Arlington Heights gives developer more time for International Plaza overhaul
The developer working on the long-awaited redevelopment of International Plaza in Arlington Heights has until to the end of 2016 to finalize plans for the center, which likely will include a large grocery store as its anchor.
On Monday, the Arlington Heights village board granted Steve Leonard, developer with Strategic Real Estate Services Corp., a 14-month extension to come up with a redevelopment agreement for the almost 80-acre site near the intersection of Golf and Arlington Heights roads.
The site was the subject of Tax Increment Financing district disputes and lawsuits for several years. Those lawsuits have now been settled and last year TIF 4, where the area is located, was extended 12 years to reset the clock for development.
Leonard said the project is moving forward slowly, but surely, and construction crews could be on site by the end of next year.
"We are cautiously optimistic about the progress we've made, although we have a long way to go," Leonard said. "In these types of very high-profile and expensive deals, everything needs to be right before people move forward."
The anchor of the new shopping center likely will be a 70,000-square-foot grocery store. While there is a specific grocery store in talks for the project, Leonard said he won't be able to name the store until the deal is finalized. He hopes that will happen by the end of the second quarter in 2016.
"It is a store Arlington Heights will be very happy about having," Leonard hinted. "It's worth waiting for."
The rest of the site is expected to house several restaurants, including fast-food locations on the four outlots of the property, as well as potentially a pharmacy or convenience store. Leonard said there are a number of interested retailers lined up for the project once it starts moving forward.
The current shopping center, International Plaza, would be demolished and a renamed center would be built in its place.
"It is functionally obsolete at this point," Leonard said of the horseshoe-shaped design of International Plaza. "It has been for years, which is one reason it has been so highly vacant."
There are still a number of businesses operating at International Plaza, including an X-Sport Fitness and a number of restaurants.
"We would work very closely with those businesses for relocation purposes and make it as seamless as possible to facilitate the relocation," Leonard said.
The plaza's current owner has not yet signed off on any redevelopment plan, but Leonard believes that eventually will be the case. There is always a possibility for eminent domain if the two sides cannot come to an agreement, but Leonard said he does not expect that to happen here.
"Eminent domain is not our first choice, it is always a last choice," he said.
Target was in talks about a decade ago to open a store on the site, but is no longer involved with the project and is not opening any large-scale stores in the Chicago-area right now, Leonard said.
Leonard has been working on the project at International Plaza for 15 years.
"I feel passionately about this intersection. I feel strongly about the process and the people I've been involved with," he said. "I'm so appreciative of the confidence the community has bestowed upon me by giving me the designation and extending it. Now it's about getting to the finish line."