Parking lot, not retail space, to occupy Palatine property

Palatine officials have conceded that the part of downtown known as Block 27 won't be home to a mixed-use condominium and retail development in the foreseeable future.

Instead, they're moving forward with plans to build a 92-space parking lot on the eastern half of the site, which is bound by Wilson, Bothwell, Wood and Brockway streets. The council on Monday unanimously awarded A Lamp Concrete Contractors of Schaumburg a $208,657 contract to perform the work.

"Anything can happen, but we don't foresee any future development there anytime soon," Assistant Village Manager Mike Jacobs said.

The property was originally slated for Palatine Place, a five-story, 109-unit condominium and retail building. But economic conditions quickly halted Northfield-based Focus Development's project, which was approved in 2007.

With an anticipated completion date of early July, the new parking area will be a public, not commuter, lot. Sections of existing asphalt already accommodate some parking, so the village will see a net gain of 42 parking spaces. It will be accessed from both Wood and Wilson streets.

Palatine also owns and has kept up the vacant Mia Cucina restaurant building on the western half of the property. In the next couple of weeks, requests for proposals will go out so that developers can submit serious and thorough plans for the village's consideration.

"We'll be getting a very clear sense of who's interested in the building within a few weeks," Jacobs said.

The parking lot will be funded by proceeds from the downtown tax increment financing district. TIF districts capture additional property tax revenue as the value of a property increases. The money is used as a spur to encourage development instead of going to taxing bodies, such as schools, as it would without the creation of such a district.