Hoffman strip mall owner wants to redevelop

Vacant commercial land could stay that way for a while in Hoffman Estates as developers put plans on hold.

"It's going to be a slower turnaround time than we all hoped," Village Manager James Norris said at a village economic development commission meeting Tuesday.

One example is the construction of the Prairie Creek amphitheater, postponed until more financing is found for the 8,900-seat, open-air music venue. Meanwhile, Famous Dave's eatery has backed out of plans to move into town, as its stock price dropped to an all-time low Tuesday.

The village will see another vacancy this month when the Menards at Barrington Square Mall closes. Other mall stores have sought ways to lure more customers but have struggled.

Keeping that in mind, mall owners want the village to establish a tax increment finance district for renovations. Joseph Caruso, who represents the mall's Dutch owners, said they're willing to invest $15 million to remodel the 230,000-square-foot center and demolish Menards but want some public assistance, which a TIF could provide by reinvesting some real estate taxes back into the property.

He said the mall was built in the early '70s and needs infrastructure upgrades. He hopes work could start in April, pending village TIF approval.

Caruso said they'd also look to upgrade tenants that wouldn't compete with retailers on the north side of town. He said they've been looking to renovate since 2003 when Menards was supposed to vacate. He acknowledged current economic woes make it terrible timing for the project.

"But we can't just sit back and watch the center go backward," he said.

A TIF freezes property taxes within a designated area. As the area increases in value, additional taxes collected go to pay for improvements within rather than to schools and parks. TIFs typically end in about 20 years and are supposed to boost land values, revitalizing the area and giving taxing bodies more revenue after the TIF ends.

There had been a proposal to bring off-track betting to the mall's bowling alley, but the village soured on that idea. Many area residents had objected to that plan, Trustee Karen Mills said.

Caruso said tenants have been notified of the proceedings. Other store owners couldn't be reached.