Palatine Rand-Dundee corridor faces development challenges

The Rand and Dundee road corridors in Palatine — by far the village’s most lucrative stretch of sales tax generators — face significant challenges related to economic development.

Shallow lot depths, inconsistent zoning, stormwater management problems and limited buffers between residential and commercial areas were just a handful of issues outlined Monday by Deputy Village Manager Mike Jacobs, who was asked by council members to provide an overview.

They’re busy arteries: Rand Road in Palatine averages 35,900 daily motorists, while Dundee Road sees 33,050 vehicles. Together, businesses there combined for about $5 million of the village’s $11.2 million in 2010 sales tax receipts.

Despite the traffic, the council learned Palatine really is more of a bedroom community than a destination for the local workforce.

According to the 2000 Census, its daytime population dropped 17 percent to less than 55,000 people. Only Inverness and Long Grove saw a greater percentage of people leave during the day compared to nearby communities. That’s a far cry from Elk Grove Village and Schaumburg, where daytime populations jumped 93 and 45 percent, respectively.

Jacobs said that in order for Palatine to continue to attract businesses, the village is trying to be proactive with initiatives such as starting a stormwater drainage improvement project along Rand Road south of Old Hicks Road, as well as researching a possible new tax increment financing district and promoting the community to various trade shows and real estate brokers.

Officials are also working to head off decisions by outside agencies that could have an adverse effect on the corridors.

The most notable example is along Dundee Road east of Rand, where the Illinois Department of Transportation is looking to install an impassable median all the way to Baldwin. The council agreed with Village Manager Reid Ottesen’s assessment that the barrier will cut off traffic from retailers. Officials will likely pass a resolution next week that strongly opposes it and asks for help from state representatives.

“I just don’t think it’s a prudent use of taxpayer money and it’s only going to serve decrease revenues that are coming in,” Ottesen said.

Councilman Scott Lamerand suggested the village model future redevelopment efforts on the shopping center that contains the new police headquarters and Mariano’s Fresh Market. It took less than 30 months between Palatine’s acquisition of the land from Sears to the time they opened.