Non-retail moratorium extended by 90 days

A ban on offices and other non-retail uses filling vacant spaces in Vernon Hills' most concentrated commercial areas will continue for 90 days.

Village trustees on Tuesday decided to extend an ongoing moratorium to protect its sales tax base, as Vernon Hills does not levy a property tax.

"It's real important to us to have the sales tax revenue - we don't tax anyone in town," said Mayor Roger Byrne.

The decision trumped the concerns of some shopping center operators, who said the moratorium was making it more difficult to fill vacancies, especially small spaces.

Any type of restriction is of concern, according to Scott Carr, representing Inland Commercial property management, which operates the Rivertree and Hawthorn Village Commons centers.

"The objective is to drive traffic into the center," he told trustees Tuesday during a discussion of the issue.

"Vacancy breeds vacancy. There is a place for non-retail users within these centers."

The ban was instituted in January and originally applied to a broader area, which subsequently was condensed. It applies to ground floor spaces in the area surrounding Route 60 and Milwaukee Avenue, although non-retail spots that become vacant can be filled with like uses.

"They still have the ability to do business. They just have to go back into non-sales tax generating space," said John Kalmar, assistant village manager.

The moratorium was imposed after a proposal to convert the former Circuit City store, 551 N. Milwaukee Ave., to a medical office building. Because of a downturn in the economy, village leaders wanted to stop further erosion of sales tax revenue.

Vernon Hills is perennially first or second in that category in Lake County.

An analysis of what users occupy the core commercial area was commissioned and the findings will be used to determine possible alternatives to the moratorium. That report by Rolf C. Campbell & Associates Inc. is available on the village website, vernonhills.org.

Trustee Jim Schultz said he would not oppose a payment in lieu of retail uses, for example. He also suggested that codes could be changed to provide more oversight of what users fill vacant spaces.

Village staff will examine the possibilities in the interim.

"It comes down to a matter of deciding what is the most appropriate course of action," Kalmar said. "We still have to ferret out the details."