CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Pass the ordinance approving the Heinen Business District Redevelopment Agreement between Heinen's, Inc. and the City of Naperville (Item 5 of 5)
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DEPARTMENT: Legal Department
SUBMITTED BY: Michael DiSanto, City Attorney
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In 2022, Heinen's Inc. purchased the Butera Market building, located at 1256 through 1290 East Chicago Avenue. Heinen's is an Ohio-based grocery store that plans to enter the Chicagoland market and build a grocery store at this location. During the due diligence period, Heinen's became aware that the stormwater storage for the site, the adjacent bank, and the park behind the property is provided on the surface of the parking lot. The frequency of stormwater ponding in the parking lot did not appeal to Heinen's.
A solution is to raise the parking lot and provide stormwater storage beneath it in buried vaults or chambers. This is an expensive solution. Due to the blighted condition of the site, and the additional cost to address the stormwater issue, Heinen's sought to establish a business district as allowed by Illinois law. A business district consultant was retained by Heinen and found that the site meets the criteria for a business district and that enough revenue can be recovered by Heinen through the imposition of an additional one half of one percent (0.50%) tax to allow the site to be redeveloped.
DISCUSSION:
The Illinois Business District Redevelopment Act (the "Act") allows a municipality to determine that it is essential to the economic and social welfare of the municipality that business districts be developed, redeveloped, improved, maintained, and revitalized, that jobs and opportunity for employment be created within the municipality, and that, if blighting conditions are present, blighting conditions be eradicated by assuring opportunities for development or redevelopment, encouraging private investment, and attracting sound and sta...
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