East Dundee's former Wal-Mart rezoned to allow industrial, commercial uses

A redevelopment project in East Dundee that would turn a shuttered Wal-Mart property into an industrial business park is moving forward after trustees gave a thumbs-up to a developer's rezoning request.

Plote Property Management LLC plans to repurpose and expand the vacant 115,000-square-foot structure at 620 Dundee Ave. to create a multi-tenant commercial and industrial building, according to the company's proposal. The East Dundee Commerce Park project would also include constructing two new 28,000-square-foot buildings on the existing parking lot.

"This will increase the tax base, create over 200 new jobs and will create an economic spillover where new employees and business owners will be buying and doing business within the village," said Ryan Trottier, Plote's vice president of land development.

The property, which has been vacant since Wal-Mart moved to a new store in Carpentersville last June, was zoned as a service business district. The village board voted 4-1 Monday to change the property's zoning to a limited manufacturing district, giving Plote the green light to move forward.

Plote is not seeking any financial incentives from the village on the project, which is expected to cost between $12 million and $15 million, said company President David Plote. The company plans to purchase the property, he said, though the sale has not yet closed.

Trustee Jeff Lynam, who voted against the measure, said he believes more effort should be put into attracting big-box retailers to the site to replace Wal-Mart, which generated more than $800,000 in annual sales tax revenue for the village.

"I'm not against the idea of a project like this, but I would like to see us explore more opportunities to bring back the type of retail we had," he said.

But Plote representatives, who have been working with outside firms to determine the site's best use, said it isn't garnering long-term interest from such companies, and the location would no longer serve as a viable retail destination.

There is, however, a demand for the light industrial use that would be the focus of the new mixed-use development, David Plote said. The company has recently had to turn away businesses interested in its nearby Rock Road Industrial Park, which is 97 percent full.

Many of the tenants at the East Dundee Commerce Park may have a retail component that will generate sales tax, he said, noting retailers and other types of businesses would also be welcome.

"This is some different space where we'd be able to be more flexible," Plote said. "It makes sense all the way around. The market has changed. It's a different world now."

The company will fine-tune development plans and start seeking tenants right away so it can begin retrofitting the Wal-Mart building, which will also get an exterior facelift, Plote representative Kurt Kresmery said. The project's proposed 30,000-square-foot addition to the Wal-Mart structure and construction of the other two buildings will be phased in based on market demand.

"This is an opportunity to fill this space," Trustee Dan Selep said. "If we don't do this, I could see other nearby businesses closing down or leaving. I'm all for this."