Economic development deserves funding, ideas for the entire village

When the Village Board votes tonight on the 2016 budget, it will approve $100,000 to study economic development along the Lake-Cook Road and Prairie View corridors.

                It’s important to note that these are corridors.  Plural.  More than one.  The expenditure is part of the proposed 2016 budget (2016 Budget) which was discussed at length at the Board’s Nov. 16 meeting, and calls for the study to be completed by Dec. 31, 2016.

                The study represents a concerted effort by the village to address comprehensive economic development, not just one spot in the village.  The Lake-Cook corridor runs from Arlington Heights Road to Milwaukee Avenue.  No single area has been singled out, nor has a developer or proposal been identified.

                The Prairie View corridor is the vicinity of the Prairie View METRA station and does not call for additional annexation of residential areas that may be in unincorporated Vernon Twp.

                Pundits are likely to do one of several things.  The first may be to chide the village for not being transparent.  The budget has been available on the village’s web site (as noted by the link above).  The village also hosted an Economic Development Open House from 5 to 7 last Wednesday.

                Despite its rather unusual timing, village staff, led by Community Development Director Chris Stilling did more than just a “nice job” presenting the village’s progress and plans for economic development.

                But how many of the 30 or so residents who attended did more than listen. How many heard?

                Economic development entails more than attracting retail businesses.  An estimated 20,000 people work in Buffalo Grove each day. They range from attorneys to the ever-popular sushi chefs, warehouse workers, health care workers and educators among others who call Buffalo Grove their professional home.  Stilling estimates that 90 percent of those who work in Buffalo Grove, live elsewhere.  While this represents a potential market segment, appealing to the workforce in Buffalo Grove is not the only target.  In fact, it would be interesting to see how Buffalo Grove’s numbers compare to other communities.

                Addressing the Buffalo Grove-based workforce is one aspect of the Economic Development plan that will be presented to, and hopefully discussed, by the Village Board at its Dec. 21 meeting.  The plan is available at Economic Development Plan.

                The fact that the plan is so readily available would, you would think and hope, alleviate accusations of lack of transparency and, you would hope, foster discussions directly to economic development. 

                Have more METRA trains, and the Weiland Road extension are not part of the Economic Development plan. Of course, two words that emerge with any discussion about economic development are Town Center.

                While the center is in a prime location, the village does not own it.

                The village cannot redesign it.

                The village cannot fill the vacancies.

                The village can, however, work with management of, not only Town Center, but other retail and commercial developments in attracting prospective businesses to the village, but the village is not a landlord.  Period.

                The Economic Development plan identifies, Stilling says, sites to be considered for potential development.  Village Planner Nicole Woods also noted that there are a variety of tools available in the plan, such as Tax Increment Financing.  However, it was made quite clear that no TIF districts have been identified or approved.

                While last week’s turnout was admirable, especially given the early time, most of those attending seem to be content on rhetoric that has been previously heard around the village – as in the last election.

                Beverly Sussman and Dave Weidenfeld were elected via the “Save Buffalo Grove Now” effort on the premise that the village needs to maintain green space, an effort fueled by the proposed effort to develop much of the Buffalo Grove Golf Course by CRM properties. That proposal is gone.  The need for economic development is not.

                Stilling and the rest of the village staff have been working doggedly to get things moving, which appears to be the case.

                However, if you gauge the movement by what activities at public meetings, you may wonder.  Last week’s meeting, while seemingly well attended, included many of the same folks who have voice the same arguments before.  Many of the attendees are longtime village residents who are resistant to change.  A prevailing attitude seems to be that Buffalo Grove is a bedroom community and that’s what it should remain.

                Both Weidenfeld and Sussman attended the meeting and neither contributed to the discussion.  Let’s cut Weidenfeld some slack because he’s still the new kid on the block.  Sort of.

                Sussman, however, touted the need for business development, an economic development website etc.  As a former small business owner, and now Village President, you’d think she would be at the forefront of the movement.

                Apparently not.  Sussman sat toward the back of the meeting last Wednesday and did not say a word on behalf of staff efforts, or her vision for economic and community development.

                And while the dialogue between residents and staff was good, much of what was presented were ideas flowing from the same recipes for leftovers.

                The Village Manager’s office staff, from Village Manager Dane Bragg on down appears to have things in focus.  Perfect?  Nothing is perfect.

                The constant allegations that the village does nothing, and repetitive whining that the village can’t change, has run its course.  The $100,000 earmarked for studying economic development corridors is money well spent.

                Even if it means changes in the village, like development of a downtown.

                Oh wait, I’m sorry.  At least week’s meeting the term “downtown” was replaced with the phrase “focal point.”

                Why?  My guess is to keep Buffalo Grove the same and not rattle the Geritol bottles of those resistant to change.

                Petula Clark would be devastated.

                Just imagine what it would be like if the NFL adopted a similar ideology.

                No longer would Joe Montana, Bart Starr, Tom Brady, John Elway, Brett Favre, Roger Staubach be known as Super Bowl quarterbacks, but as “Focal Points”.

                Call them what you want – the results were the same.

                Not because of what they were called, but because of a game plan.

                The village is moving in that direction.  Staff is working on a game plan that addresses the game as it is played now.

                It’s time to look at next week’s game and not last year’s loss. 

The need for retail development didn't just happen...

The recent discussions about economic development in the village have, to say the least, been enlightening.

                They could serve as transitions from the now vaporized “downtown proposal” to the upcoming village election.

                But they shouldn’t.

                While it’s likely some candidates may focus on the proposal-formerly-known-as-downtown, which would have ruined the golf course and kept the village from getting the PGA tour, the reality is that it is no longer the issue.

                Good-bye, farewell, Auf Wiedersehen, good bye, hasta la vista baby.

                That’s why presentations by Chris Stilling, the recent acquisition to the village manager’s office have been, in many ways, a breath of fresh air.

                One of Stilling’s main functions, if not the main, has been to give Buffalo Grove’s seemingly sagging retail environment a boost.

                And he hasn’t mentioned ‘golf course’ once.

                More than a few weeks ago, I began a series of blogs addressing economic development in the village.  I posed four questions to the village fathers and mother. The first question addressed the developer formerly-known-as-Malk because he was trendy at the time.

                Now however, he’s old news.  As they might say at the bike shop -- Gone with Schwinn.

                So what now?

                The result of Malk taking his plan off the course should not have an impact on future development efforts in the village.

                “It may cause owners/developers to re-evaluate their assets in BG and push forward any of their rehabilitation and/or expansion plans to accommodate the realized needs or desires of Buffalo Grove residents,” Trustee Steve Trilling told me in an email response.  Trilling’s point makes sense, because it appeared, at least in its preliminary and even secondary renderings, that the “instant downtown” had not done that.

                The focus of bringing the mountain to town may lie in re-evaluating and redeveloping existing areas, best known as corridors.  The village’s targets are likely to be the existing Dundee corridor and development of the Milwaukee corridor, especially at Deerfield Parkway and Milwaukee Avenue.

                Whatever does happen, however, developers with ideas may find themselves under scrutiny.

                Trustee Beverly Sussman said she thinks Malk’s picking up and going home “should not have a tremendous impact on other plans for economic development.”  She noted that there are “many corridors to work on for economic development”. 

                Sussman noted too that “somehow, somewhere, something has to be done with the Town Center. I know we don't own it, but something has to be done to that eyesore.”  The keywords are “we don’t own it.”  So what can be done with the retail albatross?  When you consider that its most successful tenants Binny’s, Burger King, Boston Market and Brunswick’s it may make sense to have more tenants that begin with the letter B.

                People call attention to Town Center because it stands out like a sore thumb. But, as Sussman notes, the village does not own it and unless there’s a magical power of eminent domain that would let the village do something with Town Center, any discussion about the village involvement with it is basically a moot point.

                While some folks seem to have put all the development eggs in the CRM proposal, Trustee Jeff Berman points out that “The need for economic development did not begin and does not end with the demise of the CRM downtown proposal. The village definitely needs to continue to work to diversify and improve its revenue profile. A key component is economic development. On that point, there is neither doubt nor real controversy.”

                This, from my standpoint, is why Stilling’s presentations have been a jolt of lightening in the discussion of economic development.

                Economic development is something that falls into the village regular mode of operation.  Waiting for elections where it becomes “an issue” is not in the best interest of the village or is residents who may be led to believe that the results of an election will result in an instant panacea for economic development.

                It’s more involved than just building a retail outlet.  It takes more than a “Field of Dreams” mentality – just because you build it does not mean they will come.

                In fact, notes Village Manager Dane Bragg, redevelopment can be more complicated than starting a project from scratch.  The reason, he says, is that there are existing traffic patterns and infrastructure constrains that come into play.

                During a recent committee of the whole meeting (also known as a workshop meeting), Board members were told that a key to economic development, or in Buffalo Grove’s case, redevelopment, is looking at available square footage, not numbers of vacancies.

                The key here is the flexibility.  Bragg notes, for example that 300,000 square feet of retail space can be split into “more productive space” for a retailer.  The village’s vacancy rate is approximately in the neighborhood of 15 percent.  For comparison sake, Chicago’s is 8.2 percent.  Statistics, however, can be squirrely things.  Fueling Buffalo Grove’s rate is the 63,000 square foot edifice at Lake-Cook and Arlington Heights roads that used to be known as Dominick’s.  Take that out of the equation and the village’s vacancy rate drops to around 10 percent, which may still seem high, but it’s important to factor in the vacant car showrooms along Dundee Road.

                There’s no quick solution.  Economic development – and redevelopment – is a pain-staking strategic process.  It can be costly too if economic incentives come into place, and with cuts to municipalities being eyeballed by the Rauner administration, it’s possible that incentives will be harder to offer prospective retailers.

                “We always take a careful look at public financing,” Village President Jeff Braiman says.  “We have always been conservative which is one reason we have a AAA bond rating.”

                This enhances the challenge for attracting retail development.

                Whatever approach the village takes, it needs to be forward thinking.   Chuck Malk and his instant downtown are gone.  Nothing is planned for the golf course.

                The key is to look out the windshield and not the rear-view mirror.

With the CRM plan gone, tomorrow is another day...

Imagine if Margaret Mitchell, author of “Gone With the Wind,” was a member of the Buffalo Grove Village Board.  After 2½ years of debate and discussions, many of which were contentious, regarding the now vanished “downtown project”, old Meg might have just rolled her eyes and uttered, “well, tomorrow is another day.”

                And she would be right.

                The instant downtown, proposed by Deerfield-based CRM Properties, is now a  memory. And while the acrimonious debate is seemingly lingering over concerns about the process and the fate of the Buffalo Grove Golf Course, the fact remains that the plan is gone and the village needs to face another day.

                The last several months have been a whirlwind of activity surrounding the CRM project and the end, much like Jay Cutler’s role as the Bears’ starting quarterback, came suddenly, with an unclear future lying ahead. 

                The village, however, is taking steps to enhance, develop and redevelop its retail business climate.  It’s going to be an arduous task for the village staff and the fathers and mother that make up the Village Board.

                There are a lot of questions.  In regard to the CRM project, I had hoped to get some answers from CRM President Chuck Malik, but scheduling conflicts and then a trip out of town led to his suggestion that I “check with (Village Manager) Dane Bragg for details.”  And before you know it, the petition was withdrawn.  Questions, however, remain.

                Up until a couple of weeks ago, questions centered on what Malk was going to do with his mega plan for a “downtown Buffalo Grove”.  His decision to withdraw his petition surprised residents, village staff and officials for a variety of reasons.

                For the cynical residents, it was a surprise because they assumed the project was a done deal.  For others, it was a surprise because there were so many unanswered questions that it was not clear which direction the plan was going.

                What may have been at the root of the withdrawal was that fact that Malk was eyeing in excess of $100 million from the village, a figure that was not met with open arms.

                “I was more surprised by Malk’s recent financial pro forma that was presented to the Board,” Village Board member Steve Trilling told me in an email response. “It was inconsistent with an earlier representation as to the amount of public funding, if any, that might be necessary.”

                The quick kill to the project may have been Malk’s request for financial support from the village.

                Board member Lester Ottenheimer said what surprised him was the change in financing because in what he called “preliminary discussions”, the village was led to believe that “financing would be different.”  Ottenheimer added that Malk’s decision could have been “because he couldn’t get what he wanted in financing elsewhere.”

Ottenheimer noted that the proposed cost to the village “were so high up it was out of control; He wanted us to finance $100 million. We can’t tie up the village with that kind of debt”.

                Was Trustee Jeff Berman surprised by the decision? “No, not in light of the financial figures CRM recently provided to the Village,” he told me in an email. He noted that “those figures were developed for the current version of the plan, which was created in response to the engineering study that was completed earlier this fall. Mr. Malk told staff that in order to make the project work from his perspective, he required a firm commitment for public financing for the “gap” shown on his spreadsheet of roughly $102 million.”

Berman noted that “just a few months ago, by contrast, he was still touting the possibility that the project could be completed without any TIF, or one of insignificant size.”  Berman said changes in circumstances the plan and numbers and Malk’s perspective led to Berman changing his own perspective.  “Based on the financial forecasts provided by CRM, it is clear to me that the project is financially infeasible. The nature and amount of TIF debt required to make the project “work” is far beyond any rational contemplation.”

                Board member Andrew Stein said he too was “surprised by the amount requested by Mr. Malk.” Stein noted in an email response that in previous discussions with the Board, Malk indicated that “he would try to structure it so that we would not need a TIF. When he did talk about a commitment from the Village, it was closer to the $20 million range.”

                Stein added that he was not was “not surprised that he (Malk) walked away when we told him that we were not interested in a $100 million contribution from the village.”

                The apparent move by Malk, along with the surprise and ensuing concern by the Board, should bring to light that this was not a “done deal” and that village staff and officials kept an eye open on the long-term impact on village finances.  Still, there were some apparent mixed reactions.

                “I don't know if I was so much surprised as I was disappointed,” Trustee Mike Terson told me in an email. “I was looking forward to going through the entire process and seeing how that evolved, as well as how the community would react as they learned more and more about the project.”

                Terson added that he is “not surprised by his decision because it became clear that the entire Board was not on the same page; and, that is a lot of time and money to invest in a process that you don't feel is likely to garnish the needed support to make happen.”

                Beverly Sussman said in an email that she was surprised by Malk’s decision because it happened “so abruptly”, especially given the fact that Malk “worked on this project for approximately 2-1/2 years and presenting two different concept designs plus his original design”.  Sussman noted that what added to her surprise was that fact that Malk “had a great deal vested in this downtown project.”

She added that he could have “tried to scale down the project or negotiate the amount or at least had some meetings with the Village to see if there was anything possible to work on. It's hard to believe that a developer of this size and magnitude would not have come back to the Village with some new proposal or concept.”

                Hard to believe or not, the proposal for a “downtown Buffalo Grove” is gone and when it comes to retail development or redevelopment in the village, tomorrow is another day.

                And frankly my dear, hopefully there will be developers who actually give a damn.

(This is the first in a series focusing on retail development and redevelopment in Buffalo Grove)

Marshalls' commitment a welcome addition to village's retail community

It’s just one store, but it’s likely a welcome addition to Buffalo Grove’s retail landscape.

A sign announces the pending arrival of Marshalls at Woodland Commons

                Marshalls, a national retailer of, according to its website, “fashionable, brand name family apparel, home fashions and other merchandise,” is planning to open in late Spring or early summer of 2015.

                The 27,100 square foot store, located in Woodland Commons at Buffalo Grove and Half Day roads, is one of the few, if not the only national retailer in the village.  The occupancy was confirmed by the Inland Real Estate Corporation, which manages Woodland Commons.  Calls to Marshalls were not returned.

                The commitment by Marshalls to move to Buffalo Grove is an indication that there is an interest by major retailers in the village.  It does not, however, mean that a major development will be an overwhelming success. 

                Barring any changes in the coming year, Woodland Commons will have a 100 percent occupancy rate, a rarity in large suburban strip centers. Woodland Commons has more than 170,000 square feet of retail space.  Whatever Inland’s strategies are, they seem to be working.  The company manages a number of nearby strip centers including Rivertree Court and Hawthorn Village Commons, both in Vernon Hills and the Red Top Plaza in Libertyville.

                If the arrival Marshalls is an indication of a turn in the retail economy, the village could see some of the vacancies in strip centers, especially those along Dundee Road, become occupancies.

                But don’t, however, sit back and say “it’s about time the village did something” because the village is not a rental agent, nor does it develop business plans for businesses.  The village has offered incentives to developers, as it did to the interested developers of Cambridge Commons at Dundee and Buffalo Grove roads, only to find that 14 Dundee Road LLC had more excuses than actions for making the eyesore a viable retail center.  You’d think incentives totaling $1.1 million would be a kick in the butt for the developer to get things going. There's only so much the village can do.

                The challenge for the village is to find ways, besides offering financial incentives, to attract retailers.

                Again, that’s a challenge.  The village is not a shopping destination and establishing it as one will not happen overnight or by building a new downtown.

                This isn’t Dyersville, Iowa.  It’s going to take more than building it to make them come.

                That’s why the discussion of an Economic Development Commission at the July 28 Committee of the Whole meeting (OK, it’s a workshop meeting) was an encouraging sign.

                In the meantime, Marshalls is a welcome addition.

                But it’s just one store.

This is the first of a series examining economic development in Buffalo Grove.

Retro retail ahead?

It has only been just shy of two weeks since Father Time sauntered out the door and the New Years baby that was 2014 crawled in the door.

               But much to my surprise, the banging on the keyboard and the incessant worrying was in high gear. Perennial candidate and worrier Chicken Little was hard at work.

               However, there was a twist this time.  Little has said repeatedly that he is worried about state number of vacancies in the village’s retail space, and rather than have him keep on clucking and expect the village to fill the spot, I told him to come up with some plans.

               He did.

               “I tell you, these plans can put Buffalo Grove on the map,” he said.  I’m thinking, not again.

               “Yep.  I’ve decided to the village needs a theme to develop a unique retail climate” he said. 

               Dare I ask?  The theme is?

               “Buffalo Grove, where we keep the past alive….”

               I’m lost.

               “So here’s my plan,” Little said, “we find ways to resurrect some of the famous names from days gone by the fill some of the vacancies.”

               Such as?

               “Can you see the former Dominick’s at Lake-Cook and Arlington Heights roads open as a Venture, Turnstyle, Wieboldt’s, Goldblatt’s or E.J. Korvette store?”

               Ah, not really, I said, but what about the rest of the strip center?

               “Easy”, he said.  “How about a Robert Hall, Steinberg-Baum or The Fair.”

               I am thinking a Col. Sanders or Chick-fil-a. 

               “Not funny,” he said.

               I asked C.L. if he had any ideas for the vacant car dealerships along Dundee Road.

               “You bet I do – all with the same theme.”

               I knew I’d regret this.

               “I’m thinking we could have Nickey Chevorlet, home of the backwards K or maybe Z Frank -- or -- better yet – how about Burt Weinman, your TV Ford man? 

               Any other bright ideas, I asked.

               “Well, now that you asked, I have one other idea for the Dominick’s at Lake-Cook and Arlington Heights road just in case my first plan doesn’t work.

               And that is?

               “A center with a Village Hall flair.”

               I asked him how he intended to do that.

               “Well, the old Dominick’s store could be a Gentleman’s Club.”

               With a Village Hall flair?

               “Just in name,” Little said.  “I was thinking about calling it the Dancing Dais, or Executive Session”.

               I asked him if he was serious.

               “Well, sure.  If we want to give it flair for the village’s finances a friend of mine gave me a great idea for a name.”

               And that is?

               “Bare Assets.”

               But what about the rest of the center?

               “Piece of cake,” Little said.  “I’m thinking of a coffee shop with a village twist.”

               Really?

               “Yep, and it would also have a retro theme.”

               How so?

               “Well, I may not have a name, but the barista would be former village manager Bill Brimm.”

               Well at least we know the coffee would be made with good water.  But, I asked how it would be retro.

               ‘The slogan, man, the slogan,” Little said.

               Which is?

               “Fill it to the rim with Brimm.”