The Park Place shopping center in Palatine will receive a multi-million dollar makeover.
The Palatine Village Council this week authorized Mayor Jim Schwantz to sign a redevelopment agreement for facade improvements and other upgrades to the mall, 1365 N. Rand Road.
The deal could include up to $2.5 million in aid to villages in the Rand Road Corridor TIF district.
Center owners, left with large vacancies following the departures of Whole Foods and TJ Maxx, are proposing a $20-25 million project that includes major exterior renovations, interior modifications and potential outlet development .
The improvements are to be completed by October 31, 2025, as part of the development proposal.
Village manager Reid Ottesen said the village has been working with the landlord to find new tenants. Recent additions include a Goodwill store, as well as a U-Haul facility in the former TJ Maxx space.
However, the center, which faces Walmart across a parking lot littered with discarded pop bottles, has a gaping hole of empty storefront, including the former Whole Foods space.
“The center owner is now looking to make a significant investment in the rest of the centre,” Ottesen told the village council on Monday evening.
Alterations include raising roofs to make the spaces more in line with the tastes of today’s tenants, he said.
Visually, the center will take on a look more in keeping with the Goodwill theme, said Savas Er, owner manager, North American Real Estate Venture LLC.
Ottesen said any assistance to the village will be tied to homeowners generating sales tax dollars.
“So they would make the investment and as long as they were renting it out to tenants that generate sales tax, we would give them additional payments,” he said.
The final payment of $300,000 is dependent on the establishment of a subdivision, a “grassroots” development.