Rock Climbing Proposal Recommended For Former Recycling Center

EVANSTON, IL — A proposal to sell Evanston's former recycling center for use as a rock climbing gym won the recommendation of the city's Economic Development Committee Wednesday. The committee evaluated two pitches resulting from a request for proposals issued by the city in July after a lease with a brewery fell through. Members voted 6-1, with one abstention, to recommend the rock climbing plan over a proposal from the owners of the Peckish Pig restaurant on Howard Street to lease the property from the city for a large event space with an eventual food hall.

Ald. Ann Rainey, who represents the 8th Ward where the city-owned property at 2222 Oakton St. is located, was the lone vote against the recommendation. She expressed concern about various elements of the project and risks incurred by selling the property. Committee member Hecky Powell, the owner of Hecky's Barbecue, recused himself from the vote.

"This building needs to be leased. It should not be sold," Rainey said. "It should especially not be sold to a known very, very active developer." She read from Clark Street Real Estate's website, which says the firm has managed 30 million square feet and 50,000 acres of land.

"And now they want to acquire our land," Rainey said, suggesting the firm would further pursue purchases of properties owned by the cities. A memo from city staff noted the $1 million estimated sale price would be equivalent to about 6 years of rent projected by the other response to the RFP.

“They’re into acquiring land and that is why they’re so special. They are very special. There is no way that Peckish [Pig] or Palm[house Productions] events can compete with that.” The alderman said the city may indeed need a rock climbing facility, but there was "nothing about Evanston" in the proposal. Before the recommendation was given final approval, Rainey added a direction to obtain a fresh appraisal.

“These are people that are so big and so wealthy and have such wonderful deep pockets that I am so impressed that they can’t be competed with. But there is a project here. There is a user here that I don’t think their user can compete with the event space," Rainey said. "And Clark Street Real Estate is going to rent to rock climbing wall people and they have no connection to our community.”

Clark Street Real Estate and First Ascent Climbing & Fitness, the backers of the rock climbing proposal, pursued the 2015 RFP for the site. At the time, Rainey described the venture as "the guy who built the Walmart who wanted to build a so-called climbing wall." With her backing, a proposal by Smylie Brothers Brewing Company for the site was approved instead, and the brewery's owners signed a lease in 2016. However, that project was never realized, and the company and city staff negotiated a deal to pay about $60,000 and cancel a lease worth $1.5 million over 10 years.

First Ascent currently has four Chicago facilities in Avondale, Humboldt Park, Uptown and the Loop. It plans to expand to Arlington Heights and Peoria by the end of 2019, according to city staff. Clark Street Real Estate, which will own the site and lease it to the climbing company, envisions the site as a regional anchor for North Side and North Shore communities.

The Palmhouse Productions team has established local relationships and successful experience on Howard Street that would be beneficial to growth. But its estimated project costs appeared underestimated and the group had not demonstrated the existences of a market to support a food hall concept at the location, according to the staff comparison of the proposals.

Ald. Melissa Wynne lamented that the rock climbing business hadn't shown up in town a decade ago, when her 14-year-old son "who climbed everything." She said it was time for the city to end its role as a landlord for the property.

"This is the kind of recreation we've all been talking about – except it's not bowling," Wynne said.

"We're not going to sign an agreement unless First Ascent is in on the deal," Wynne said. "We're not signing an agreement to sell you – no offense – but not to a straight developer this site, we're signing up for a package."

"The use," said Ald. Braithwaite. "The use."

Committee member Mary Beth Burns, who also chairs the Zoning Board of Appeals, said the food hall was a great idea and would probably make more sense somewhere else in town. The site is in an I-2 industrial zone, and either proposal would require a special use permit.

"What we have found to be a more compatible use in the I district is a sports recreation facility," Burns said. "The climbing gym is a more compatible zoning use for that district. I also happen to think that it's a better use for a unique building. I don't know where you guys can find a 60-foot-tall building or a 45-foot-tall building in many places in Evanston where you can set up a rock climbing wall."

If it was true the rock climbing facility could attract several hundred patrons on a daily basis, it would be a give a major boost to the Oakton Street area, Burns said. She said it was frustrating the site had stayed empty for so long but felt a suitable new owner had come forward.

"For me, your capitalization, your realistic budget, your experience working through the project and having that funding is a really key component that makes it compelling for me as well," she told representatives of Clark Street and First Ascent.

Ald. Robin Rue Simmons also backed a plan to sell to Clark Street and grant a rock climbing special use permit. She pointed to concerns of insufficient spaces for more family and youth recreational activities and the climbing concepts own unique event space.

"I like the idea," Rus Simmons said. "I think that it is a destination. It would bring folks from beyond Evanston and I support that."

Membership in the club would cost between $39 and $79 a month, First Ascent co-founder and business director Jon Shepard told the committee. He said the company would be open to considering sliding scale rates for income qualifying residents.

The fill City Council will have final say on what to do with the vacant property. Four alderman on the committee supported the project, so a vote from just one of the other four members of the council would be sufficient for passage. Development staff told anticipated a lease would be ready for the City Council's consideration at its Nov. 12 meeting, according to a memo to the committee.

Related:

• Evanston Lets Brewery Out Of $1.5 Million Lease For $60,000
• Aldermen Want Compensation From Smylie Brothers Brewing
• Brewery Wants Out Of Recycling Center Lease Before Rent Comes Due
• Smylie Bros. Looks To Expand To Old Recycling Center