Revving up an economic engine: Palatine ready to invest $3 million in TIF dollars for four Dundee Road properties

Palatine village council members voted this week to authorize the purchase of four properties on Dundee Road near Rand Road for up to $3 million.

The four parcels, located at 1102, 1110, 1114 and 1122 E. Dundee Road, total 2.2 acres and are included within the village’s Rand Corridor Tax Increment Finance District.

The village plans to use TIF funds for the purchase.

Two of the parcels are vacant and have attracted trespassers, Village Manager Reid Ottesen said. The others are occupied by two tenants, the El Rey del Pollo Asado restaurant and Hertz car rental.

Ottesen said the tenants will remain, while the two vacant buildings can be demolished. The village intends ultimately to sell to the private sector for development.

“Whatever point in time leases are up and the right development is ready, we can do something,” he said. “The two structures that have been problems for us we can demolish and not have to worry about the ongoing calls for service that we’ve had on those.”

The agreement is the result of discussions the village has had with members of the trust that owns the land.

“They were willing to consider selling the property at a very fair price based upon appraisals,” Ottesen said. “But they wanted to sell everything and not just parcel things off.”

He said developers have been looking at the corridor covered by the TIF, which has already attracted such businesses as Walmart and car dealerships.

With common ownership, the village can grant access across the parcels, making it more attractive for development.

When the district was created more than 20 years ago, assembling property was a challenge because of multiple owners.

“Rand and Dundee is our economic engine for what we do,” Palatine Mayor Jim Schwantz said. “We’re certainly always looking to continue the development opportunities there.”

The matter was on the council’s consent agenda. Councilmember Joe Falkenberg, who represents the district that includes the parcels, said he supports the purchase.

“We’ve been looking at that property for some time, and strategically I do think it makes a lot of sense,” he said.

Under a draft purchase agreement attached to the ordinance, the village would put down $50,000 in earnest money and have 60 days after signing to inspect the properties, with closing targeted for Dec. 1.

szalusky@dailyherald.com