Naperville panel to discuss CityGate West plans again Wednesday

A public hearing is scheduled to continue this week on a proposed $200 million art-inspired destination in Naperville, touted by developers as an economic engine that could serve as the city's northwest gateway.

Project leaders intend to address the potential timing and phasing of CityGate West "as best we can" during Wednesday's planning and zoning commission meeting in hopes of advancing development plans to the city council, spokesman James Prescott said.

The information was requested last month by members of the advisory panel, who also expressed concerns over a lack of support from some community stakeholders and a number of zoning variances sought by Inter-Continental Real Estate and Development. Adjustments have since been made to certain aspects of the project, including the residential density, said Prescott, who stressed that "every use as proposed" is consistent with the city's land-use plan.

CityGate West aims to create a "live, work, play" environment at the I-88 and Route 59 interchange, blending entertainment, retail, residential, dining, offices, recreation and hospitality, the development team says. Existing Topgolf and WhirlyBall game centers would be incorporated into the 100-acre campus, as would the shuttered Odyssey Fun World building, which would be repurposed into a music and event venue, according to the proposal.

The concept received preliminary acclaim from some planning and zoning commissioners, including Chairman Bruce Hanson, at their last meeting. But they asked that several "unanswered questions" be addressed before deciding whether to recommend the developer's petition, which includes rezoning the property from industrial to an office, commercial and institutional district.

In addition to providing a phasing plan, Prescott said, CityGate West's top priority was to seek a resolution with Indian Prairie Unit District 204, which has publicly opposed the development.

Though the campus is not age restricted, developers say they expect the apartments to target young professionals and empty nesters, rather than families with school-age children. But despite "multiple attempts" to obtain the district's student generation data and reach an agreement, project leaders "have been met with silence and repeated refusals to work with us," attorney Robert Schillerstrom said in a Dec. 8 letter to commissioners.

School officials have met with CityGate West representatives "on numerous occasions," Jay Strang, the district's chief business official, said Thursday. He pointed to demographic studies completed in 2012 and 2017, saying the district never anticipated additional students stemming from the development area due to its current zoning.

"This was not factored into our student enrollment projections," Strang said. "School capacity issues on the north end of the district are a concern and will necessitate school attendance adjustments."

The Naperville Development Partnership and the Naperville Convention and Visitors Bureau also have expressed opposition to two key components of the project: two hotels with 208 total rooms and two apartment buildings, which had 410 total units in initial plans.

CityGate West is seeking variances from the city's full-service hotel requirements, including square footage, an on-site restaurant and a banquet facility that seats at least 500 people. Those features are satisfied by the combination of uses throughout the campus, Prescott said, adding that "some level of relief" has been granted to other hotels in town.

But Naperville Development Partnership President Christine Jeffries said the city has made great strides over the last several years to increase "demand generators" and deter new limited-service hotels, a category under which she says CityGate West's facilities fall.

"To pull the plug on the definition of a full-service hotel would be devastating," she said. "Because it is so much easier and cheaper to build a limited service hotel, it will be a race to the bottom. Everybody will be driving down their rates."

Jeffries also objected to adding apartments along I-88, a corporate corridor that she says is intended for commercial, business and some entertainment uses.

"We play the long game. When Naperville is at build-out, which isn't that far away, you need a balance between residential and commercial," she said. "We think 400 apartments there is inappropriate. There are plenty of other places residential should go."

The buildings would contain more than just residential units, Prescott said, pointing to a combined 68,000 square feet of retail, restaurant and office space planned for the lower levels.

CityGate West plans also call for several retail and restaurant sites, a medical office building, 19 acres of open space, improved pedestrian connectivity to the campus, and public artwork realized through a partnership with the Naperville Century Walk.

Wednesday's meeting begins at 7 p.m. via Zoom.