By Rebecca HuvalThe Daily Northwestern

City officials expect Evanston’s decade-long development boom to continue this year, although the dollar value of new construction is projected to drop from the previous year’s record level.

In fiscal year 2005, Evanston approved the unusually large Sherman Plaza project, which was valued at about $100 million, said James Wolinski, the director of Evanston’s Department of Community Development.

“We’re down from last year, but it was certainly a solid year,” Wolinski said. “We keep on setting records for ourselves with development, and it’s hard to match the pace every year.”

Construction approved by the city from the start of the 2006 fiscal year until December was valued at $172 million, compared to $227 million during that time period in 2005, according to a city report. The city estimates construction in the full 2006 fiscal year will be worth between $200 million and $210 million.

The larger projects approved in 2006 include a 165-unit condominium at 1881 Oak St., two 10-story buildings at the intersection of Davis and Hinman streets and a 200-unit rental building at 413 Howard St.

“Evanston continues to be a very hot market,” said Jonathan Perman, the executive director of the Evanston Chamber of Commerce.

Development in Evanston has increased steadily during the past decade. When city officials in the ’90s thought activity in the downtown area was lagging, they worked to revitalize the area with retail and residential buildings.

“Fifteen years ago, no one was coming to downtown Evanston in the evening,” Wolinski said. “The city said, ‘If people will not come downtown, we’ll have them live there.’ That’s where mixed-use (retail and residential) development came in.”

The increase in construction also increased Evanston’s tax base. Every new condominium adds about $4,000 to property taxes, Wolinski said. But the taxes don’t just finance the city. They are the primary funds for Evanston’s two school districts.

Evanston continues to interest developers because of its location on the lakefront. Adding to its appeal is the city’s proximity to university and two major rail lines, which allow residents to work downtown, Wolinski said.

“It’s easier to buy a condo in Evanston than in Lincoln Park,” he said. “We’re the alternative to Lincoln Park without the congestion.”

City officials said they expected developers to be less attracted to Evanston when interest rates increased a year ago.

They went up about 2 percent for single-family homes and condominiums, but construction remains steady, Wolinski said.

Some developers overlook Evanston because of its approval process, said Ron Fleckman, president of Cyrus Homes. Projects with 25 units or more must be approved by the city and be presented in a public hearing.

Developers must pay architects before they can submit plans to the city, and they have a lot of money at stake. For his proposed project at 1600 Foster St., Fleckman said he pays an architect $25,000 a month.

“It becomes challenging if you don’t know where you’re going to be at the end,” he said. “That’s an issue in Evanston. I know the city’s working to expedite that. I think they have the steps most communities have, but the decision making has just been slow and has not been developer-friendly.”

The city’s process to approve developments helps the community, Wolinski said. Residents can voice their opinions, and the city can choose buildings by their merits. Most projects are rejected for being too tall, he said.

“Eventually, we will reach a saturation point,” he said. “But banks are still financing projects in Evanston. Eventually, Evanston will say, ‘We have enough high rise development’ and we can sit back and catch our breath.”

Many Evanston residents already are concerned about overdevelopment. Members of advocacy group Friends of Central Street and Central Street Neighbors said they worry about increased traffic and density.

At a recent Evanston City Council meeting, the group asked the city to reject a four-story retail and residential building.

“Council has an obligation to improve the neighborhood and the tax base,” said Friends of Central Street member Harvey Dershin at a council meeting. “We as residents have our own needs to protect our environment … What’s made Central Street so special and so unique, it won’t add to that.”

Richard Forsland, of Rogers Park, said he shops in Evanston three to four times a week. He said the city’s developments should be planned more carefully.

“There’s something disturbing about the scale (of the new developments),” Forsland said. “It’s a little too large and it’s starting to get a little claustrophobic.”

But some residents said they support new projects.

“I think it represents progress,” said Greg Hall, 27, of Evanston. “It encourages a positive outlook. New things lead to optimism.”

Perman said residents will be receptive to new high-rise buildings, especially those near train stations that encourage residents to use public transportation.

“We’re interested in a city that’s sustainable,” he said.

Reach Rebecca Huval at [email protected].