Arlington Heights buys strip mall for $1.6 million
The Arlington Heights village board has agreed to spend $1.6 million to buy the Arlin-Golf Plaza strip mall on the village's south side.
"We need to move forward on this," said Village President Arlene Mulder at Monday's village board meeting. "I've heard from so many residents who want that corner cleaned up."
Ron Popp owns the strip mall and attended the board meeting. After the board voted to buy his property, he didn't exactly applaud. He simply stood up and walked out of the meeting.
"I could have leased those storefronts five times over," said Popp after the meeting. "I lost my savings on that. This money is going to the bank. For years the village said they were going to buy my property and never did."
Popp said he will lose $600,000 in the deal, which is why he originally wanted $2.2 million for the strip mall.
Popp bought the strip mall in 2000. Two years later, the village board declared his property, the vacant gas station and the entire International Plaza at Arlington Heights and Golf roads blighted and formed a special taxing district, called a tax increment financing district - or a TIF. The district allows the village to use the extra property tax revenue generated by increased property values to pay for certain redevelopment costs.
The money to buy the Arlin-Golf Plaza will come from the special taxing district, according to a village memo. The village is slated to close on the deal on Monday, Nov. 24, but is still waiting for an environmental assessment for the gas station and strip mall.
"If you don't have the required environmental information we won't close," said Robin Ward, the village's assistant village attorney. "We'll close when we're ready."
There's no official deal yet, but Arlington Heights officials are currently working with a development company to demolish the gas station, Arlin-Golf Plaza and the Kitakata Japanese restaurant and build a water fountain and two retail buildings for tenants such as Panera, Corner Bakery or US Cellular.
Arlington Heights officials have been trying to redevelop the 35 acres surrounding the site - including the International Plaza - since 2002.
In May 2007, the village board terminated a plan to demolish the International Plaza mall and build a 174,000-square-foot SuperTarget store just east of the abandoned gas station. The deal would have reimbursed Target up to $19 million. The board cited a lapse of time due to pending lawsuits, increased costs and changing economic conditions as to why the deal fell through. So far, no other developer has submitted a plan to redevelop the area since Target backed out, said Charles Perkins, director of planning and community development.
When the plans for International Plaza stalled, the village board moved forward on the gas station. In July, the board approved a "purchase or condemnation ordinance" to demolish and clear the site.