The previous edition of "What's Happening With....?" covered the time period of 1970 to 2000, when Lake Zurich experienced rapid growth and suburbanization.
The development of nearly 20 subdivisions and the reorientation of commercial activity toward the auto-oriented, high-traffic Rand Road corridor had significant impacts on Main Street.
By 2000, many Main Street buildings had fallen into disrepair due to disuse or deferred maintenance, and many owners determined that rehabbing them did not make economic sense.
Through the 1990s, the community began to explore ideas to revitalize Main Street. In 1998, with technical assistance from Burnidge Cassell and Associates, the Village developed a master plan to serve as a blueprint for future downtown redevelopment. The plan showcased the lakefront as a focal point for redeveloping under-utilized properties.
The plan recommended alleviating traffic congestion with the Route 22 bypass, with the intent of making the downtown more pedestrian friendly for shops, amenities and luxury residences that would add density to the area. Mionski Drive and Lake Street were to be re-routed to Park Avenue, which would connect with Old Rand Road. The area in the vicinity of JJ Twigs ("Block A") would anchor the new downtown with shops, restaurants, a clock tower and the new Promenade along the shoreline.
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| Downtown Lake Zurich Before Route 22 Bypass - Circa 2002 |
The plan took the approach that the Village should acquire properties in the downtown area, then assemble them into larger tracts of land to be resold to private developers.
In 2002, the Village established a tax increment financing (TIF) district, which would capture the anticipated increase in property taxes from the redeveloped downtown buildings. Later that year, the Village issued a $10 million bond to finance the first round of property acquisitions, which were to be repaid by the projected incremental tax revenue to be generated by the new downtown.
In 2003, the Concord Homes Project acquired and demolished the Meyer Materials, Dearborn Chemicals, Harvey Brothers Automotive, Park Rubber, and R.A. Briggs buildings to begin construction of 147 residences. The demolition of these properties also coincided with alignment of the Route 22 bypass, which would shift traffic away from Main Street through where these factories once stood.
The next year, Charles Burnidge, in a partnership with Lucien LaGrange Architects, presented the 2004 Lake Zurich Lakefront Corridor Project Master Plan, which recommended extending the Promenade from its current location to Breezewald Park. The Village issued an additional $10 million line of credit with Cambridge Bank and exercised its eminent domain powers to acquire Dave's Gas Station and attempted to do so with the Hudson Property at the corner of Mionske Drive and Main Street, after settling a lawsuit from the property's owner.
Later in 2004, McCaffrey and Associates were selected to prepare a new downtown development plan. This plan consisted of the total redevelopment of six blocks within the confines of the area between Lake Street, Old Rand Road, and Breezewald Park.
This new plan envisioned multiple commercial sites, office suites, townhomes, and high-density residential in a mixed-use development with a unified design theme. To advance this effort, another $10 million bond was issued to finance more land acquisition and redevelopment costs.
By 2006, both the construction of the Route 22 bypass and Phase I of the Somerset Project on Lakeview Place, consisting of 27 townhomes, were underway. However, a contract dispute between the Village and McCaffrey and Associates culminated with the dismissal of the developer, leading to a lawsuit that would be settled in 2009.
The completion of the bypass successfully alleviated traffic
congestion in the future downtown area, but it also reduced its attractiveness to prospective businesses who demand greater visibility on roads with higher traffic counts.
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| Former downtown "Master Plan" - Circa 2009 |
By 2009, the predicted redevelopment of the downtown properties had not yet materialized, so the Village sought new partners to fulfill its plans.
The Village entered in an agreement with Equity Services Group (ESG), represented by David Smith, and Torti Gallas and Partners.
This team developed new plans with detailed use, form and frontage parameters for 10 distinct blocks within the Main Street area. The proposed concept included high-density residential, commercial, office, and a small number of single-family homes across this 10-block redevelopment area.
ESG had assured Village officials that it had significant financial backing from private sources and would be able to bring the project to fruition.
However, ESG announced in October 2010 that it was unable to secure the required funding and the contract with the Village expired. At their request, ESG received a 60 day grace period from the Board, but by January 2011, they could not obtain the required funding and the contract terminated.
With the collapse of ESG's financing in 2011, Lake Zurich's ambitious downtown redevelopment plans stalled.
The Village had issued a total of $30 million in debt to acquire several properties, which were neither generating the tax revenue to repay the bonds nor any closer to fulfilling the community's expectations.
The financial crisis of 2008 caused the Great Recession and made progress impossible: property values plunged, developers went bankrupt and banks were not providing anyone financing.
With the reduced traffic counts on the bypassed Main Street, downtown Lake Zurich did not look promising to risk averse businesses who sought only to survive the downturn.
The Benchmark's "What's Happening With...?" series reviews the history, ownership, current conditions, and development activity of various properties within the Village which are often asked about.
The next edition of "What's Happening With...?" will cover the period from 2011 to the present, including how the Village dealt with its heavy debt load and the first new downtown development in 13 years.
To learn more about redevelopment opportunities in Lake Zurich, please visit lakezurich.org or contact Assistant Village Manager Roy Witherow (
[email protected] or 847-540-1578).
