Skeptics said it couldn't be done — building a power shopping center on a peat bog that had already nearly swallowed one center — but through the diligence of a team of engineers, developers and municipal officials it was accomplished. Landscapers are now putting the finishing touches of the 929, 340 square foot Westview Shopping Center at the northwest corner of Barrington and Irving Park Roads in Hanover Park and Stream- wood, Illinois.

A prime location at one of the busiest intersections in northwest suburban Cook County, Hanover Park officials were anxious to initiate the redevelopment of the site. A potential customer base of more than 70, 000 households as well as substantial sales and property tax revenues were at stake.

A portion of the site had been developed in 1975 with a neighborhood shopping center anchored by a major food store chain. The shopping center thrived until 1979 when the food store chain moved out of state. Finding another anchor tenant proved impossible after inspections revealed the parking lot was slowly sinking into the underlying peat bog. Large depressions in the parking lot and subsidence around the building foundations were the tell tale signs.

Engineering studies confirmed that rehabilitation of the shopping center was not a possibility. The center would have to be demolished and the site redeveloped. Surrounding vacant or underdeveloped parcels had similar soil conditions, thus impeding development of these sites as well. Unfortunately, having been subdivided into small lots in 1962, the property had a myriad of owners, making redevelopment of the entire area by a private developer nearly impossible.

As members of the International Council of Shopping Centers (ICSC) and frequent participants in ICSC trade shows, Hanover Park officials were aware of a growing phenomenon — the power center. As opposed to an enclosed mall, power centers are open-air centers with several anchor tenants. Lower overhead costs make them ideal for discount chains. The power center fills the gap between the neighborhood center and the regional mall.

Upon reviewing the demographics and traffic patterns, Hanover Park officials were convinced that this was an ideal location for a power center. The site, however, was less than ideal. With the soil conditions and ownership problems, no developer would look twice at the site. It was clear that nothing would happen without some government intervention.

Hanover Park officials decided to establish a Tax Increment Financing (TIF) district to assemble the land and a Special Service Area to pay for some much needed public improvements, including water and sewer mains, streets, traffic signals, sidewalks and landscaping. The site could then be transferred to a developer for construction of the center.

Tax Increment Financing uses the increased tax revenues generated from a development or redevelopment project to pay bonds that are issued for a public purpose. Satisfying the criteria for establishing a TIF district was easy; the site was clearly blighted. Finding a developer would be a greater obstacle.

Requests for proposals were sent to contacts that had been made through ICSC. Following presentations from two developers at a public hearing, Hanover Park officials selected First National Realty and Development Co., Inc. as developer.

While First National finalized development plans, Hanover Park officials successfully negotiated with 14 property owners and 8 tenants to acquire the necessary 30 acres at a cost of $9.24 million. Major tenants including Cub Foods, Burlington Coat Factory, Venture, Sam's Wholesale Club, and Wal-Mart signed leases. Outlets were leased or sold to White Castle, Bakers Square, Citicorp Savings, Showbiz Pizza, Hardee's, Coconuts, and Chi-Chi's Mexican Restaurant. Additional property was planned for light industrial use.

Demolition of the existing dilapidated center began in February 1988. Shortly thereafter, over 1700 piles were pushed through the peat 70 to 100 feet into the stable soils. These piles support a portion of the shopping center and parking lot.

Cub Foods celebrated its grand opening in July 1989. Other stores including Giant Auto, Jo-Ann Fabrics, and Chernin's Shoemart Express quickly followed suit. With the exception of a few outlets, the center is virtually complete. Only a few spaces remain to be leased.

Was the project worth all the effort? Hanover Park officials think so. They took an underdeveloped eyesore and turned it into a showpiece. According to Vil- lage President Sonya Crawshaw, "Westview Center is a reality today because of the vision and efforts of many people. Difficulties too numerous to mention were identified and resolved because we all believed so strongly in the project. An excellent location with a myriad of problems is one of the area's most viable centers today because of the determination and dedication of all the principals involved. It was exciting and very gratifying to have been a part of it all." •

Page 8 / Illinois Municipal Review / February 1991