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Development vs. Demand (from Crain's Chicago Business)

(3 posts)
  • Started 5 years ago by ChrisHajer
  • Latest reply from Catherine
  1. ChrisHajer
    Member

    from: http://chicagobusiness.com/cgi-bin/mag/article.pl?article_id=27126&bt=morris&arc=n&searchType=all

    Development vs. demand
    Tiny Morris' growth lags exurban neighbors

    Developers of all stripes —” industrial, retail and residential —” are circling Morris, a small town on the far southwestern fringe of metropolitan Chicago. But some observers are worrying that new development is outpacing demand.

    Situated at state Route 47 and Interstate 80, Morris has a population of around 13,000 and is due west of such fast-growing towns as Joliet and Minooka.

    ProLogis Trust of Denver a year ago finished work on an 806,000-square-foot speculative warehouse, but no tenants have materialized. Ten miles away, in Minooka, ProLogis' Internationale Centre South park has attracted Clorox Co. and Kellogg Co.

    "We know we have to be a little patient with a building this size," says Douglas Kiersey, a ProLogis senior vice-president, in discussing the marketing efforts in Morris.

    On the residential front, Lincolnway Partners Inc. of New Lenox got approval several years ago for a 1,250-home subdivision called Grand Oaks on 541 acres. But ground hasn't been broken yet. Lincolnway owner William Bolker was unavailable for comment.

    Retailers, meanwhile, are jumping in. A new Menards opened on Route 47 in November, and its rival, Lowe's, has gotten approval for a store nearby in a shopping center owned by Oak Brook's Edgemark Commercial Real Estate Services LLC. Target Corp. is involved in negotiations to take a site next to Lowe's, real estate sources say. Target and Edgemark did not return calls.

    The Target deal is not finalized and a plan by Caton Commercial Real Estate Group Inc. of Plainfield for a shopping center across the street recently fell apart, leading some observers to suggest that Route 47 is not yet ready to become a major retail corridor. "The housing growth in Morris has lagged the growth in other towns in the area," says Michael Bell, president of retail brokerage Pentad Realty Inc. in Chicago. "As a result, the demand for retail isn't as strong as the people in Morris think it is."

    That may be just fine with Mayor Richard Kopczick. "We don't want to explode with the sort of growth that has overrun other communities," he says. "We're not interested in doubling our population in the next five years just to bring more retailers to town."

    Still, the city has spent $15 million on sewer plant additions to accommodate future growth. A north-south highway called the Prairie Parkway is still in the planning stage, but if it gets the green light from state and federal officials, it's likely to run along the western edge of Morris.

    "If the parkway gets built, then we'll see more opportunities for all kinds of development," says Nancy Ammer, CEO of the Grundy Economic Development Council.

    ©2007 by Crain Communications Inc.

    Posted Wednesday Jan 24, 2007 19:06 #
  2. ChrisHajer
    Member

    There is a TIF in Morris which is set to expire in 2009.

    I found this on their city website http://mornet.org in this document http://dist54.mornet.org/Binder1.pdf (SCHOOL DISTRICT BUDGET FORM July 1, 2006 - June 30, 2007)

    - Equal Assessed Valuation and Tax Rates:

    The EAV for our district rose 7% last year which gave the district additional funds. We are working with the Grundy County Economic Development to bring additional industry into our district to increase EAV. The Superintendent is also meeting with the city to attempt to receive more of the TIF funds. The TIF expires in 2009 so additional revenue will be realized in 2011. I estimated EAV growth at 3.5% for the next several years. The Board of Education may ask for a increase in the Education Fund in the spring of 2008 to eliminate the need for Working Cash Bond sales. There have been ten referendums on the ballot for an increase in the Education Fund from 1988 through 2005
    and one request for an increase in the O&M fund; all were defeated

    Posted Wednesday Jan 24, 2007 19:09 #
  3. Catherine
    Member

    Key words : "No tenants have materialized." Gee, could that happen here? Some might think big new ugly empty stores are better than old small ugly empty ones. We're meant to take that chance apparently, or be considered retrograde Olmsteders.

    Posted Thursday Jan 25, 2007 20:39 #

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