Sec. 4.14.1. Introduction/purpose. Because the village does not impose a village real estate tax on properties located in the village, the village is forced to rely almost exclusively on retail sales generated from the village to fund its municipal services. The major source of retail sales (approximately 85 percent) in the village is located within the core retail area of the village as set forth on the village's zoning district map.

The purpose of this section is to regulate the conversion or elimination of existing retail sales establishments within its core retail area. In doing this, the village will preserve and enhance its largest source of operating revenue, being sales tax, while also working with the property owners to maintain a viable tenant mix on various properties within the core retail area.

Sec. 4.14.2. Definitions.

1.

Retail sales establishment (RSE)—A retail establishment engaged in selling goods or merchandise to the general public, other retailers, contractors, or businesses, where such sales constitute the primary function of the business, all of which result in the payment of state and local sales taxes as defined by ILCS/35/120. The retail sales establishment may also include the rendering of services incidental to the sale of such goods.

2.

Core retail area overlay district (CRA)—The CRA is defined as the commercially zoned properties generally located along Milwaukee Avenue (Route 21) and Townline Road (Route 60) and specifically defined as the core retail area on the village zoning district map where a variety of land uses are permitted including retail sales establishments and service oriented uses including legal or financial institutions, various offices or similar uses.

3.

Commercial areas—The CRA is divided into ten commercial areas which contain individual RSE and non-RSE properties or building(s) as defined in the Initial Findings Report prepared by Rolf C. Campbell & Associates, Inc., dated April 30, 2010.

4.

Certificate of building and use conversion (CBUC)—The CBUC is issued by the village upon approval by the village board and is required when changes are proposed to floor areas sizes of certain RSE which may result in the reduction of retail sales tax generating floor spaces and the potential loss of sales tax revenue to the village.

Sec. 4.14.3. Applicability. This section shall apply to all properties located within the CRA district as designated on the village's zoning map.

Within the CRA district, the conditions upon which a certificate of building and use conversion must be obtained from the village are as follows:

1.

Single Use Building When any property within the CRA district, being a single use building which exceeds 20,000 sq ft of gross floor area, whether occupied or vacant and which is or was defined as a retail sales establishment (RSE) and the owner or tenant proposes the reduction in or conversion of the existing floor area of the RSE below 80 percent of the gross floor area to a non-RSE.

2.

Multiple Units under Common Control. In a shopping center, whether in a single multi-tenant building or multiple buildings held in common ownership, any conversion proposed that would reduce the RSE floor area below 80 percent of the total floor area.

3.

Hawthorn Mall. In areas of the mall held in common ownership, any conversion that would reduce the RSE floor area below 65 percent of the total floor area.

For the purpose of this section, the replacement of one non-RSE for another of the exact same size or less or with an RSE shall not require the issuance of a certificate of building and use conversion. However, the requirements of section 4.12 Building site review shall still apply.

With the exception of Hawthorn Mall, all gross floor area or leasable spaces calculations shall be based on the ground floor dimensions.

Sec. 4.14.4. Requirements.

A.

For all applicable properties as set forth in section 4.14.3, the owners must maintain a minimum of 80 percent of building floor area per building for RSEs (65 percent for floor area at Hawthorn Mall held in common ownership).

B.

A certificate of building and use conversion shall not be required for any conversion of space where the gross floor area will meet or exceed the restrictions set forth in item A., above.

C.

For properties with multiple buildings located within a unified retail center under single ownership, the maximum amount of non-RSE for a unified retail center may be shifted into one building which may cause that building to exceed the maximum percentage of non-RSE per building. This provision is subject to issuance of a certificate of building and use conversion per 4.14.3(1).

D.

A new certificate of building and use conversion shall be required for any building or property where a certificate of building and use conversion has been previously granted, in order to further increase the percentage of non-RSE floor area.

E.

For the purpose of calculating non-RSE for a building, vacant units shall be considered part of the RSE floor area.

F.

New construction or additions intended for immediate use by a non-RSE shall be considered additional non-RSE floor area, and require a conversion certificate if the resulting non-RSE square footage will exceed 20 percent of the total floor area (or 35 percent for Hawthorn Mall).

Sec. 4.14.5. Review Process. Prior to building site review as required by section 4.12 of the zoning ordinance and/or issuance of a building permit and/or issuance of a certificate of occupancy, whichever is the first to occur, a property owner and petitioner shall appear before the board of trustee's committee of the whole for review of a certificate of building and use conversion. For non-RSEs requiring Special Use approval, the conversion certificate request shall be considered by the Committee of the Whole prior to the public hearing for the special use. The review procedure shall be as follows:

A.

An application for certificate of building and use conversion, required fee per chapter 25 and the following information shall be submitted to the village clerk 30 days prior to the scheduled meeting:

1.

Detailed description of the project.

2.

List of the proposed uses for the building including specific business names, if possible.

3.

Proposed site plan locating the building on the property and existing and proposed floor plan(s) of the building. Please note that these plans along with the landscaping plans and building elevations will be reviewed at a separate meeting by the planning and zoning commission pursuant to section 4.12.

4.

A written statement addressing each of the standards for the granting of a conversion certificate listed in Section B1 below, including information such as:

a.

Detailed explanation discussing to what extent the proposed use and development at the particular location requested is necessary or desirable to provide a service or facility that is permitted outside the CRA district.

b.

How this conversion is in the best interest of the village and will contribute to the financial vitality of the village or general welfare of the community.

c.

Discussion of how the proposed use is complementary to other uses in the immediate area, and consistent with the general character of the CRA.

d.

Comparison of estimated sales tax revenue of the unit occupied by a retail use vs. projected revenues (direct or indirect) should the conversion be granted

7.

Detailed economic impact to the village from said conversion including what the annual loss of sales tax will be.

B.

The Committee of the Whole, following consideration of the application at a public meeting, shall take one of the following actions:

1.

Recommend approval of the certificate of building and use conversion, by ordinance duly adopted by the Board of Trustees, with or without modifications or conditions, based on the following standards:

a.

The proposed building conversion will not have a detrimental impact on the fiscal health of the Village.

b.

The proposed building conversion will strengthen the economic viability of the adjacent properties and village; or

c.

Without the proposed building conversion, the property cannot yield a reasonable rate of return;

d.

The proposed building conversion of RSE floor area is the minimum needed to accomplish the goals of the property owner and/or developer.

e.

The proposed building conversion, if granted, will result in a mix of uses consistent with the intended character of the area.

2.

Recommend denial of the application for certificate of building and use conversion for failure to demonstrate that the standards have been met.

3.

Table the discussion with specific guidance to the applicant to submit supplemental materials necessary for the consideration of the Certificate.

C.

The Village Board shall take action on the recommendation within 30 days of the Committee of the Whole discussion or Planning and Zoning Commission public hearing, whichever is later.

Sec. 4.14.6. Limitations. A certificate of building and use conversion shall expire within one year unless a building permit is issued and construction has actually begun within that period and is thereafter diligently pursued to completion or unless a certificate of occupancy is issued and a use commenced within that period.

Sec. 4.14.7. Departures. The village may administratively grant the following departures from this section:

1.

The addition of 1,000 or less square feet to any approved non-RSE provided that the addition does not decrease the percentage of RSE building floor area by one full percent.

2.

The reduction of the floor area of any RSE that does not decrease the percentage of RSE building floor area by one full percent.

For departures that exceed the limits of this section, issuance of a certificate of building and use conversion shall be required pursuant to the review process in section 4.14.5.

(Ord. No. 2010-064, § I(Exh. A), 12-7-10; Ord. No. 2024-132, § II, 11-4-24)