Developer says he wants to build shopping center in Volo
While Lakemoor officials pursue a Woodman's Food Market for the busy southwest corner of routes 12 and 120, a developer says he wants to build another large retail project across the street in Volo.
Orput Companies Inc. has acquired 90 acres nearby between Gilmer Road and Route 12 and announced its intent to pursue a regional retail center on the long-idled property.
Developer Greg Orput said he is in talks with two big-box tenants, both of which offer a "significant grocery component" as the anchors for Volo Village Marketplace, a 525,000-square-foot center that would also include senior and multifamily housing.
Detailed plans have not been presented for review, public hearing or other action in Volo, but Orput said the market has thawed enough to rekindle interest from retailers.
"There's so much activity in the area, it makes sense to make the public aware there is another development out there," he said.
Orput, whose company is based in Rockford, said he has a history with the site and was involved in 2005 with a partnership that was pursuing a Target-anchored retail center of 750,000 square feet. The recession in 2008 "took the wind out of everybody," he said. When the land became available late last year, he took it.
The new plan is "completely different" than the original version, Orput said, and would involve a more traditional shopping center facing Route 12 rather than being oriented toward Gilmer.
Despite a protracted recovery from the recession, Volo has averaged more than 100 new home permits each year and is outpacing other areas, Orput said, and there is a demand for commercial development.
That village has made a significant investment to capture the next wave of retail and residential development, he asserted, noting sewer, water and other utilities are in place.
Meanwhile, Lakemoor officials are frustrated in attempts to settle a lawsuit brought by Wauconda Township, Wauconda Unit District 118 and the Wauconda Area Library District involving the southwest corner.
They said Orput's observation of available utilities at his site reinforces their argument.
"He basically solidified what we've been saying," said Matt Dabrowski, Lakemoor's director of community and economic development. "He's been part of this group for 10 years, and even with water and sewer they haven't been able to attract a big-box store."
Lakemoor contends development will never occur unless utilities are extended to the Woodman's site. However, extending sanitary and storm sewers, water, electric and gas, and road improvements for the first part of the retail development will cost $9.5 million and preparing the entire 74-acre site will cost $15 million, according to the village.
Lakemoor has designated the area as a tax increment financing district, a mechanism that for up to 23 years redirects property taxes that would have been distributed to the taxing districts from the improved value of the property to pay for that work. The three entities say the farm field doesn't qualify for a TIF district and the designation will have a "severe financial impact" on them. They say commercial development will occur there without or without the special taxing district.