Brakes put on Libertyville office uses

Interest came quickly after a partially completed food store was cleared from a spot on Milwaukee Avenue in Libertyville. But a medical office building wasn't what village leaders have in mind.

So as a pre-emptive strike, the village has imposed a 6-month moratorium on new office uses on the first floor of buildings in commercial areas along Milwaukee Avenue.

Because sales tax is used to fund day-to-day operations, communities fear further erosion of that source and don't want offices to fill vacancies that had been retail outlets.

"All towns are facing the same thing. What we don't want is to see all of our retail, because of the downturn in the economy, going to office," Libertyville Mayor Terry Weppler said.

State figures show the village's share of sales tax revenue dropped about 12 percent, from about $6.3 million in 2008 to about $5.5 million in 2009.

In January, Vernon Hills approved a similar ban for commercial areas along Route 60 and Milwaukee Avenue, though village leaders a few weeks later tightened the boundaries to exclude some commercial areas.

One major concern in Vernon Hills was a proposal for a medical office building in a former Circuit City store. Despite the building being vacant for more than a year, Vernon Hills trustees refused to exempt it from the moratorium.

In Libertyville, a developer recently made an informal presentation for a multistory office building to include some retail uses at the former Frank's Nursery & Crafts site, 1600 S. Milwaukee Ave., on the village's southern entry.

That had been the intended location of a Fresh Foods grocery store, but the project fizzled and the partially-completed building was demolished last month.

"We just wanted breathing room to see what's best, not just for that property, but all properties," said Weppler, who had the item added to the village board agenda just days before last Tuesday's meeting.

Libertyville's ordinance imposes a moratorium on the issuance of building permits, zoning certificates of occupancy and zoning certificates of compliance. Like Vernon Hills', it allows for new offices to replace ones that have been vacated.

More permanent changes could be coming. The ordinance that enacted the moratorium also directs the plan commission to review the regulations for buildings in the C2, C3 and C4 commercial districts along Milwaukee Avenue.

Similar restrictions already are in place in Libertyville's downtown area, where office spaces are prohibited in the first 35 feet of ground level spaces.

"What we've done is put the moratorium on so the plan commission can address it," Weppler said.