CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
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Receive the staff report for the Heinen Business District located at 1256 through 1290 East Chicago Avenue (Item 1 of 3)
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DEPARTMENT: Transportation, Engineering and Development
SUBMITTED BY: William J Novack, Director/City Engineer
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Heinen initiated the purchase of the Butera Market building, located at 1256 through 1290 East Chicago Avenue earlier this year. Heinen plans to enter the Chicagoland market and build a grocery store at this location. During the due diligence period, Heinen 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. Even though the frequency of stormwater ponding in the parking lot is not often, this condition did not appeal to Heinen.
A solution is to raise the parking lot and provide the stormwater storage beneath the it in buried vaults or chambers. This is a very expensive, multi-million-dollar solution. Due to the blighted condition of the site, and the additional cost to address the stormwater issue, Heinen 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 tax to allow the site to be redeveloped.
In accordance with State Statutes the following was completed to establish this business district:
1. On August 16, 2022 the City Council adopted Resolution 22-115 expressing the City's intent to consider the designation of a business district at this site
2. On September 20, 2022 the City Council passed Ordinance 22-115 scheduling a public hearing for October 4, 2022
3. On September 21, 2022 the first public notice for the public hearing was published in the Chicago Tribune
4. On Septe...
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