The details already hashed out, Evanston City Council approved the final agreement for the Sherman Plaza Monday night with surprisingly little debate.
The council voted 8-0 in favor of the project, with Ald. Ed Moran (6th) absent.
The Sherman Plaza redevelopment agreement, a $100 million commercial and residential development, has been in the works for two years. Plans include 135,000 square feet of retail space, 178 apartments for senior citizens and a 1,400-space parking garage.
“We believe this is a feasible project and a very good project for Evanston,” said Asst. City Manager Judy Aiello.
The project will take up most of the block of Sherman Avenue between Church and Davis streets. James Klutznick, of developer Thomas J. Klutznick Co., is scheduled to complete the purchase of the land on that block next week for $14 million.
The redevelopment will not have an “anchor” store, Klutznick said. Originally, Sears, Roebuck and Co. had considered opening a store in Sherman Plaza, but instead, the new retailers will be “intermediate size,” he said.
Demolition of existing buildings on the 1600 block of Sherman should begin some time after Jan. 1, 2002, with the first stores slated to open in the spring or summer of 2003, Aiello said. The apartments for seniors would open the following fall. City Manager Roger Crum called the schedule “possible and likely.”
There is, however, one possibility of change in the agreement. Aiello said if senior apartments are hard to fund because there are too many currently on the market, Klutznick and the city will discuss other residential options such as market-rate apartments or condominiums. Such rentals would generate more property tax than apartments for seniors.
Aldermen hope the Sherman Plaza project will generate much-needed property and sales tax revenue for the city. Klutznick estimated that Sherman Plaza would bring in about $350 sales tax per square foot, or $47.2 million. But the city’s consulting firm, Kane, McKenna and Associates, came back with an estimate of $250 per square foot, which it called conservative.
The project was designed so that it would not require raising property taxes. Klutznick will supply the initial funds to buy the necessary land, and the city will pay for the new parking garage with the money from two tax-increment financing districts.
In other business, the council voted unanimously to adopt new budget policy guidelines for fiscal year 2002-2003. The guidelines suggest that increases in general fund expenditures be capped at 3.4 percent.
Even though the vote was unanimous, not all aldermen were happy with the guidelines.
“It asks staff to do what we have been unable to do,” said Ald. Art Newman (1st), saying that in order to keep spending within tight bounds, it would be necessary to cut programs. “Those types of recommendations are not appropriate to be developed by staff.”
Ald. Lionel Jean-Baptiste (2nd) said he thought the policy guidelines needed to stretch beyond the coming fiscal year. He also noted that it would be difficult for residents to accept program cuts when they see new developments like Sherman Plaza being constructed.
Ald. Melissa Wynne (3rd) said that the budget committee had been working on two parallel processes to develop guidelines: one set for the coming fiscal year and another more long-term set.
