Walmart's move in Round Lake Beach leaves a big void to fill
More goods are expected to be sold at a much bigger new Walmart in Round Lake Beach.
But its departure from the Mallard Creek shopping center at the northwest corner of Rollins Road and Route 83 will leave a big hole to be filled.
The Walmart store is larger than the former Dominick's grocery, the most notable current vacancy in the center, and about two-thirds the size of the entire available square footage. The last day it will be open for business is Oct. 27.
Complicating matters is that Walmart owns, rather than leases, the store. The remainder of the center, with the exception of two fast food restaurants, is owned by Midwest Real Estate Equities Inc., of Oakbrook.
"They're working with Walmart to purchase that building and that would give them more flexibility to market the entire center," said Rich Hill, Round Lake Beach mayor.
"What we'd like to see are some mid-size boxes and other retailers the village doesn't have."
No formal proposals have been presented. Midwest was not immediately available for comment.
"With the economy the way it is right now, nothing is pending," said Hill.
If the old Walmart sits vacant for more than a year, the village has the right of first refusal to purchase the building. That condition was included in the agreement that allowed Walmart to build its new store at Route 83 and Monaville Road, about a mile north of the old building.
The new store is expected to generate up to $75 million in sales compared to about $60 million at the original store. While that would provide a sales tax increase to the village it won't be a bonanza.
"Our sales tax is dropping," said Village Administrator Dave Kilbane. "This will kind of help but it's mitigating the reduction."
Whether the new store would siphon customers from surrounding stores is unknown. One school of thought is that the presence of a Walmart supercenter draws more customers to the area, benefiting other businesses as well.
"It will bring more people into the area which may bring trickle-down sales," said Rick Scardino, founder of Affinity Commercial Real Estate, which has several shops for lease in the area.
Scardino noted that Route 83 is not equipped to handle the increased traffic, however.
"I definitely feel there will be a bit of a bottleneck there," he said.
Planning is proceeding on possible solutions to the notorious jams at Rollins/Route 83 and the Canadian National railroad tracks, which are immediately west of the intersection.
More than 50 trains a day delay traffic and several shopping malls with multiple entrances are adjacent to the intersection.
"It's a pretty big deal, especially for the local businesses," said Shanna Coakley, head of the Round Lake Area Chamber of Commerce.
The Lake County Division of Transportation is hosting a public information meeting from 4 to 7 p.m. Oct. 22 at the Cultural and Civic Center just north of the old Walmart store.
The chamber will host a meeting at 11:30 a.m. Nov. 19 at the civic center.