Grayslake OKs infrastructure deal for $818 million project

Grayslake village board members Tuesday night approved the final leg of an agreement for a mammoth $818 million development with office, retail and industrial components planned near Peterson and Alleghany roads.

Skokie-based Alter Group gained the approval on a deal with the village for its Cornerstone project regarding payments for infrastructure that would expedite development. The water and sewer lines, as well as road improvements, also would benefit possible development at an adjoining 1,500-acre site dubbed Central Range.

Projected costs of $60 million would be covered by Alter, said Grayslake Village Manager Mike Ellis. Grayslake's share of the infrastructure cost would come from about $10.4 million in various fees it would not charge Alter for some aspects of the development work.

“The village doesn't have to front any money or do anything,” Ellis said. “All of these utilities get built by (Alter) and fronted by them.”

Ellis said the total infrastructure and other development costs on and off Cornerstone's 641 acres are estimated at $195 million. He said a special-service area a property tax only for parcels in Cornerstone or a business district sales tax could be enacted to raise money for Alter's infrastructure expenses, Ellis said.

Slated for a 12-year construction timetable at an estimated $818 million, Cornerstone is to have industrial, office and research-development facilities blended with retail and residential components. Alter Group officials have said construction on Cornerstone won't begin for at least two years, depending on economic factors.

Cornerstone would have 801 homes, with 356 of them considered “attached single-family.” The houses would be within the borders of Mundelein High School District 120 and Fremont Elementary District 79.

Grayslake village board members once again voiced their excitement about the plans at Tuesday's meeting.

“I look forward to moving some dirt,” Trustee Bruce Bassett said.

Estimates show Fremont would receive nearly $27 million in surplus tax revenue over the 12-year construction period, with about $21 million going to Mundelein High. Grayslake High School District 127 would collect about $7 million.

Cornerstone is projected to create 9,800 jobs, according to Lake County Partners, an economic development group.