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Randhurst Plans A Go
Friday, August 22, 2008
Article from August 22, 2008 issue of The Journal & Topics Newspapers by Richard Mayer
Mt. Prospect, Illinois — Randhurst Mall in Mt. Prospect has a little over a month of existence left until the wrecking ball moves in after village trustees Tuesday unanimously approved a $150 million lifestyle center to be constructed in its place. Casto Lifestyle Properties, co-owners of the mall, will begin demolishing the mall portion of Randhurst sometime at the beginning of October to construct a lifestyle shopping center, Randhurst Village, that will include a new theater, a 120-room hotel, second and third story office space and approximately 200,000 sq. ft. of new retail/restaurant space. The project includes a three-story storage facility and an approximate 600-space parking deck between the lifestyle center and the neighboring Boxwood apartment complex. There is also now potential for the new lifestyle center to later add 200 residential rental units to the northwest corner of the property near Euclid Avenue and Elmhurst Road. The retail component would cover approximately 20,000 to 24,000 sq. ft. The residences would be limited to a maximum density of 30 units per acre for that portion of the development. However, this component would not be implemented until the second phase of construction. Representatives from Casto said constructing those residential units could take years, but since they received approval now from the village board, it gives them the ability to develop the rental units at the appropriate time. Currently, Chase Bank and AMC theatres are located on that portion of the site. It will take some time to construct, because Chase Bank's lease doesn't expire for a few more years. During construction, expected to begin by May 2009 with a majority of the lifestyle center complete by Memorial Day 2010, the project will maintain several existing retailers including Costco, Carson's, Bed Bath and Beyond and all outlot tenants. Additionally, the current 16-screen AMC movie theater will be relocated to the east end of the property to become the focal point of the new lifestyle retail area. During the village's first reading of the project on July 15, the board discussed a wrought iron fence Costco was requesting in front of its store. Costco's purpose for installing the fence is to ensure no one parks in the store's lot prior to opening for business for the day. At that July 15 meeting, Trustee Timothy Corcoran was noticeably upset by this request and asked village staff to contact Costco management to get a better explanation of why this is needed. According to Director of Community Development Bill Cooney, he, along with Corcoran, recently met with Casto and Costco officials to relay the village's concerns with installing a fence. Cooney said Tuesday that Costco officials are not willing to back off their demands but have agreed to meet with village staff after the lifestyle center has been open for one year to evaluate the impact of the fence and determine at that time if the fence will stay or be removed. According to village officials, the fence would deter easy mobility for shoppers and would also be aesthetically unappealing. The fence would be approximately 48-inches high and heavily landscaped, according to Casto reps. In regards to financing, JP Morgan Chase and Casto asked that the village contribute $25 million in future project-generated revenues to the project. The funds will be pledged in non-recourse revenue bonds that will be backed by the following five revenue sources: * A .25% Business District Retailer's Occupation Tax. This would be a new tax on Randhurst only. * Incremental local distributive share of the sales taxes over $236.5 million. * Hotel tax that would increase the current rate village-wide from 3% to 6%. * A $.25 amusement tax on the sale of only movie tickets, which would be a new village-wide tax. * Food and beverage taxes. The $25 million will only be paid if those five revenue sources generate that amount. The village is not obliged to pay any money from existing revenue sources or from any future sources if those tax

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