Freeze on non-retail uses considered in Vernon Hills

A serious drop in sales tax has store-heavy Vernon Hills considering a measure that would prohibit filling vacancies with anything but retailers.

Trustees on Tuesday will consider a six-month moratorium on approvals relating to office uses in the major shopping areas along Townline Road, also Route 60, and Milwaukee Avenue, also Route 21.

The ordinance would apply even if a proposed office use normally would be permitted under current zoning.

And during the freeze, an analysis of the retail shopping areas in Vernon Hills could be done to determine how best to protect the retail tax base.

Trustees will consider both measures during their regular meeting beginning at 7 p.m. today at village hall, 290 Evergreen Drive.

"The concern is the conversion of retail space into nonrevenue-producing uses," said John Kalmar, assistant village manager.

"We want to basically freeze any changes in uses in the corridors."

Besides a downturn in the economy, the village has experienced a "disturbing trend" of offices, which do not generate sales tax, filling spots vacated by retail stores, which do, according to the proposed ordinance.

About 15 percent of the village's retail space is vacant, compared to an average of about 5 percent, according to Kalmar.

Vernon Hills does not have a municipal property tax and relies heavily on sales tax to pay for day-to-day operations. Trustees recently had to make several reductions and take other actions to offset a projected $2 million budget shortfall.

The goal is to protect the village's expansive retail base, which generates more than $1 billion in annual sales.

"What we'll be looking at specifically is ground-floor uses," Kalmar said. "If you are a second-floor office space... the resolution is proposed to say that's OK."

After the moratorium ordinance, trustees will consider a contract with Rolf C. Campbell & Associates Inc. to study retail versus non-retail uses along Milwaukee Avenue and Townline Road and make recommendations on how best to protect it. The contract would be for an amount not to exceed $22,000.

Campbell's last work for the village was a design study of the commercial area along Milwaukee Avenue fronting Gregg's Landing.