It’s back to the drawing board for Clarendon Hills officials as they seek answers for village-owned property along Walker Avenue, where they hope to add a restaurant or residential units.
The village was in advanced discussions with a developer for a mixed-use project, anchored by a local restaurant group, at 104 Walker Ave. But the developer has withdrawn its application because of financing issues.
“The developer was extremely open with us, so it was not a surprise,” village manager Zach Creer said, noting they “determined it wasn’t feasible in this interest rate environment.”
“The village wasn’t interested in waiting for the next rate cut cycle to gauge feasibility and preferred to seek alternatives,” he said.
So, Clarendon Hills officials are going back to the drawing board to find a different developer. But there are at least three already interested, Creer said.
“We have multiple developers waiting in the wings, but (having to go through that process again) certainly costs a few months,” he said.
At least the timing of the withdrawal was right, Creer said.
“Better now than after getting through the entitlement (zoning) process,” Creer said “Unfortunately, this is part of the development process. The two big hurdles are entitlements and financing. Having sat on the Arlington Heights Housing Commission for years, lots of projects failed due to lack of financing even after getting the entitlement process completed.
“They were pretty much finalized from a redevelopment agreement perspective, but not from an entitlement perspective, as they were still at zoning concept approval under the planned unit development process.”
The village earlier this year purchased the .6-acre site at 104 Walker Ave. for $1.4 million. That space, along with the 2000 purchase of a parcel at adjoining 301 S. Park Avenue for $237,000, combines to make up the property on which officials are hopeful for development.
Creer said any new development likely will include both parcels.
“Nothing is certain, but it’s likely,” he said. “Our code requires large setbacks between zoning districts, so the land is necessary to accommodate those requirements if the property is up-zoned.”
Creer said the village has had this property in mind as a development opportunity since at least 2014, when the Downtown Master Plan was created.
“Most parcels are difficult to develop in the downtown because they are very small and have different owners,” he said. “This was a unique opportunity to join a village-owned lot on Park Avenue with this parcel at 104 Walker to make a larger development lot.”
Creer said the property at 301 S. Park Avenue likely has appreciated in value to about $400,000 from the $237,000 purchase price. The village spent a total of $1.637 million on the two parcels.
“The village expects to get back its investment in the land from a sale to a developer,” he said.
The village entered into a contract with a developer in 2021, only to have that deal fall through. More recently, the village received plans that were presented to the public in September of 2023, but that also failed to work out.
“By the village buying the property, the village believes a deal is much more likely to happen, and that also it will allow the village to work with a high-quality developer,” Creer said. “There is a significant financial benefit to the overall downtown by adding an additional restaurant and more residential units. It adds to the business atmosphere and provides customers for the downtown core.”
Chuck Fieldman is a freelance reporter for Pioneer Press.
