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Downtown Development: Village Looks at Starting Over with New Process

Consultant recommends two-step process to find qualified developer for Block A.

 

 

 

Lake Zurich Village board members and staff gathered, Tuesday night, to discuss which direction to take to get downtown development back on track. 

See: Lake Zurich Downtown Development

Consultant Lee Brown of Teska Associates recommended that the village start over with Block A, the village-owned Main Street site across form the Promenade, but this time take a more formal process to attracting qualified developers.

“Our recommendation is that it is time to look at a way of building momentum, building success,” Brown said.

Brown proposed a formal two-step process that begins with an RFQ, request for qualifications. Village staff and consultants would ask developers to provide their credentials and references.

Brown said the previous process, in which developers approached the board with their ideas for a courtesy review, did not allow for even evaluation of the four proposals.

“With these four developers there were no rules, there was nothing other than their wily ability to convince you. There was nothing guaranteeing that they could make a sale,” he said.

In step two, village staff and consultants would sift out the RFQs and choose a limited number of developers, about three, to proceed to a Request for Proposals (RFP). The RFP would ask for the details of developer’s proposals as well as proof of financial ability to undertake the project.

“You hold the assets and you should act like a banker,” Brown told board members.

One concern voiced by trustees is that starting over with a new process will take time, as much as a year.

Trustee Jonathon Sprawka expressed concerns that after another year, the village could be back in the same boat. Trustee Terry Mastandrea said he was concerned that the board failed to meet consensus with the four developers interested in Block A, this past summer, and that could happen again. 

Trustee Rich Sustich suggested that the village also work on finding developers for the other parcels in downtown. Brown said the focus should be on Block A, but village staff could also promote the other areas to developers.

Another source of concern for village board members is the type of development that the market can support.  While village residents seem to want retail on Block A, most developers are interested in apartments or condominiums.

Brown told the board that there is no market for retail currently. He said the development of Block A should be dictated by what is economically feasible in the marketplace.

“Doesn’t that kill the idea of a destination if it’s nothing but apartments,” asked Poynton. 

“You can’t beat the market,” Brown said. He added that the population density doesn’t support retail development for downtown, unless the village was willing to subsidize it. 

Brown told board members that he believes the community would be more interested in seeing progress downtown. 

“They want a rational approach to downtown,” he said.

“I’m prepared to take advantage of your proposal,” Poynton said. “It’s better than doing nothing. We just keep wasting big blocks of time and we’re not getting any place." 

Related Topics: Downtown Redevelopment, Lake Zurich Village Board 2012, and downtown development

JF

7:11 am on Thursday, October 25, 2012

Brown says, "the population density doesn’t support retail development for downtown..." And he's right. Traditional retail like a boutique clothing store, or cell phone store, or whatever won't make it. The cost of rent would be too much to overcome. But a great restaurant or two right at Block A, with at least one right on the water. Wow! That would work. My evidence? Wauconda. W-A-U-C-O-N-D-A. Tired of repeating myself in these posts ... Visit Lindy's Landing. or Slyce. or Bulldogs in Wauconda. I don't have access to their financials. But what I do see are lines out the door at Bulldogs (just go there this Friday or Saturday for dinner and see for yourself). And Lindy's in the summer? There's never enough parking due to the crowds who drive from all over (including L.Z) to dine, drink and enjoy the lake. Wauconda has become a destination spot for many. And it's the restaurants that have led the way. Don't have time to visit? Then read the 7/15/12 Daily Herald article on Wauconda entitled, "Downtown Wauconda's new look a hit" ... http://www.dailyherald.com/article/20120715/business/707159902/

Just apartments? UGH. What a wasted opportunity for 18000 existing Lake Zurich residents.

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Sandra Reid

3:50 pm on Saturday, October 27, 2012

B&L LIquors used to be the hot night spot! And Mr. Gould's Rexall Drug store! Now those were the good old days!!!!! Whatever the board and residents decide, I do hope the Alpine motif is continued! That proposed new hotel had NO character whatsoever! How about a Swiss chalet look hotel?!? Please don't ruin such a pretty little town that so many before you fought so hard to achieve! There is nothing else like it around - THAT should be your draw, and THAT should be what you are dedicated to keeping!!!!!!!!!! Your Alpine Village!!!!!!!!!!!!

Richard Carter

7:52 am on Thursday, October 25, 2012

The board of trustees is a collective joke. Downtown "Destination Lake Zurich" is pathetic. I don't need a consultant to tell me that Lake Zurich needs restaurants and a more vibrant night life.

Now, they want to go back to the drawing board? Ha! Downtown could be amazing with a few restaurants on the lake. If you build something that brings in all the Lake Zurich residents that have disposable income, you can build momentum for every other fairy tale you want.

Developers bring in money because they can make more money. Do the trustees really feel like they are going to act like the bank? What business man would allow that? The trustees have either lived a very sheltered life or they are living in fantasy land.

We need to find some people that really know what they are doing and execute a plan. No more consultants and in fighting. Get together or be gone.

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Really

8:47 am on Thursday, October 25, 2012

Brown has no idea what he is talking about... If the population density doesn’t support retail then where is the data to prove it? In the meantime while the village continues to prove their inability to execute, why not clean up our current downtown which looks like complete crap. We're living in an area surrounded by towns that have become desirable to live, walkable downtowns, small shops, restaurants, etc. and instead of following suit we rely on the charm of the town to drive people to live here. Real smart guys/girls real smart....

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Lead Follow or Get Out of the Way

8:57 am on Thursday, October 25, 2012

What ^ she (or he) said. Mr. Brown you could not be more wrong. Who do you think will rent said apartments? Is there some great waiting list for apartments in LZ? All the displaced divorcee's are already over at the Landings. What we want is a place to go and socialize, which we currently do...but in W-A-U-C-O-N-D-A, because there is no where fun or unique to go in Lake Zurich.

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Kathy

9:25 am on Thursday, October 25, 2012

Can't agree more! Where is the evidence for the demand for rentals??? The restaurants could be a real draw.

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JF

9:50 am on Thursday, October 25, 2012

I get Brown's point about retail if he's talking small "boutique" shops. I've owned a retail spot In LZ. Add up rent, staff, phones, security, advertising, insurance, etc... it's quite a large hurdle each month given the demographics in LZ alone.
But restaurants. Ahhh, those are different. The good ones draw people from all over and thus expand the demographic beyond LZ to be viable.

For example, I've been to Cary several times this past year to go to The Tracks (burger and a beer) and Galati's (italian). But I don't go there for their boutique shops. I couldn't even tell you what they have.

And I've been to Wauconda as noted above many, many times. Strickly for the restaurants. I know there's a coffee place there but I don't drive all the way there for coffee. I go there for the lively restaurants and direct-on-the-lake views in the case of Lindy's. And I've been to Palatine (Durty Nellies, Gianni's) and Barrington (McGonigals and Wool Street). But again, I don't drive to either of those communities for boutique shopping. I couldn't tell you what's there. And of course there's Deer Park and Kildeer (California Pizza Kitchen, Gianni's, Biaggi's, etc.). Other than the Apple store I'm really there to dine.

So it's restaurants that make a town a destination in my book. And holy smokes ... add lake views into the mix and you've really got something! Has Brown taken into consideration the ability of a great lake-side restaurant to draw people and $$ from outside LZ?

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ginny wagner

10:26 am on Thursday, October 25, 2012

I was recently at the new restaurant area in Vernon Hills at the corner of Old 22 and Milwaukee. What a great area...they have the Bar-b-que restaurant, a deli/yogurt place, a hamburger place and a bar that sells different types of beers. Food can be ordered in from the other restaurants from the bar. There were huge crowds there on a Saturday...loads of family groups. That type of area would be wonderful in block A.

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ginny wagner

10:27 am on Thursday, October 25, 2012

Oh, and there are apartments around the outskirts of the restaurant area. Kind of like a mini Glen (in Glenview).

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Say it isn't so

12:41 pm on Thursday, October 25, 2012

Be like a Bank???? I dont know where to start!

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Read It

3:35 pm on Thursday, October 25, 2012

I hope the village takes the time to read peoples posts on this site. Every article ends up being filled with people challenging their decision making process. I probably don't know as much as I should about the village board members so shame on me, but from the outside looking in it appears as though the real issue is the people who make it up. It really comes down to who gets stuff done and in this instance that is clearly not the case.

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Paul

3:24 pm on Thursday, October 25, 2012

I hope "The Market" is listening... It sounds very clear what Lake Zurich wants!
Lake Zurich, come to these meetings! Get involved!
I was at the meeting on Tuesday night to show the Board and Committee that the Lake Zurich downtown development is a priority. I got the sense that the Board has a strong understanding of what the residents want. Sprawka, Mastandrea, and Poynton, all stood up for the residence stating that we want to see restaurants and retail. “Block A is the best view of the lake,” we all want to be able to share the best view of the lake!
Let's help them make it happen!

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Jodie

3:25 pm on Thursday, October 25, 2012

I just noticed that Baccus Nibbles moved to the old Bagel Place. That would have been a great restaurant for the downtown area. Again the downtown looses out. Why is this project taking so long? Start over? Sorry but thiese group of leaders need to step down and let someone with a clear vision take the reins already.

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Paul

3:35 pm on Thursday, October 25, 2012

My thoughts exactly! I can't think of a more beautiful place to dine then in a strip mall next to Dominks.

JF

6:06 pm on Thursday, October 25, 2012

Right on Paul. It's not complicated. Start with Block A. Demand a restaurant space in the first floor. And sure, condos or apartments above are fine if that makes financial sense. But a restaurant on the lake. And outdoor patio restaurant seating on the lake. And even a bit of sand and water access a' la Lindy's in Wauconda. Again, on the lake to draw people from Palatine, Barrington, Kildeer, Long Grove, etc. They don't have a lake and I'm sure would love to dine on a lake!

If a developer proposes anything without the restaurant ... show him or her the exit door.

And note by "restaurant" I don't mean Denny's, or Applebee's, or some other uninspired chain. A local place like Baccus Nibbles, or D&J, or heck even Tacos el Norte. Sheesh! Imagine a margarita and mexican food on the lake in the summer. WOW!

Here's my wife's brilliant rule-of-thumb. If a restaurant has pictures of food on the menu keep on driving. That means Denny's, Friday's, Applebee's, etc., or any other similar uninspired chain that kills a good rack or ribs or serves dry chicken breast 500 different ways.

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Say it isn't so

8:16 pm on Thursday, October 25, 2012

if you are wondering why this is no interest ...... LZ has a terrible reputation with developers. WHy do you think on the less desirable developers are chasing the downtown gig? Building department lacks education, inspectors are contractors that failed in their own business. Look what this village attracts! Savers, GoodWill, Cash for Gold- Baccus Nibbles came to LZ because the rent is HALF of the market price, the state paid them for there property AND relocation expenses. LA Fitness generates no sales tax and the building was a steal! The Board doesnt get it..........

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John B

9:55 pm on Thursday, October 25, 2012

Could it possibly be that some important people live on the lake and don't want their view obstructed? Hmm?

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Lake Zurich Resident

5:10 pm on Friday, October 26, 2012

Our previous developer, Greg Smith, had $300M in private investor money and was speaking with major restauranteurs and retailers - he was literally chased off because he wasn't their guy.
The Board is better than half controlled by The Lake Property Owner's Association of Lake Zurich. Look it up. They do not want more people enjoying the lake or downtown. The have already taken a run at closing one of the beaches to decrease access by us grubby landowners. They sure don't want any restaurants or additional residences near the precious water.
There are 5 slots coming up for re-election - we all need to wake up and get our people in, or stop complaining when these myopic lake purists screw the other 17,000 of us over.

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Say it isn't so

9:55 pm on Friday, October 26, 2012

We really need some young people to get more involved and run for the five slots- Wauconda has passed up LZ ...... whats next...... Ford Heights?

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Deborah Barry

10:59 pm on Monday, October 29, 2012

Issue #1 Officials and staff have NO expertise in development. Friends and relations yes, expertise no. Issue #2 Teska consults to every village in the area. How many city planners have been graduated in the last 10 years?

Look at what works--The Glen, downtown Libertyville, Randhurst Village--then talk to those developers.

Mixed use, walkable, unique sense of place, owner/operator shops and eateries with a kicked up nightlife to attract visitors.

It takes a village, not village officials, to make this work. There are rarely more than a dozen residents at LZ meetings. Show up, and speak out.

Deborah Barry, candidate, Lake Cty Board, D19--this includes Lake Zurich, and I have special experience making private and public sector work together on destination marketing.

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