Vacant 25-acre Palatine site to be redeveloped into two business buildings
A vacant 25-acre site across from an Amazon distribution center in Palatine will be redeveloped under a plan expected to create about 250 jobs.
The site used to house manufacturer Weber-Stephen Products and became vacant in stages, starting in 2018 and ending in late 2019. It comprises the addresses 200-350 E. Daniels Road, 200 S. Hicks Road and 1 S. Sellstrom Drive, and it's bordered to the north by the Union Pacific railroad.
Midwest Industrial Funds plans to redevelop the site into two industrial buildings - a westerly building of 275,388 square feet and an easterly building of 153,043 square feet - with parking lots and interior truck docks between the buildings.
The property will be marketed for uses such as distribution/warehouse, light assembly, light manufacturing and corporate headquarters, village officials said.
The village council approved the final plan and rezoning for the property Monday night. The plan commission previously recommended approval after a public hearing.
Several entities had expressed interest in the site, and Midwest Industrial Funds, based in Oak Brook, was the first to file for zoning approval, Village Manager Reid Ottesen said. Ottesen called the project "a significant redevelopment for the community."
"The impact both economically and aesthetically of a 25-acre manufacturing site sitting vacant for an extended time can be significant," he said.
"To have someone acquire the property and make a $40 (million) to $50 million investment along with significant job creation will have a long-term benefit for the village and the taxpayers."
Ottesen also said the development will improve some drainage problems in the surrounding neighborhoods.
Council members on Monday also gave their support for the property to apply for 6b tax classification in Cook County. Normally, the property would be assessed at 25% of market value. Under 6b classification, it would be assessed at 10% of market value for the first 10 years, 15% in the 11th year and 20% in the 12th year.
Under 6b classification, the property with an estimated $40 million value would generate about $15.4 million in 12 years. At its current market value of about $14 million, the property would generate about $12.6 million in the next 12 years, village officials said.
The Amazon delivery station was built last year at 315 S. Hicks Road; the village council gave its support for 6b tax classification for that property, too.
The plan for the former Weber-Stephen site includes landscaping such as plantings and an 8-foot fence along the northern edge that will provide screening for residential properties north of the railroad tracks.
On the west side of the western building, next to residential properties along South Oak Street, there will be a gated entryway to be used only for emergencies.
"(The plan) seems to address all of our concerns as well as the public's," said Councilman Doug Myslinski, who chairs the community and economic development committee.
Each new building could accommodate one to four tenants. Village staff members will need to review business and operations plans for proposed tenants before business licenses are issued.