The Arlington Heights Village Board granted developers of the planned Arlington 425 project in downtown Arlington Heights another construction-related extension – making this at least the second one – even as financing for the work has still not been secured.
The mixed-use development, planned for 225 W. Campbell St., has been in the works for five years.
“We’re looking to get it going,” Stephen Messutta, general counsel for Norwood Builders of Park Ridge, told the board at the April 15 meeting.
The developer requested a zoning extension for the proposed redevelopment on the longtime empty land parcel located just steps from the village’s downtown entertainment district. After a discussion, trustees approved a six-month extension – from May 3 to Nov. 3 – on a 7-0 vote. Trustees Jim Bertucci and Rich Baldino were absent.
Messutta said Norwood Builders faced a May 3 “doomsday clock” to submit all the necessary documentation to obtain permits for Phase 1 of the project. He told the board it took more than a month to assemble the necessary paperwork and it was a struggle to upload the large files to the village’s new online portal.
“We are seeking approval for the final plat of subdivision for Phase 1,” Messutta said, “which we believe, still today, will be a great project and cap off the downtown.”
The $150 million mixed-use, three-building development was first approved by the Village Bard in May 2019. The first phase of the project includes construction of a 10-story apartment building facing Campbell Street with commercial space on the first floor.
The second phase of the project would have a five-story parking garage built for Campbell Street residents that will back up to the existing Vail Avenue garage. A five-story apartment building facing single-family homes on Chestnut Avenue is expected to be part of the third phase of the project.
On May 3, 2021, the board granted an amendment to the Arlington 425 Planned Unit Development which was valid for 24 months, according to village staff memos. On April 17, 2023, Norwood Builders requested a one-year extension of both the PUD and preliminary plat of subdivision, as well as a one-year extension to the deadline for submission of the building permit for what would be the Chestnut Building.
Both approvals, from 2021 and last year, were set to expire on May 3.
Last month, the Plan Commission voted to recommend that the Village Board approve a six-month extension to the PUD and the resubdivision expiration dates.
Additionally, Charles Witherington-Perkins, village director of planning and community development, said last November that modifications were made to what would be the Campbell Street building, with different architects contributing to the design. That was in addition to changes in the architecture of the garage.
On Feb. 20, a final plat of subdivision was submitted, Perkins said, and Norwood Builders is in the second round of revisions. He said it takes several weeks to revise the plans.
“We didn’t feel that could get done before May 3,” Perkins said, adding the process is complex and a six-month extension would be appropriate.
“I think this makes sense,” Mayor Tom Hayes said. “I’m very happy progress has been made. The board asked you to make some progress and you have done that.
“I appreciate your demonstrated commitment to get a shovel in the ground in Arlington 425,” Hayes told the developer.
However, not everyone on the board expressed satisfaction with the progress.
“We’ve been talking about this project for so long,” said Trustee Tom Schwingbeck. “You went back and made several modifications – you made changes to the parking garage, changes to the buildings. It seemed like there was a lot of time spent during that year trying to make modifications for some reason – I’m assuming for financing – when things could have been pushed through and we could have been building something.”
Norwood Builders President Bruce Adreani was called to the podium to respond.
“I remember being here last year and quite frankly, I was on a mission to get this done,” Adreani said. “We felt there were certain areas that we could compliment the buildings, the look, the structure itself.”
He said his team refined structural changes, resubmitted the plans to the Plan Commission then reconfigured everything to the commission’s liking.
“With those things in the making is why it took a little bit longer,” Adreani said. “Sometimes in life, if it’s worthwhile, it takes a while.”
Schwingbeck commented that “this has taken a while” and asked if financing had been secured to which Adreani responded, “not at this point.”
“We have several different potential financing organizations working on it,” Messutta said. “Ultimately, as developers, we are hoping that pricing will get better for us. We’re hoping we can look at final pricing once we get the permits approved.”
Adreani, who has owned the property since the early 1990s, declined after the meeting to comment further to Pioneer Press on why he hasn’t secured financing when so many other large-scale apartment developments are moving forward in both Arlington Heights, Buffalo Grove and surrounding communities.
Elizabeth Owens-Schiele is a freelancer.
