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HomeMy WebLinkAbout4.1 DOWNTOWN DEVELOPMENT UPDATEMr�GauC �'d'+rt;�iect Item Cover Page Subject DOWNTOWN DEVELOPMENT Meeting June 13, 2023 - COMMITTEE OF THE WHOLE - Fiscal Impact false Dollar Amount Budget Source Category DISCUSSION ITEMS Type Information Item The Village has aggressively pursued the continued redevelopment of its downtown district over the past decade. The Village hired Lakota and Associates to complete the 2013 Downtown Implementation Plan and has been using that document to attract and guide growth in the district. In 2017, the Village established the Prospect and Main Tax Increment Financing District to provide the Village with an economic development tool to accomplish the goals outlined in the plan. To date, these efforts have resulted in nearly $250 million of private investment that has created more than 663 residential units and 32,817 square feet of retail space. In addition, these projects have only generated four students to the local school districts to date, minimizing these developments impact to local school districts. Among the many goals for downtown development, the Village aims to: • Facilitate restaurant, retail, entertainment, and recreation development to create a "destination" for both residents and visitors; • Increase density of residential uses to support new and existing businesses; • Improve occupancy for older and smaller commercial spaces; • Improve traffic flow, pedestrian crossings, and parking to accommodate increased density and more intensive uses; • Support a cohesive built environment to facilitate walkability and active use of space; and • Blend historic and contemporary architecture for a unique atmosphere. 1 Below is a summary of the various projects that are in various stages of development: Park Terrace (15 N. Elmhurst Avenue) The Park Terrace rowhome project was constructed on a vacant one -acre parcel immediately north of the Post Office facility. The 12 rowhome units sold out in less than nine months with an average sale price of over $600,000. Smart Builders invested $6 million to develop this project. 20 West (20 W. Northwest Highway) Nicholas and Associates completed the first luxury apartment development in the Village in over 40 years in the Busse Triangle. This mixed-use project include 73 apartments and 5,000 square feet of new restaurant space. The apartment units leased up in under one year at lease rates far exceeding projections by market analysts ($2.50 per sq. ft. vs. $2 per sq. ft.). The opening of the restaurant space was delayed by the Pandemic but is project to be occupied by an Argentine -themed restaurant named "The Prospect" late this fall. Nicholas invested $25 million in this project. 10 N. Main (10 N. Main Street) The 10 North apartment project replaced the former Central Plaza shopping center at the northwest corner of Main Street and Central Road. 10 North consists of 98 market rate apartments with amenities including a rooftop grill, indoor party room and workout facilities. The project was completed in 2020 and was fully leased within 9 months of opening. The property was sold in late 2022 for over $32 million. Maple Street Lofts (301 S. Maple Street) Construction continues on the second apartment building named "The Dawson" at the Maple Street Lofts mixed-use transit -oriented development. The project consists of 15,000 square feet of retail space, 257 rental units and 56 rowhomes located on a six -acre parcel at the SE corner of Prospect Avenue and Maple Street. The 192 -unit Lofts apartment building is fully leased and all 56 rowhomes have been sold. Construction of the Dawson should be complete by the fall of 2023. The Village is also pleased to announce the 2 Caputo's Fresh Market opened for business in early May bringing a much desired grocery to the downtown. Caputo's also provides fresh to -go food options with an indoor -outdoor seating area. The total construction value of the project is approximately $125 million making it the largest project in the downtown area. Prospect Place (1 W. Prospect Avenue) Construction continues on the Prospect Place development located at the southwest corner of Prospect Avenue and Main Street. The development will include 80 rental units and 10,000 square feet of commercial space. Construction crews have completed the exterior shell of the building and hope to be ready for occupancy by the end of summer. Whiskey Hill Brewing Company and Salerno's Pizzeria will both be opening around Labor Day in the eastern 6,200 sq. ft. of the retail space and the developer is close to signing an office tenant for the remaining space. Whiskey Hill has a fully operational brewery on site making a variety of beers and featuring live music at the facility. Salerno's Pizzeria will be relocating their existing restaurant from Wolf Road and Kensington Road to the downtown district. Noah Construction/T2 Investments is the lead developer for the project and will invest over $30 million to construct the mixed-use building. HQ Residences (112 E Northwest Highway The Village sold the former police/fire headquarters property to the approved development team in early October for $2 million. The developer has completed the demolition of the building and has begun the construction of the new building. The project consists of a six - story, 88 -unit mixed-use building with 3,200 square feet of retail space located at the corner of Maple Street and Northwest Highway. The development team consists of T2 Investments, Harlem Irving Company and Hamilton Partners. Amenities include a pickle ball court, a gym, and several outdoor and indoor recreation areas. The development team is in advanced discussions with an experienced restauranteur from the northern suburbs. Occupancy is anticipated in the 1st quarter of 2024. The total project costs for the HQ Residences is estimated to be $31 million. 127 - 137 West Prospect Avenue Local investors have purchased the former StayFit building at 127 - 137 W. Prospect Ave and are undertaking significant interior and exterior renovations to the property. They will be opening a tequila bar (Lady Dahlia's), a wine bar (Patina Wine Bar) a fitness studio and a salon in the renovated spaces that will continue the resurgence of the Prospect Avenue Corridor. The fitness studio and salon have both opened for business, Lady Dahlia's is currently under construction and is expected to open in late summer and the Patina Wine Bar is expected to open next spring. The total investment in this project will exceed $2 million. The Board will be reviewing a redevelopment agreement with the property owner in the coming weeks to provide TIF assistance with the project utilities and buildout for Lady Dahlia and the Patina Wine Bar. 3 Lions Park Rowhomes (320 S School Street) The applicant, Cornersite LLC, received approval from the Village Board to construct 29 rowhomes at the former National Catholic Society of Foresters property located at 320 South School Street in the downtown in June. The project features market -rate rental rowhomes with two -car garages, rooftop decks, and a pavilion and open space area in the center of the site. The developer has demolished the former office building and the full permit is under review. Construction is scheduled to begin in early 2023 and initial occupancy should begin in the fall. 500 West Central Road The property owner at 500 West Central Road is proposing to convert the office building into residential apartments. The proposal would create 20 market rate apartment units with a mix of one -bedroom and two-bedroom floor plan designs. The proposal would expand the green space on the property, upgrade the existing fagade on all sides, and provide enhanced streetscape along Central Road, which would follow the Village's downtown design guidelines. The Village approved the project in December and the units would likely be available by the end of 2023. Former Busse Flowers Property (100 E. Northwest Highway) Nicholas and Associates has acquired the former Busse Flowers property located at the northwest corner of Emerson Street. and Northwest Highway. They have been approved for the demolition of the structure and expect to begin that work by the end of June. They have yet to submit plans for review for the new building but have indicated that they have a restaurant user in the fold. 111 E. Busse Avenue The redevelopment of the former six -story Chase Bank building located at the southeast corner of Emerson Street and Busse Avenue. has been on hold due to a lawsuit between two private parties relating to the ownership of the property. Staff was informed last week 4 that that suit has been settled and expect to begin discussions with the property owner regarding the redevelopment of this parcel. Mia's Cantina (143 W. Prospect Avenue) The owners of Mia's Cantina recently purchased the building that their restaurant is located in and are planning to expand the restaurant into the adjacent vacant storefront. In addition, they are proposing to convert the second floor office space into five apartments. Work is expected to begin later this summer and be completed by the end of the year. Lions Memorial Park Renovation: The first phase of this renovation is a collaboration with School District 57 and the Mt. Prospect Park District to redevelop the playground and pedestrian paths. Staff is working on an IGA to provide financial assistance in the amount of $250,000 from CDBG and TIF funds. This project will come forward this fall as part of our CDBG approval process. Infrastructure Improvements: Significant investment has occurred since 2017 in our downtown infrastructure, including a new Busse pocket park, streetscape, storm water detention, public parking, pedestrian crossings and improved signalization, sewer and water upgrades and wayfinding signage. Here is a list of improvements to date: • Northwest Highway Watermain Lining • Prospect Avenue Watermain Replacement • Prospect/Maple Watermain Replacement • Evergreen/Wille Watermain Replacement • RR Crossing Watermain Lining • Sewer Lining • LED Retrofits • Wayfinding • Klehm's Island Renovation • Maple Street Parking Deck • Bike Shelters • Bike Repair Stations • Central/Emerson Pedestrian Crossing • Central/Cathy Pedestrian Crossing • Busse/Main Pedestrian Crossing • DT Pedestrian Signal Improvements • Train Station Remodel • Central Road Resurfacing • Northwest Highway Resurfacing • Northwest Highway / MP Road Intersection Improvements • Train Station Platform Extension • Meyn-Busse Park All of the new private and public investment in DTMP have added new value in both equalized assessed values and vibe and character to be enjoyed by residents in Mount 5 Prospect and the region. Alternatives ATTACHMENTS: Metric chart - All projects.pdf DT TIF INFRASTRUCTURE SUMMARY MEMO.pdf All Projects Metric Base Projected Total Development cost - $ 242,000,000 TIF Assistance - $ 14,255,000 New residential units - 663 Population growth - 1,115 Growth in EAV 6,327,804 $ 39,845,100 Sales tax generation 10,000 $ 240,000 Retail and commercial base 20,000 32,817 Number of building permits _ g Projects benefiting impacted local governments _ 6 Retail and commercial vacancy 10,000 - Infrastructure improvements - $ 8,095,000 Metra ridership _ 223 Mount Prospect Public Works Department INTEROFFICE MEMORANDUM TO: VILLAGE MANAGER MICHAEL J. CASSADY FROM: DIRECTOR OF PUBLIC WORKS SEAN P. DORSEY DATE: JUNE 9, 2023 SUBJECT: SUMMARY OF DOWNTOWN TIF INFASTRUCTURE PROJECTS Since creation of the Downtown Tax Increment Financing District (TIF) in 2017, Public Works staff has completed a number of infrastructure improvement projects design to aid redevelopment of the area and satisfy goals outlined in the Village of Mount Prospect Strategic Plan(s) and the Public Works Department Strategic Plan(s). These projects are described in summary below: Water Main Replacement / Rehabilitation Several water main replacement and/or rehabilitation projects were completed in pursuit of improving the reliability and adequacy of potable water in the downtown area. Replacement projects involved replacement of existing pipe with new pipe. Rehabilitation projects involved lining the interior of existing pipes with a cured -in-place felt and resin to create a new pipe within the existing pipe. Rehabilitation techniques were innovatively used in the downtown area where traditional excavation was either prohibitively expensive (Northwest Highway) or practically unfeasible (UPRR crossings). Northwest Highway Lining Project (2018) Project Scope: Maple Street to Fairview Avenue on Northwest Highway. Size of Pipe: 12". Linear Feet of Pipe Rehabbed: 3,700'. Valves replaced: 9. Hydrants replaced: 5. Maple Street, Lincoln Street, School Street and Prospect Avenue Water Main Replacement Project (Maple Street Lofts) (2019) Project Scope: Prospect Avenue from Emerson Street to School Street. School Street from Prospect Avenue to Lincoln Street, Lincoln Street from Emerson Street to School Street and Maple Street from Prospect Avenue to Lincoln Street. Size of Pipe: 10" Linear Feet of Pipe: 3,900'. Valves replaced: 23. Hydrants replaced: 12. 0 Summary of Downtown TIF Infrastructure Projects June 9, 2023 Page 2 of 5 Prospect Ave. and William Street Water main replacement project (2021) Project Scope: South William Street from East Sha Bonee Avenue to Prospect Avenue. Also, Prospect Avenue, from William Street to Edward Street. Size of Main Installed: 8". Linear Feet of Pipe Replaced on Prospect Ave: 833'. Linear feet of pipe replaced on William Street: 722'. Total Valves Replaced: 5. Total Hydrants Replaced: 4. Wille and Evergreen Water Main Replacement Project (Prospect Place) (2021) Project Scope: Evergreen Ave. from Main Street to Wille Street. Also, Wille Street from Evergreen Avenue to Prospect Avenue. Size of Main installed: 8". Linear Feet of Pipe Replaced on Evergreen: 380'. Linear Feet of Pipe Replaced on Wille: 323'. Total Valves Replaced: 4. Total Hydrants Replaced: 2. Railroad Crossing Water Main Replacement Rehabilitation Proiect (2021 Project Scope: Rehabilitation of 4 railroad crossing under the Union Pacific Railroad right-of-way and Northwest Highway right-of-way located at Edward Street, Emerson Street, Central Road and Kenilworth Avenue. Kenilworth main size: 10. Kenilworth Linear Feet Rehabilitated: 182' Central Main Size: 12". Central linear feet rehabilitated: 185' Emerson Main Size: 10". Emerson Linear Fee Rehabilitated: 211' Edward Main Size: 8". Edward Linear Feet Rehabilitated: 170' Sewer Main Rehabilitation Several wastewater collection sewer mains were rehabilitated in the downtown area as well. These projects exclusively utilized the cured -in -place -pipe (CIPP) to renew the service life of sewer mains with minimal excavation. Work was completed at various locations in the area between 2017 and 2023: • 8" diameter sewer main: 188' lined. • 12" diameter sewer main: 4,051' lined. • 15" diameter sewer main: 2,510' lined. • 18" diameter sewer main: 380' lined. • 21" diameter sewer main: 418' lined. • 27" diameter sewer main: 381' lined. • Total: 7,928' of sewer main rehabilitated. 0 Summary of Downtown TIF Infrastructure Projects June 9, 2023 Page 3 of 5 Covered Bike Shelters During the period, the Village constructed 3 covered bike shelters to facilitate non -vehicular transportation objectives and support transit -oriented development. • Constructed in 2017 • 3 shelters, 60 bike spaces. • Funded by Congestion Mitigation / Air Quality and Regional Transportation Authority grants. Bike Repair Stations Permanently installed bike repair station containing a tire pump, wrenches, and various other tools to aid in common bike repairs. • Constructed in 2020. • 1 station in downtown bike shelter. • 1 station in the Kensington Business Center near Maple Park. Central/Emerson Pedestrian Crossing • Construction started fall 2020 and completed spring 2021. • Improved existing pedestrian crossing with pedestrian refuge island, pavement markings, signage including overhead illuminated signs. • Achieved goal of Strategic Plan and Central Road Pedestrian Corridor Study. DT Pedestrian Signal Improvements • Constructed in 2020. • Separated push buttons at each corner of NW Hwy & 83, NW Hwy & Emerson, 83 & Prospect to improve traffic operations. • Achieved goal of 2017 Downtown Transportation Study. IL 83 Resurfacing • Completed by IDOT in 2017. • Resurfacing from Northwest Hwy to Palatine Road. • Included ADA -compliant sidewalk ramps. Central Road Resurfacing • Completed by IDOT in 2018. • Resurfacing from Arlington Heights Road to Rand Road. • Included ADA -compliant sidewalk ramps. Northwest Highway Resurfacing • Completed by IDOT in 2019 & 2020. • Resurfacing from Arlington Heights Road to State Street. • Included ADA -compliant sidewalk ramps. Northwest Highway/ MP Road Intersection Improvements • Completed by IDOT in 2022. i[7 Summary of Downtown TIF Infrastructure Projects June 9, 2023 Page 4 of 5 • Modernized railroad equipment, upgraded traffic signals & streetlights, new bike path & crosswalks, street resurfacing. LED Streetlight Conversion Convert legacy high-pressure sodium and mercury vapor driven luminaires to energy-efficient light - emitting -diode (LED) lamps. All streetlights in the downtown area have been converted (238 lights). Scope of work to date only includes streetlights, pedestrian -level lights have not yet been converted to LED. Maple Parking Deck Construction Construction of a 4 -story parking deck constructed in place of a surface lot. Reutilization of former parking lot space facilitated transit -oriented multi -family residential redevelopment. • Parking Capacity of 262 vehicles. • Features automated vacant space tracking technology. • Open for use in 2021. Train Station Rehabilitation Commuter rail station opened in 1930 and rehabilitated in 2017 utilizing a historical preservation approach. The station is owned by the Union Pacific Railroad and operated by badged Metra employees. The scope of work included brick repair, roof repairs, window and door replacement, foundation repairs, and replacement of trash enclosure. Project was funded by Metra. Wayfinding Signage Uniformly designed signs positioned throughout the downtown area to direct visitors and patrons to points of interest such as public buildings, restaurants, parking, etc. Project completed in 2018. Meyn — Busse Pocket Park Completed as a mixed use, open green space in 2020. The park incorporates open turf space, numerous seating areas, a mix of shade and ornamental trees, and numerous flowering shrubs and perennials. The park also has public charging stations, a gazebo, and lighting throughout the space. The landscape design incorporates four pre-existing large mature trees, seven newly planted shade trees, six ornamental flowering trees, a mix of shrubs and perennials that create a backdrop border to the park. Hardscape features include paver and concrete walks that flow in and out of the park, three different styles of benches including a large seating wall, a large gazebo style shelter, lighted bollards with power outlets and charging ports, as well as four light poles and catenary style rope lighting. Central/Cathy Pedestrian Crossing • Construction scheduled to begin fall 2023 with completion spring 2024. • Crossing to include pedestrian refuge island, pavement markings, RRFBs, overhead illuminated signs. • Goal of Strategic Plan and Central Road Pedestrian Corridor Study. 11 Summary of Downtown TIF Infrastructure Projects June 9, 2023 Page 5 of 5 Train Station Platform Extension Presently the location of the north platform, the primary platform for passenger loading and unloading, requires inbound commuter trains to stop at a point causing train gates to remain closed at IL Route 83. This section of Route 83 has average daily traffic volumes in excess of 20,000 vehicles. In discussions with Union Pacific Railroad and Metra the Village has identified the extension of the north platform as a solution that would allow the train gates at Route 83 to remain open when inbound trains are stopped at the train station. By extending the platform approximately 200 feet to the east would allow inbound trains to clear the intersection while in the station. This would significantly reduce the number of delays during peak traffic periods thus improving vehicular and pedestrian movement. Staff has received a $900,000 Rebuild Illinois grant through Illinois State Representative Mark Walker to design and construct the project. The project is currently pending Union Pacific Railroad approval. Construction possible in 2023 or 2024. Klehm's Island Rehabilitation Updated design to be completed 2023/24. The goal is to update the space aesthetically while incorporating sustainable landscape elements. The end result is a space that reduces turfgrass and incorporates trees, shrubs, native grasses, and perennials. It will also incorporate a paver walk, seat wall, and bench for pedestrians who wish to enjoy the space and plantings. Northwest Highway Corridor Bikeway The Northwest Highway (U.S. Route 14) Corridor Bikeway is a regionally endorsed plan to construct a bike path along the existing roadway corridor that will ultimately connect the City of Chicago to Crystal Lake. A key component of the project is the section of bikeway slated for development within the Mount Prospect corporate limits. The project is currently in conceptual phase. Due to the impracticalities of constructing a dedicated bike path through the existing downtown corridor fronting Northwest Highway, staff envisions an alternative route that will direct bike traffic along Prospect Avenue between Mount Prospect Road and Central Road. This project is a priority project for both the Northwest Municipal Conference and the Chicago Metropolitan Agency for Planning. No date established for final design or construction. Busse/Main Pedestrian Crossing Pedestrian crossing improvements similar in design and concept to the Central and Emerson pedestrian crossing. The improvement will facilitate improved safety for pedestrians and other non - vehicle users to crossing Main Street (IL Route 83) to access restaurants, shops, and residences on the west side of the roadway. The project is currently in design awaiting IDOT approval. A key feature of the improvement will be creation of a pedestrian refuge island and right-in/right-out access for both of the Busse Avenue intersection legs. Anticipated construction in 2024. 12