Lake County receives $4M to clean up North Chicago site for future development; ‘The vision is big’

Environmental remediation plans for a 40-acre site in North Chicago received a $4 million grant from the U.S. Department of Housing and Urban Development, prompting the city, Lake County and the federal government to begin preparing the brownfield site for future redevelopment.

At the northwest corner of Martin Luther King Jr. Drive and Sheridan Road, the Sheridan Crossing site remains empty due to soil contamination. Adjacent to the downtown area and across the street from the Great Lakes Naval Base, the property is a prime location for development in North Chicago, according to the city’s chief of staff Greg Jackson.

“This has been a long time coming,” Jackson said. “Our ability to put shovels in the ground is because of securing the funding. As you can imagine, remediation is not an inexpensive endeavor.”

With the help of U.S. Rep. Brad Schneider, D-Highland Park, Lake County secured $4 million in Community Project Funds from HUD. Jackson estimates the project will cost about $7 million.

North Chicago also received Rebuild Illinois funds from the state Department of Commerce and Economic Opportunity (DCEO) to help pay for the site’s remediation.

The city of North Chicago took ownership of the Sheridan Crossing property after bankruptcy filings in May 2006 and 2008, according to North Chicago officials. Each bankrupt owner walked away from the combined 40-acre property, leaving the city with due care and responsibility for the brownfield – land that is abandoned or underutilized due to pollution from industrial use.

A foundry — a factory that produces metal castings — was one of the previous industries on the site, according to Jackson. The property has since been razed.

At the northwest corner of Martin Luther King Jr. Drive and Sheridan Road in North Chicago, 40 acres of land remains vacant due to soil contamination. An estimated $7 million environmental remediation project with the city and Lake County received a $4 million grant from the U.S. Department of Housing and Urban Development. (Chloe Hilles/Lake County News-Sun)

The environmental remediation will be a “traditional dig and haul,” according to Dominic Strezo, environmental project coordinator at Lake County. The entire remediation process will be overseen by the federal Environmental Protection Agency (EPA).

Due to the contamination, some of the soil will be treated on-site to reduce the pollutant levels before excavation to allow for traditional disposal at a landfill, Strezo said.

After it’s been determined the site has a clean bill of health, and receives a “no further remediation” letter from the EPA, redevelopment on the property can begin.

North Chicago has some ideas in mind for how the site can be redeveloped to best suit the city’s needs. Jackson said the city has already been approached by, and is beginning discussions with developers.

An entertainment venue, mid-sized hotel and mixed-use development of eateries and housing are some of the potential ideas for the 40-acre space, Jackson said.

“The vision is big, but what’s fortunate for the city is that the interest is equally as large,” he said.

The next steps for the county in the remediation project include finalizing an agreement with HUD for the allocated funds, and negotiating an intergovernmental agreement (IGA) with North Chicago to define roles and responsibilities between the two government entities.

“All of our partners from an intergovernmental standpoint have been great,” Jackson said. “Lake County has been terrific, and Congressman Schneider has been an enormous help with securing some of the funding.”

The grant is one of the largest the county has received from HUD, Meyers said. Previously, the county has received awards between $500,000 and $2.5 million for public works projects.

Because Lake County is the applicant and recipient of the federal funds, the county will take an administrative lead on the processes, Meyers said. The HUD money is a reimbursement fund to the county that will then be repaid to North Chicago.

Meyers said the county anticipates finishing the agreements and receiving the funds at around the same time, which he said could take between four to six months.

chilles@chicagotribune.com

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