Rolling Meadows eyes temporary hold on non-retail businesses

The city of Rolling Meadows is consideration a temporary moratorium on non-retail new businesses, like banks and medical clinics, saying the city needs to boost its sales tax revenue, which only retail sales provide.

The proposal will be discussed at the March 2 meeting of the Rolling Meadows Economic Development committee. From there, a recommendation is expected to go to the City Council on March 9, City Manager Sarah Phillips said Wednesday.

A moratorium, if put into place, would be too late to affect Northwest Community Hospital's decision to put a rehab or physical therapy service in the Jewel Plaza building that once housed Sears Hardware, said Phillips.

Phillips did not know a timetable for that project and hospital spokesmen did not immediately return calls.

The Rolling Meadows City Council also agreed to hire firms to study what types of development might work in the downtown area, especially around the former Dominick's store on Kirchoff Road, and what incentives could be offered. The money for the studies will come from tax increment finance funds.

A TIF district expires at the end of 2011, and any of the approximately $1 million remaining will be returned to area taxing bodies, Phillips told the council.

A market analysis would identify the city's buying power, what retail and services are missing from the downtown and what residents want to see there, officials said.

Goodman Williams Group of Chicago submitted an offer to do a three-month study for a maximum of $27,500. Next week the council will officially take up that contract and one from Kane, McKenna and Associates Inc. of Chicago for $5,000-$7,000 to study what financial incentives might be available to draw development.

The importance of retail businesses and the taxes they generate was driven home in Rolling Meadows when Sam's Club closed suddenly at the end of January, leaving a $600,000 tax hole in the city's budget.

Alderman Larry Buske was particularly adamant Tuesday night that he wants retail, not housing built in the downtown area.

However, Phillips said it is important to study what types of businesses the community wants and will support, and that the Dominick's site will probably have a housing component.

The two research firms will interview residents and local business people as well as public officials, said Phillips.

"There's no point marketing the site to businesses the community won't support," she told the council.

When asked if landlords would be upset about a moratorium on potential renters, Phillips said a moratorium would last a fairly short period of time.

In Vernon Hills, which placed a similar moratorium on non-retail businesses for six months, complaints and the threat of lawsuits caused the village to pare down the geographic area within only two weeks.

Valerie Dehner, Rolling Meadows community development director, said Wednesday that since retail business has moved to regional malls, areas like downtown Rolling Meadows need a mix of retail and services as well as nearby residents to support them.

"That's what our marketing study is going to address," she said. "We have to make an environment in which businesses will flourish, not have continuous empty store fronts."