Vernon Hills trying to protect sales tax base

Vernon Hills leaders remain united in protecting the village's sales tax base in the face of a proposal to redevelop a long-vacant building.

"I want you here, but I want you in a different place," Trustee Cindy Hebda told would-be developers of the former Circuit City store, 551 N. Milwaukee Ave.

Milwaukee Avenue Development Partners LLC wanted to convert the 34,000-square-foot building, which has been vacant more than a year, to a multi-tenant medical office.

Fearing a growing takeover of vacant sales tax-generating spaces by noncommercial uses such as offices, the board in January established a moratorium on non-retail uses along the Route 60 and Milwaukee Avenue commercial corridors - a first for Vernon Hills. It is scheduled to last six months, until July 19.

After concerns from several property owners, the moratorium area was studied further and it was determined that most of the sales tax-producing areas were concentrated close to the intersection.

Trustees decided to tighten the boundaries and reduce the number of affected properties. Another change approved Tuesday allows non-sales tax uses to replace the same kinds of uses in the moratorium area.

The village board initially took the action because Vernon Hills relies heavily on sales tax from an expansive commercial corridor for day-to-day operations and does not levy a municipal property tax.

"In this community, it's imperative we protect our sales tax base," Mayor Roger Byrne said.

In early February, the board informally agreed to exempt Circuit City and the former Tweeter building, 700 East Townline Road (Route 60).

The Vernon Hills Town Center retail/residential project at Route 45 and Milwaukee Avenue also was exempted. The owner of that project is seeking to reduce the total amount of retail space and move an approved bank use from one location on the property to another.

Tweeter is being renovated for a Verizon Wireless store and a Qdoba Mexican Grill. It remains exempt because construction preceded the moratorium, according to John Kalmar, assistant village manager.

Developers of the Circuit City had offered to pay the village an undisclosed amount of money in lieu of sales taxes, but that did not sway trustees.

"It is more important we retain these keystone properties as sales tax generators," Trustee Jim Schultz said.

He suggested the upper floor of the Aspen Pointe shopping center or buildings along Lakeview Parkway as better possibilities for medical offices.

"These locations along Milwaukee Avenue and Route 60 are where we need to make our bread and butter," he said.

Ricky Nelson, vice president of Milwaukee Avenue Development Partners, declined Wednesday to discuss the situation.