Plans remain on hold for a 35-story retail and residential development that would likely reimagine retail shopping for Northwestern students in downtown Evanston.
The proposed Fountain Square tower, 708 Church St., would bring more than 18,000 square feet of retail space and 218 residential units to downtown Evanston.
“The project at Fountain Square is still an active project. We’re waiting for the condominium market to return,” said a representative from Focus Development, one of the developers responsible for the project.
The Fountain Square tower was put on hold in 2009 after its developers requested an extension to complete the project due to the economic climate, according to documents submitted to the city.
The Fountain Square tower, originally proposed to be 523 feet tall in 2007, promised to be the tallest building in downtown Evanston and created a controversy among residents concerned about how such a large development would affect locally owned stores.
The latest plan submitted in 2009 proposes a 35-story building of 385 feet, according to documents submitted to the city February 2009 by Focus Development and Klutznick-Fisher Development Company.
It continues being difficult to anticipate how the development will affect Evanston once implemented because the residential housing market remains quiet, said Dennis Marino, the city’s assistant director of community and economic development .
“I think we’ll have to wait and see,” Marino said. “It’s still in the developer’s court and their ability to develop financing.”
Evanston currently has 446 active condominium sales on the market, which is higher than the usual 250 or 300 sales, said Steven Sims, a Coldwell Banker residential real estate agent who has worked in Evanston’s condominium market for 14 years.
Last year, 421 condominiums were sold in Evanston, a figure that would normally be closer to 1,000, Sims said.
Along with single-family homes, condominiums make up an integral part of Evanston’s real estate market, he said.
“It’s so flooded with inventory right now because of the economy,” Sims said.
Housing market prices are expected to hit rock bottom in the next 18 months as banks release more of their foreclosed properties onto the market, Sims said. This makes it likely prices will plateau and increase in small increments after this period, he said.
The Fountain Square development must apply for a building permit by Dec. 31, 2013, after which they will have 30 months to construct the building, according to city documents.
“2013 may be the perfect target date for them,” Sims said. “If they price appropriately, they’ll probably be in a great position to get some sales under their belt.”
This could have a huge impact on Evanston’s condominium market by attracting buyers, he said.
“Who wouldn’t want new construction?” Sims said.
While the Fountain Square tower is projected to benefit the city and the local school districts, Evanston’s Chamber of Commerce supported the development for other reasons, Executive Director Jonathan Perman said.
“An even bigger impact is it will create jobs in both a temporary and permanent nature and create a demand for more business services,” Perman said. “Having more people living in your downtown will boost other businesses.”
Perman said positive economic signs such as a decreasing unemployment rate, increasing volume of residential sales and pricing starting to pick up make him optimistic the project will happen.
