The Economic Development Committee of the Evanston City Council voted unanimously Wednesday to consider a proposal that would subsidize planned development on Sherman Avenue by $2.5 million.
The full council will vote Monday to decide whether it will make available $2.5 million from tax-increment finance (TIF) districts to aid the Sears, Roebuck and Co. component of the development, said City Manager Roger Crum.
The $100 million project, which has been under consideration since June 1999, includes a parking garage, a 200-unit senior residential complex and smaller retail components in addition to the Sears department store. Construction of the project would result in the demolition of the Sherman Avenue parking garage, as well as the possible relocation of several stores in the area.
The concern for funding came about when the developers Thomas J. Klutznick Company and Horizon Group Properties Inc. were working out the preliminary development agreements with Sears, Crum said.
“The basic representation has been made that Sears marketing consultants have developed sales projections of the store that differ from those of city staff and consultants,” said Ald. Edmund Moran (6th). “The Sears figures are more conservative and lead to the belief that there is a gap that needs to be filled by the city.”
Because of continuing negotiations for the development, the starting date of construction has been moved to late winter or early spring of 2001, Moran said. The construction, which will involve the demolition of several buildings, was originally supposed to begin this spring.
The later starting date will aid in downtown parking problems that would have occurred if the Sherman Avenue garage were torn down before a new one on Maple Avenue is constructed in the fall.
“It works out better for us,” Crum said. “We wouldn’t want to see delays if the new garage weren’t opening.”
City officials said the altered timeline is necessary because the department store is crucial to the completion of the entire project.
“The driving component is Sears,” said Ald. Gene Feldman (9th). “Without Sears, the current Klutznick project won’t happen, and we’d have to start from the beginning.”
Feldman, chairman of the EDC, said there is every reason to believe that with the proposed subsidy, the Sears element will come through.
Representatives from Thomas J. Klutznik Company did not return phone calls Thursday afternoon.
In addition, an agreement was made between the city and contractors detailing the possibility that the city will be reimbursed for the difference in the subsidy and actual funds used, Feldman said. Although the actual amount still is to be determined, there is a possibility of up to a $1.5 million return, he said.
Feldman said the combination of the Klutznick project and the Church Street Plaza project will mean a dramatic change in the perception of Evanston as a center for shopping.
“All of these (developments) compliment each other,” Feldman said. “Each one of these draws people to Evanston and once they come, they will see other reasons to come back.”
City officials say other problems in land acquisition, design and access from alleys to the area still need to be solved before the proposal is finalized.
“There are many steps left to go,” Crum said. “Indicating our willingness to subsidize the project is the first step.”
