Glenview to annex Allstate campus under agreement with Prospect Heights
Glenview and Prospect Heights announced Friday that the municipalities are working together to allow Glenview to annex the Allstate campus property.
The municipalities agreed on amendments to the 1997 Milwaukee-Sanders Corridor Agreement, clearing the way for the annexation, according to the announcement.
Under the agreement, Glenview will pay Prospect Heights 18% of the property and sales taxes collected each year on the development. Glenview will make two other payments to Prospect Heights before redevelopment begins.
Records show Allstate's 2020 property tax bill was nearly $670,000. Projections for the other two payments were undisclosed.
"We're pleased to have come to an agreement on this quickly and in the best interest of both communities," Glenview Village President Mike Jenny said in a statement. "Keeping the entire development in one municipality will help ensure an efficient review and proper oversight of the land."
The bulk of the campus, 202 acres, is the main Allstate site at 3075 Sanders Road, from Willow Road south to the residences around Concord Lane in unincorporated Cook County near Northbrook.
West of Sanders Road are 30 acres that include Allstate Insurance West, which is in Prospect Heights.
Reflecting employees' preference to continue working remotely, Allstate Corp. announced on Nov. 29, 2021, it was selling 232 acres of the Allstate campus to Dermody Properties for $232 million. At the time, Dermody Properties President Douglas A. Kiersey Jr., a Chicago resident, placed the timing of the closing as "probably the second half of 2022."
Glenview and Prospect Height agreed to allow Allstate and Dermody to file an annexation petition with Glenview for the entire campus, the statement said.
Dermody, a privately held real estate investment management company headquartered in Reno, Nevada, but with a Midwest office in Rosemont, specializes in domestic logistics real estate.
Kiersey described a preliminary plan of 11 buildings -- traditionally known as a warehouse or distribution center -- occupying a total of 3.2 million square feet. Kiersey said once construction began it could take two to four years to complete.
He said it could serve about a million people within a 10-mile radius.
Glenview and Prospect Heights entered the 1997 Milwaukee-Sanders Corridor Agreement to ensure sound planning along those thoroughfares. The agreement helps clarify development standards and procedures.
In April, the Daily Herald reported the Village of Glenview claimed Prospect Heights stated its intention to annex the campus. Prospect Heights officials did not comment at the time. Glenview officials claimed that would violate the 1997 agreement.
"The two communities have been engaged in productive, collaborative discussions for several weeks about how best to update and uphold the spirit of the long-standing corridor agreement. The outcome of those discussions was this agreement," Glenview Community Engagement Manager David Just said.
"Good government is about working together to do what's best for residents, business owners and stakeholders," Prospect Heights acting Mayor Matt Dolick said in Friday's statement jointly issued by the Village of Glenview and the City of Prospect Heights.
"Both communities have a great deal to gain from this agreement, and we look forward to working with the village (of Glenview) and the property owners as the development moves forward."
For its June 13 city council meeting, City Administrator Joe Wade said Prospect Heights has tentatively scheduled discussion on an ordinance disconnecting the property from the city as well as an intergovernmental revenue-sharing agreement.
The Glenview village board will review and potentially approve the amendments to the intergovernmental agreement and corridor agreement with Prospect Heights on June 21. The next day the Glenview New Development Commission will review the site plan and rezoning. A future board meeting would review the annexation agreement, Just said.
Once constructed the redevelopment is expected to generate more than $12 million in new revenues over the next 10 years.