Wheeling itching to get started on Fresh Farms redevelopment
Wheeling village officials are considering providing $5.25 million in tax incentives to redevelop Fresh Farms International Market and shopping center on the southwest corner of Milwaukee Avenue and Dundee Road.
That includes $1.5 million paid upfront from increased property tax revenues collected through a special taxing district established for redevelopment, and $3.75 million in property and sales taxes rebated over 20 years.
The village board approved a preliminary planned unit development and site plans for the project in December. The board is expected to approve the redevelopment agreement at its April 27 meeting.
Though village officials agree tax incentives are necessary to redevelop the property, village Trustee Patrick Horcher objects to the village giving up 100 percent of future increased property taxes generated from the Fresh Farms redevelopment during the life of the TIF, which ends in 2019.
The village also would rebate 66 percent of the increased sales tax to facilitate the $26 million project.
"There's no debate that he needs financial assistance," Horcher said of the developer.
"The package that he's getting is going to consume all of the increment that he's going to generate during the life of the TIF. The fruit of one TIF development is supposed to go to assist the next project. It's like a continuum."
Horcher said the village has made similar deals with developers in the past, but the incentives are "getting out of hand."
"There has to be a public benefit to this (project), it can't consume everything it produces," Horcher said. "I don't like getting zero net. I do like that we'll be able to keep the stores in town."
Officials say the project will transform that corner into a more upscale shopping center that will improve traffic flow. It also would permit the existing businesses to relocate in the new retail center.
"It's the last piece of the puzzle for that major corner in the village of Wheeling that needs to be redeveloped in that Crossroads TIF," acting Village President Dean Argiris said. "The parking and the traffic flow there ... it's just a hodgepodge. It's beautiful what they are proposing there. The development plan is something you would see in Lake Forest."
The Fresh Farms redevelopment plan includes reconstructing all existing buildings on the site, more than doubling the size of the grocery store from 11,000 square feet to 31,000 square feet, and building a new 15,000-square-foot attached retail center.
Demolition and construction is expected to begin late fall with project completion within 18 months.
A future second phase would involve building a 4,000-square-foot bank and replacing two buildings near the corner of Dundee and Milwaukee currently housing the old Masonic temple and a spa.
The village will retain ownership of a small piece of that corner where it would like to eventually build a clock tower. A portion of village property will be used for Fresh Farms' parking lot, said Peter Vadopalas, director of economic development.
He added, as part of the redevelopment agreement, the developer must provide a $3.2 million security deposit guaranteeing reimbursement of village costs if the project isn't completed within construction deadlines.
The future tax benefits outweigh the village's investment, Argiris said.
"You think of the revenue that's being generated on that project, food and beverage, sales, real estate, gas and electric ... it's a win for all," he said.