07/06/2015C.O.W – July 6, 2015
COMMITTEE OF THE WHOLE – Minutes of Meeting
July 6, 2015
The Village Board met as a Committee of the Whole in the Council Chambers of the Village
Hall at 6:30 p.m. on Monday, July 6, 2015. In attendance were:
Village Board Staff
Harriet Rosenthal, Mayor Kent Street, Village Manager
Alan Farkas, Trustee Andrew Lichterman, Asst. to the Village Manager
Thomas Jester, Trustee Jeff Ryckaert, Principal Planner
Dan Shapiro Eric Burk, Finance Director
William Seiden, Trustee David Fitzgerald, Management Analyst
Barbara Struthers, Trustee Barbara Little, Director of Public Works and Engineering
John Sliozis, Police Chief
Petitioners Present
Dave Hene, Sr. Real Estate Manager, Jewel
Michelle Panovich, Mid America
Richard Skrodzki, Attorney representing Jewel-Osco
Peter Theodore, Architect
Public Comment
None on non-agenda items
Deerbrook Jewel-Osco Redevelopment Proposal
Mr. Skrodzki thanked the Board and staff for this opportunity and introduced the petitioner’s
team. Mr. Hene noted the store is not meeting the needs of the community. Jewel wants to put
the best product forward and replace the current 46,000 sq. ft. store and construct a new 62,000
sq. ft. store. Jewel would like to continue to operate a store during construction and believes this
offers the best opportunity for them to be successful. Additionally, there is $1.3 million in
extraordinary costs to sequence construction of a new store to maintain operations.
Mr. Theodore noted the goal is to create a store that is functional and allows customers to shop
the old store and new store without feeling the impact of construction. To do this, Jewel
proposes to build the store around the (old) operating store. Mr. Theodore showed the Board the
proposed staging and store rendering. He stated this is a viable solution that has been successful
in other locations. He noted that the new building would have a contemporary design and would
have high-quality materials, timeless architecture and feature architectural designs that would
improve the look of Deerbrook. He stated the new site plan would create space for two additional
retail outlot buildings to the north, maintain the current parking count and improve traffic flow.
Trustee Seiden inquired whether the new store would be bigger than the Highland Park Jewel-
Osco. Mr. Theodore stated the new store would be about 20,000 square feet larger than the
existing store but slightly smaller than the Highland Park location. Mr. Street noted it would also
include a new pharmacy drive-thru.
C.O.W – July 6, 2015
Trustee Jester inquired about the shipping/receiving area. Mr. Theodore noted that the
consolidation of the receiving area should be an enhancement and he will review the parking
situation to determine if parking spaces will be lost. Trustee Struthers noted that the parking area
to the north is heavily used.
Trustee Jester inquired about the anticipated types of tenants for the new outlot buildings. Ms.
Panovich noted small-space outlots are in high demand and ownership currently has two tenants
in a bidding war for the former Chase Bank space. Mr. Street noted that as part of this deal, the
outlots are required to be retail uses.
Trustee Jester also inquired about the traffic study with Deerpark Plaza. Ms. Panovich noted that
the traffic study took this project into account. Mr. Street noted that the traffic study will be
considered by the Plan Commission during the land use review.
Trustee Struthers noted that the Jewel-Osco employees are great and commended the company
for hiring people with disabilities. She hopes the current employees are kept on during the
project.
Trustee Farkas inquired about the timeline. Mr. Hene noted Jewel anticipates 12 weeks to
complete their documents, one month for permitting, and another 30 weeks for construction of
three-quarters of the store. The store will soft-open at that point with a connection to the old
store. Jewel will then finish construction of the remaining quadrant in 12 weeks. Following that,
the remainder of the pharmacy will be completed. In summary, a soft opening is anticipated at 44
weeks and grand opening is anticipated for 63 weeks. Mr. Street noted the proposed agreement
stipulates a construction start within 12 months of completion of the land use approval.
Mr. Street summarized economic terms outlined in the proposed agreement and noted that a true-
up of actual extraordinary expenses will be provided to the Village. Payment will start after the
first month following the store operating in its full capacity. He noted that under the agreement,
Jewel-Osco would receive 75 percent of the incremental sales tax and home rule sales tax
revenue from annual retail sales above a base level of $17.5 million for up to 20 years or until the
net present value of $1.2 million is reached.
Mayor Rosenthal noted that Deerbrook is participating as well by investing approximately $6
million directly to Jewel and the Village is just looking to assist with the actual dollars spent to
keep the store operating during construction with a cap of $1.2 million at net present value. Ms.
Panovich noted Deerbrook is also paying for the demolition and site work, which brings their
total investment to over $7 million.
Trustee Farkas inquired if the agreement would still be in effect if Jewel or its parent company
were to be sold. Mr. Hene noted that the agreement would still be in place if the parent company
were to be sold, but not if this location were sold.
C.O.W – July 6, 2015
Mr. Street noted Jewel will have a 10-year lease with 3 - 5 year extensions. Also, this lease
permits for a wholesale club to operate in the mall. Trustee Seiden requested that the non-
propriety lease terms be shared with the Village.
Mr. Street noted this is a key window of opportunity. Mayor Rosenthal noted that she, Mr.
Street, and Trustee Nadler strongly recommend that the Board endorse the proposal and then
consider a formal economic incentive agreement at the next Village Board meeting. This
agreement will be contingent upon Jewel successfully completing the land use approval process.
Mayor Rosenthal thanked Jewel for their presentation.
Trustee Farkas made a motion to adjourn. Trustee Struthers seconded the motion.
The meeting adjourned at 7:10 p.m.
Respectfully submitted,
David Fitzgerald,
Management Analyst