Heights Council mulls options for business district

by Meg Sullivan
staff reporter

City Council members have varying opinions on how best to bring businesses back into Palos Heights and prevent the Harlem Avenue central business district from crumbling, but the bottom line remain the same — action needs to be taken immediately.

The City Council held a committee of the whole meeting on June 23 to discuss economic development ideas and incentives for the future of Palos Heights.

The meeting follows on the heels of a meeting June 16, during which the City Council unanimously adopted new commercial areas design and development guidelines prepared by planning consultant Houseal Lavigne Associates. The guidelines give direction for new development or updating existing shopping centers.

In the last year, several businesses in the central district have closed or moved to different towns including; 7-Eleven, Wildflowers, Mona & Co., Vela's Furniture, Take Me Home and Gourmet Coffees. Ben Franklin will close within weeks and Blockbuster Video next door is not expected to renew its lease after this year.

The City Council members agree that change is desperately needed as many bold statements were made at the meeting, highlighting the desperate economic times.

"I think we need an economic development director," stated Alderman Art Phillips (4th Ward). "We need professional help, whether it be $40, 50 or 60,000 [salary for the position]."

Alderman Alan Fulkerson (3rd Ward) disagreed. "I think we should make Harlem Avenue a TIF [tax increment financing] dis- trict from 119th to 131st Street. It's blighted, the buildings are falling apart, the stores aren't big enough and there is not enough parking," he said.

Tax increment financing is a public financing method used for redevelopment and community improvement projects. It dedicates tax increments within a certain defined district to finance debt issued to pay for the project. TIF is designed to channel funding toward improvements in distressed or underdeveloped areas where development might not otherwise occur.

Fulkerson continued, "You have to assemble a large tract of land and formulate a forward thinking plan. We have a unique opportunity to assemble a piece of property."

He also voiced his frustration with the City Council being blamed for businesses closing.

"We've lost places like Rini's because of Walgreen's and CVS and we lost Ben Franklin because of Target and Lowe's. That's the evolution of the economy. Now, all the sudden, we are being blamed. Unfortunately, we're in the middle of a recession. People in this town need to realize it's gonna sit there for a while [the piece of property with Ben Franklin and Blockbuster Video on it]. Economic development is not going to happen in the next 12 to 24 months. We need to visit the issue again in 12 months. We need to decide what we want. If we create a TIF, it will freeze the level of taxing."

Mayor Bob Straz previously said that some property owners do not want to improve their property because it would raise their real estate taxes.

Straz pointed out that Tinley Park's new downtown area was all done with tax increment financing, while Alderman Jack Clifford (2nd Ward) warned that there would still be complaining from other taxing bodies if a TIF district is created.

"I'm not opposed to TIF'ing Harlem Avenue and one thing we do have is good schools," Alderman Jean Gnap (1st Ward) said. "They are in good shape, so it's not like we are jeopardizing them."

Treasurer Frank Oswald offered his two cents. "We've invested in two economic plans. Those plans address almost everything we have discussed tonight. I think what we're missing is a mechanism to implement these plans. We don't seem to have an implementation plan." Oswald referred to the Comprehensive Plan and the Yas plan, which is a long-term concept of where buildings could be placed along Harlem Avenue.

Oswald added, "I've never been a proponent of throwing money at problems, but we're talking of critical areas. An investment in a professional person to plan implementation would be a good one. If we wait, we will lose time and lose the fruits of our labor."

City Administrator Dan Nisavic said he will put in writing a summary for the council on how city staff has started to implement Houseal Lavigne's Comprehensive Plan, including working with Lake Katherine on improving the Harlem Avenue underpass near it and putting together promotional packages to attract new businesses.

"We are doing proactive things," he promised.

Gnap asked one more favor of her fellow council members, eluding to the treatment of the North-Pointe developers, who have had a back and forth with the council for years before gaining approval. "When we do get developers in, can we at least be neutral or nice to them?" she quipped. "They are not the bad guy. I'm asking for an attitude change."

This is part of the July 2, 2009 online edition of The Regional.

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