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Home Business • Finance

Northbrook Trustees approve redevelopment of Northbrook Court

by Edinburg Post Report
November 3, 2023
in Business • Finance
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Northbrook Court is on its way to redevelopment after the Northbrook Village Board on Oct. 30 voted in favor of the shopping mall’s latest redevelopment package.

“This is just going to be phenomenal,” Northbrook Village President Kathryn L. Ciesla said.

The special meeting was added with short notice after amended requests by Brookfield Properties, Northbrook Court owner since 1995.

Standing, far right, Ben Freeman, senior vice president of Brookfield Properties Development, talks with neighbors after at the Special Meeting of the Northbrook Village Board of Trustees at Northbrook Village Hall on Oct. 30, 2023. (Karie Angell Luc/Pioneer Press)

Monday night’s approval established a business district, a new tax increment financing district (TIF), and the dissolution of a 2019 TIF covering 17.65 acres of the property’s west side (Macy’s).

“I’m proud, happy and enthusiastic to move this forward, Trustee Robert P. Israel said.

The new TIF assists in funding mall redevelopment with a 1 % tax (projected to be effective July 2025) added to a shopper’s Northbrook Court business district mall receipt. A TIF can last up to 23 years.

For example, The Glen TIF, established in 1998 to redevelop the former Naval Air Station in Glenview, closed on Dec. 31, 2021.

The approved Northbrook Court TIF and business districts cover the 104.12 acre Northbrook Court property except for two close proximity to Lake Cook Road bank outlots.

Northbrook Court opened in 1976 and Brookfield Properties will redevelop 96.42 acres. Retailer Neiman Marcus owns a 7.7-acre parcel which includes its parking lot.

Village handout

Village handout (Pioneer Press)

Ben Freeman, senior vice president of Brookfield Properties Development, told Pioneer Press in a statement that Oct. 30, “marked the next major step in the evolution of Northbrook Court into a vibrant retail, dining and residential anchored mixed-use neighborhood.

“We appreciate the village’s continued partnership and commitment, and are grateful for the community’s ongoing support to bringing this meaningful project to life,” Freeman said. “We are excited to build on our progress to date and look forward to sharing updates along the way.”

Thirteen sub areas of the Northbrook Court site have been designated to develop with their own requirements as the mixed use mall reconstruction launches. Areas closest to Lake Cook Road will be developed first with priority as high end retail areas.

Last May’s predevelopment agreement launched with the village and Brookfield Properties identified a gap then of $90 million with an Oct. 30 project estimate of $825 million.

The village is not pledging existing taxpayer money to fund the project, Village Attorney Steve Elrod told trustees on Monday night.

“We wanted to make sure that we had a deal that was viable, that was realistic, and that could actually be developed, but yet one that was fully protective of the village,” Elrod said.

Expenses for all outside consultants, including legal, are being fully paid for by Brookfield Properties with no taxpayer money, Elrod also said.

Northbrook Court redevelopment was supposed to be in front of village trustees for approval at the end of September. But on Sept. 21, Brookfield Properties asked for an extension to the Redevelopment and Economic Incentive Agreement (REIA) and the village agreed.

Brookfield Properties has asked for multiple extensions on its redevelopment with COVID-19 pandemic challenges among reasons.

A Joint Review Board (JRB) met last July after reviewing the proposed TIF district and was unanimously in favor of the TIF. JRB members were Northbrook Court revenue stream beneficiaries including the village, Cook County, Glenbrook High School District 225, Northbrook School District 28, Northfield Township and the Northbrook Park District.

The mall currently has nearly an estimated 5,000 parking spaces. The approved plan includes covering underused impervious surfaces with green space and preferred build out. A commons area for community and mall events is included at under one acre west of Neiman Marcus.

Neiman Marcus at Northbrook Court on Oct. 30, 2023.

Neiman Marcus at Northbrook Court on Oct. 30, 2023. (Karie Angell Luc/Pioneer Press)

The Brookfield Properties package includes a one-acre land donation to the west of the property for a new fire station immediately south of Lake Cook Road.

The new fire station will not replace any of the three stations in Northbrook and would be a welcome addition to service the east side of Northbrook close to the Edens Expressway, according to Northbrook Village Manager Cara Pavlicek.

Brookfield Properties will also donate 1.5 acres of land, worth $3.5 million, for the construction of a 100% affordable housing complex at up to 75 units.

Brookfield Properties agreed to a penalty of possibly up to $5.8 million if the developer does not find a qualified affordable housing builder within 12 months of the land donation to the village.

Trustee Daniel H. Pepoon said, “I think the affordable housing issues that we’re addressing are acceptable to me.”

Trustee Heather E. Ross expressed disdain by voting no on an amended land use ordinance.

Right, Northbrook Village Trustee Heather E. Ross at the Special Meeting of the Northbrook Village Board of Trustees at Northbrook Village Hall on Oct. 30, 2023.

Right, Northbrook Village Trustee Heather E. Ross at the Special Meeting of the Northbrook Village Board of Trustees at Northbrook Village Hall on Oct. 30, 2023. (Karie Angell Luc/Pioneer Press)

“I’m not comfortable with the affordable housing proposal,” Ross said. “I’m just concerned that here we’re starting to set bad precedent.”

Trustee Muriel J. Collison said, “I’m very excited about this project.”

Collison indicated Ross had valid concerns about the affordable housing component and, “Yes, I’d love to see more done for the affordable housing portion.”

But, “I just cannot throw out the baby with the bathwater,” Collison added. “We need this development.

“I’m so excited that you guys want to invest this kind of money into our community,” Collison said. “Our schools need it. Our community needs it.”

Trustee Johannah K. Hebl said, “I’m very excited about this development.

“We, as a village, have been waiting and waiting and waiting for this development to proceed,” Hebl said.

Northbrook Village Trustee Johannah K. Hebl at the Special Meeting of the Northbrook Village Board of Trustees at Northbrook Village Hall on Oct. 30, 2023.

Northbrook Village Trustee Johannah K. Hebl at the Special Meeting of the Northbrook Village Board of Trustees at Northbrook Village Hall on Oct. 30, 2023. (Karie Angell Luc/Pioneer Press)

“We’re all sick of buying online, we want to go and shop in a retail environment so I think we’re ready and there’s dollars out there that can’t wait to be spent at Northbrook Court,” Hebl said.

Hebl added, “I’ve never seen the parking lot full at Northbrook Court.”

Additionally, the vacant, fenced in and now visibly weedy and crumbling asphalt parking lot to the west by the former Macy’s will not be used this year for a holiday drive-through light show.

The seasonal show, while an alternative paid entry holiday festivity option during the COVID-19 pandemic, received negative neighbor feedback, including by town home residents bordering the west of the site.

Kaire Angell Luc is a freelance reporter for Pioneer Press.

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