WESTVIEW CENTER:
Hanover Park's Redevelopment Success Story
By GLORIA M. STAHOS, AICP
Village Planner, Village of Hanover Park
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