When the dust settles, Evanston will re-emerge stronger and rejuvenated, developers say — or at the very least, 25 stories higher.

The construction of Sherman Plaza has been under way since fall, but planning for the retail and condominium project began five years ago. Despite the wait, some say the benefits to downtown Evanston will be widespread.

“This is the largest, single-downtown redevelopment in suburban Chicago,” said Tim Anderson, president of Focus Development, one of the development companies responsible for Sherman Plaza. “This is a key block, kind of a ground zero of Evanston. I think it’s going to re-energize Sherman (Avenue) in a big way.”

The development has seen a number of changes in tenants. Lakeshore Athletic Club has been replaced by an Elizabeth Arden Red Door Spa and a Sears store pulled out of the project.

Set to open next year, Sherman Plaza — bordered by Benson and Sherman avenues and Church and Davis streets — will include 253 condominiums, a parking garage and 152,000 square feet of space for retailers and a health club.

Stores currently slated to fill the space include Pier 1 Imports, Ann Taylor Loft and the Barnes & Noble Booksellers, which is currently located at 1701 Sherman Ave.

James Klutznick, another developer for Sherman Plaza, said the new stores would create a “critical mass of retailers.” With a greater variety of stores, he said, more customers will visit the downtown area, which will help downtown to grow even more.

“(The plaza) will have a positive impact on the street, and from the areas around us we’ll attract more first-class types of retail,” Klutznick said.

Even retail and condominium developments that could compete with Sherman Plaza said the project would help them. Bruce Reid, executive vice president of Arthur Hill & Co., the company that developed Church Street Plaza, said customers could park in the Sherman Plaza garage and then shop at both plazas.

“I think any time an area offers more choices, more interesting and appealing destinations, it’s good for consumers,” Reid said.

But what’s good for consumers might not be good for Evanston as a whole, said an employee at Edward’s Shoes, 1627 Sherman Ave. Edward’s is an independently owned retailer. The shoe store will be turned over to Hanig’s Footwear, a national chain, in July.

“Our type of store is a dying breed,” said Christian Soto, who has worked at Edward’s for more than three years. “Despite having three generations worth of customers, we are already being sold.”

Soto said once his store changes ownership, it will fit in well with the mix of upscale, national chains moving into Sherman Plaza. But the trend toward national instead of independent stores takes away from the unique aspects of Evanston, he said.

“I’m disappointed that Evanston is no longer the Evanston it once was,” Soto said. “It’s becoming another Chicago. I don’t want to feel like I have to go out to Gurnee to feel like I’m away from the city.”

Focus Development’s Anderson said independent stores could benefit from larger ones. Smaller bookstores could “feed off” business from Barnes & Noble, he said.

Diane Williams, executive director of EVMark, a downtown marketing organization, said the biggest benefit of Sherman Plaza could be parking space. The Sherman Avenue parking garage came down last summer for structural reasons.

“The parking garage is something the merchants are really looking forward to having back,” Williams said.

Reach Lee S. Ettleman at [email protected].