Hanover Square redevelopment finally wins approval

Months of delays, a frustrated developer and concerns over cost nearly toppled efforts to update Hanover Park's Hanover Square Shopping Center.

But the project, which calls for up to $4.75 million in village-backed tax increment financing, narrowly won approval in a recent vote that required Mayor Rod Craig to serve as the tiebreaker.

"We've stayed with this for 14 months because this is a terrific project in a down market and a good project that enhances the village's image and brings in tenants," said Bob Carrane, president of Northfield-based Exmoor Properties.

In order to get trustees on board with redeveloping the dilapidated 113,000-square-foot plaza at Barrington Road and Walnut Avenue, Community Development Director Patrick Grill helped work out a deal with Carrane in which 10 percent of the TIF reimbursement will be held back until the board is satisfied the project is complete and authorizes its release.

Another added condition calls for at least 5 percent of the subcontractors Exmoor Properties hires be based in Hanover Park, provided they're the "lowest responsible proposals." The developer also has to advertise locally through newspapers and online.

Despite the new guarantees, Trustees Joseph Nicolosi and Lori Kaiser voted no, saying they wanted more time to read the amended proposal. The third dissenting vote came from Trustee Toni Carter, who thought $4.75 million in TIF funds was excessive.

Corporate Counsel Bernie Paul explained TIF money is performance-based and that several years could pass before the property generates the necessary revenue to pay Exmoor Properties. In a TIF district, property taxes paid to local governments are frozen and the increased revenue resulting from occupied buildings and rising property values goes toward development. Grill recommended approval, saying the expected TIF revenue exceeds the amount being requested.

The redevelopment must start by June 1, 2010, though Carrane said he hopes to begin much sooner. He said construction will take between 18 months and two years.

Hanover Square is home to tenants including Norbert Pools, Dino's Foods and other retailers. The project calls for the closed Shires Restaurant and hot dog stand to be razed. The facade and mechanical system will be upgraded, and the center will get a new roof, parking lot, lighting, signage and landscaping.