despite being a regional shopping destination, the turnstiles might not always be whirring as rapidly in Vernon Hills.

Led by Mayor Roger Byrne, village leaders want advice on what might work best for new construction or to fill vacancies while honing a strategy to shore up and improve retail choices in a tough economy.

Byrne recently said the idea occurred to him after encountering several local residents at the recent International Council of Shopping Centers conference.

"We have some very interesting talent in town. We would try to cultivate it and form an ad hoc committee," he said.

Noting that some big retail projects in other areas are on hold, Byrne said it couldn't hurt to tap the expertise of local commercial real estate pros to help keep the retail engine humming.

"We just have to keep it going but it's a very competitive market," he said. Long-stalled plans for an expansion at Westfield Hawthorn mall also have been a concern for the village.

Since it has no municipal property tax, Vernon Hills relies heavily on sales tax, which accounts for about half the revenue for day-to-day operations.

The most recent figures available show that for the one-year period ending April 30, the village's share of sales tax amounted to more than $11.6 million. Of that, more than an $1.4 million was rebated to CDW Corp. as part of a long-standing agreement, however.

Those figures were nearly exactly the same as the previous one-year period.

"In this economy, not to be declining or declining precipitously is a good thing," said Finance Director Larry Nakrin. He said the village could get a boost from the new Lowe's home improvement store, which is expected to generate about $425,000 a year in sales tax for the village.

Comings and goings are nothing new in the retail industry but village leaders also want to know what might be best to fill gaps that arise and whether there is a call for higher-end merchants.

Trustee Jim Schultz said a focus on disposable income and buying habits of potential shoppers would be helpful. Will foreclosures, for example, have an impact on the village's economic health?

Schultz says some residents, "think we should have Deer Park over by Gregg's Landing," referring to a developing shopping center anchored by Lowe's.

"We need to either justify to the retailers this community has a significant amount of disposable income to support the Nordstrom's or whatever ... or it's a Costco kind of town," he said.

Getting that detailed of data could cost six figures, he acknowledged, and the board isn't ready to go that route. A first step could be for staff to deal more directly with retailers.

"Some of it (seeking retail advice) is generated by some people saying, 'Why can't we have - fill in the blank,'" said Village Manager Mike Allison.

"The board told me as part of my evaluation, 'Let's look at this stuff in a really detailed way and see if there are things we might do.'"