Department Staff have been working with Town & Country Shopping Center ownership, Visconsi Companies (Town & Country Chicago Associates, LLC) for over a year regarding potential redevelopment and re-tenanting of the vacant grocer space and redevelopment of a vacant out lot for a fast-casual restaurant. Property owner, Visconsi Companies has requested financial assistance through the use of Tax Increment Financing (TIF) towards landlord physical improvement costs, primarily demolition, roof replacement/renovation, environmental abatement and site work.
During this time of continued retail shrinkage, many retailers are struggling and shopping centers such as Northbrook Court and others are converting vacant retail spaces to non-commercial uses. The vacant 50,000 square foot former Dominick’s grocery space has been vacant for many years. It was shortly reoccupied by Joe Caputo & Sons for less than a year, when they closed in October 2015, and the store front has been vacant for the past five years.
Grocery anchored shopping centers continue to perform better than retail centers with no grocers as they provide daily traffic and are more resilient to economic changes. There are few retail tenants in the current marketplace that would occupy the vacant 50,000 square foot former Dominick’s space. In addition, Town & Country Shopping Center has a 40,000 square foot vacancy at the former Marshall’s location. This represents an opportunity to assist and stabilize Town & Country Shopping Center and generate additional sales taxes.
The following is a summary of the key components of the redevelopment agreement which would provide TIF assistance towards the property ownership’s costs to improve the center with required landlord improvements. Physical improvements are being made to enhance the property and improve it as an asset. No TIF funds are going to the tenant’s themselves. Due to Visconsi’s confidentiality agreement with the tenants their identity and leases remain confidential.
The estimated total cost of the improvement to Town & Country Shopping Center is $14,467,000 of which an estimated $2,409,000 are the developer improvement costs. Developer obligations are to cause the advancement of funds by themselves or others necessary to buildout the grocery store space, including interior demolition, complete roof replacement, exterior façade, environmental abatement, site work and interior buildout. It also requires the developer to commence and complete site improvements for the fast-casual restaurant previously approved by the Village. The developer has also agreed to provide an easement to the Village for future uptown gateway signage.
The Village obligations relative to Tax Increment Financing from TIF V would be a total financial assistance of $1,399,000. TIF V has a fund balance as of December 3, 2020 of $3,150,800. Portions of the TIF assistance would be paid upon completion of demolition and roof replacement for the grocery tenant and site work and foundation completion for the fast-casual restaurant. The final payments would be made after issuance of the Certificate of Occupancy for the two referenced tenants.
RECOMMENDATION
It is recommended that a Resolution Approving the Redevelopment Agreement for Town & Country Shopping Center, be approved.