Neighboring Condo Owners Delay Hearing On Evanston Office Tower

EVANSTON, IL — The Plan Commission postponed issuing a recommendation Wednesday on plans for a office building at the request of neighbors to the site. The City Council agreed in September 2017 to sell the parking lot between the Evanston Public Library for $4 million to build an office building after its proposed size was reduced from 16 stories to 11 stories. Plans for the structure have since grown to 13 stories, including four levels of parking and nine stories of office space.

Commonly known as the library parking lot, the site is surrounded by a nine story apartment building and a seven story residential building owned by Northwestern University. There are also several historic sites in the area, including the three-story Woman's Club, 1702 Chicago Ave., built in 1912 and listed on the National Register of Historic Places. The immediate north was designated a local historic district in 2010 and includes 1724 Chicago Ave., an 1865 Greek Revival, Frances Willard's house at 1728 Chicago Ave., also listed as a national historic landmark, the Administration Building built in 1910 and 1732 Chicago Ave., according to a memo from city staff.

The plan for 130,000 square feet of office space in downtown Evanston proposes adding room for more than 500 workers on a daily basis.

Developer Greg Stec said the city issued a request for proposals for the site because it recognized class A office space in Evanston was in high demand.

"There are many Fortune 100 firms looking to relocate to Evanston. A lot of the CEOs live in Winnetka and the North Shore area, and they would rather not drive to downtown," Stec said. "They would rather drive to Evanston." He said the new employees would be expected to spend significant amounts of money in the downtown area.

The vacancy rate of class A office space in Evanston had dropped to 4.8 percent from 7.2 percent two years ago, according to a May letter from a commercial real estate company. It said at least 18 companies are looking for more than 20,000 square feet of office space in the north suburbs, and there were only two available opportunities of that size as of the first quarter of 2018.

The commission allows neighbors of planned developments to request a single continuance of a hearing. Marcia Kuhr, representing owners of condos at Lakeview Terrace, the nine-story tower at 1738 Chicago Ave., requested time to survey those who live in its 44 units about issues related to the project, including "alley concerns, traffic issues, etc," according to a letter read by Plan Commission Chair Colby Lewis.

Commissioner Peter Isaac noted that the design was originally supposed to be 11 stories and has grown to 13 stories with the additional layer of parking and floor of office space.

"I know there was a negotiation where the price went down but if you're adding another floor is the price going to to go back up?" Isaac asked.

"Yes, if two years ago we got this approved, but now since construction has gone up and interest rates have gone up this project wouldn't have made it without another floor," said developer Greg Stec. He said the height was only increased by 21.4 feet and margins were thin on the project. The two investors in the development were identified as Jeff Brown, CEO and co-founder of T2 Capital Management, and Marc Garrison, principal and COO of R2 Companies.

The development team had tenants lined up, Stec said, but they lost 50 percent of the building because the approval process has taken close to two and a half years. However, he suggested brokers had recently indicated a single tenant may be prepared to occupy a quarter of the building leading to half of the building leased before closing on the property.

Commissioner Andrew Pigozzi asked architect Paul Janicki to explained the form of the building, including four towers and an infill of curtain wall.

"When we first looked at the building as a massing study, it's a cube," Janicki said. "We felt the only way to get an elegant thing that matches some of the aesthetics of what happened earlier in downtown Evanston with those really lovely buildings was a technique like that – to help break up the facades into four corners so that you basically slenderize the elevation."

Janicki said he met extensively with city staff and Ald. Judy Fiske, 1st Ward, with much of the discussion focused on the amount of parking.

The deal with the city calls on the developers to replace the lot's 74 parking spots and the plans include 112 spots, 21 of which would be reserved for the public at all times. However, the zoning code would require 213 parking spaces. The developers offered to lease 122 parking spaces in city garages for the first year to make up the difference before a re-evaluation of parking needs.

Owners of adjacent properties did not wish to have any commercial activities on the ground level of the building, according to the development application. Underground parking is not financially feasible at the site, the application said. Pumps would have to operate constantly at high volumes to keep the basement dry due to the high water table and site of the parcel, which would also jeopardize the architect's goal of a "green" development.

The Design and Project Review Committee, which consists of city staff, recommended denial of the proposed development at a Nov. 14 meeting, citing concerns about the scale of the development adjacent to landmark buildings, site development allowances, the lack of public benefits and a lack of room for vehicles to turn in the alley, according to a memo from Community Development Director Johanna Leonard, who chairs the committee.

It said the proposed building will "not cause a negative cumulative effect" in the area, but "the height, mass and scale of the proposed development may not be compatible with the adjacent landmarked institutional uses. As such the proposal may diminish the value of these institutions, but would likely not diminish the value of other properties in the downtown."

Staff also expressed concern about the use of the alley by vehicles using the parking garage and loading dock as well as pedestrians using the library. The memo noted the lack of active uses on the ground floor was concerning for the continuity of a walkable experience.

"While there are no significant historical or architectural resources on the site to preserve, the development may not have a positive impact on the adjacent significant historical resources," the staff memo said.

City staff recommended the project not receive approval unless the developers provide for a series of conditions, including a the installation of real-time parking detection systems to show how many spots are available, a $20,000 payment into the city's public art fund, bird-friendly measures, restrictions on rush hour deliveries, a lease agreement for 122 parking spaces within city-owned parking garages and a traffic study within a year of the building becoming operational.

Although the traffic study indicated the existing parking lot beneath the library and 21 public spots in the office building, Ben Schapiro said he had concerns about deliveries being able to access the library from the alley and said he did not believe traffic sample captured a representative sample of the use of the parking lot by patrons of the library, whose board he chairs.

Developers for the project have projected the building would bring in about $2 million in additional tax revenue and $1 million in building permit fees in addition to the $4 sale price of the property.

Commissioners are set to issue a recommendation on Jan. 9 on the plan. The building is expected to take 18 month to build if plans are approved by the City Council.

UPDATE: Alderman Reject Proposed Evanston Office Tower On Library Lot

Related:

• Architect Submits Plans For Office Tower On Evanston Library Lot
• $4 Million Evanston Library Parking Lot Sale Moves Ahead
• Development Proposals Divide Evanston Council