Plan To Redevelop Ex-Saks Fifth Avenue Site Wins Preliminary Nod

HIGHLAND PARK, IL — A proposal to demolish the former Saks Fifth Avenue store and replace it with a five-story residential and commercial development got the go-ahead Monday from the Highland Park City Council. Council members unanimously approved a preliminary development plan for the Albion at Renaissance Place, an 89-unit apartment building with over 7,000 square feet of commercial space at 1849 Green Bay Road.

The project comes from a partnership between Albion Residential and the Jacobs Companies, the same team as another mixed-use development under construction across the street at 1850 Green Bay Road. The 161-unit Albion Highland Park was approved last year for the site of the former Karger Center and is slated to open in spring 2021.

Zoning for the 48,000-square-foot former Saks building is covered by a planned unit development that approved the neighboring Renaissance Place development in 1998, according to memos from staff. The building has been vacant since the store closed at the end of 2012.

In 2017, Dallas-based Tabani Group, owner of The Glen Town Center in Glenview, purchased the development from a German bank. In June 2019, as plans for the redevelopment of the Karger Center site neared approval, Albion Jacobs went under contract to buy the former Saks building.

On March 31, the city entered into a memorandum of understanding with the developers to sell the air rights over its 29-space parking lot at 1910 Second St. for $1 million.

Under the preliminary development plan, the developers would replace 23 of those spaces at surface level, but seven of the public spots will have to be below ground due to support columns.

Following two discussions in May, the Highland Park Plan and Design Commission voted 6-1 to approve the design plan on June 2.

The redevelopment plan granted preliminary approval by the City Council this week includes a pedestrian pathway with lighting, landscaping and art between the new building and the main Renaissance Place structure. It would connect to a planned pedestrian path that connects to Sunset Woods Park through the former Karger Center site, according to city staff.

Andrew Yule, vice president of development for Albion Residential, said residents of the new buildings will be also to use common spaces and amenities from both buildings, a first for the developer.

Albion Highland Park will offer more of a resort-like atmosphere with its views into the park and 12,000-square-foot terrace with pool, lawn and putting green.

Albion at Renaissance Place, on the other hand, aims to provide more of an urban feel with larger units and proximity to more businesses, he told Highland Park Patch in an email after the City Council unanimously granted preliminary approval.

"The vote of 7-0 really shows how a community and council can band together during these unprecedented times and support a truly great project in an irreplaceable location. It really shows such a strong support to us, the developer, and the belief that this current council wants Highland Park to succeed and thrive," Yule said, expressing hope the developments would increase economic activity downtown and in the central business district.

"The development team of Albion and Jacobs are thrilled to be part of the future of Highland Park and we hope we can encourage more businesses, restaurants and offices to invest in Highland Park as we are," Yule added. "It is truly a great community with deep rich roots and history and a council who cares about preserving that history and building for the future."

The two Albion projects together will combine to offer 27 inclusionary units for households with incomes between 45 percent and 100 percent of area median income, with the average affordable unit available to those with below 70 percent of the median.

Payments from the developer in lieu of affordable units will also provide $1.85 million for the affordable housing trust fund. The city's housing commission unanimously approved the developer's affordable housing plan earlier this month following two earlier meetings.

Michelle Holleman, the City Council member who serves as liaison to the commission, said there had been productive collaboration with the developers throughout the process.

"The fee-in-lieu is seen as a positive by the housing commission as we are looking at a lack of other revenue," Holleman said. "This is one of the only proposals that we have in terms of actually having a building project on site, and as we all know, we have many priorities, and being able to have that additional revenue at this point is considered very positive by the commission."

The proposed development at the former Saks store would include 10 on-site affordable units and a cash payment instead of the remaining 4.8 required under city ordinance.

Although the project's height, density and number of parking spaces meet the requirements of city code, there are a few elements of zoning relief required by the 1849 Green Bay Road project, according to city staff.

The developer asked to be exempted from requirements for a 25-foot setback along Green Bay Road and foundation plantings, as well as for permission for a more than 38-foot-tall internally illuminated metal sign and clock on the northwest corner of the building at Elm Place.

Ahead of Monday's vote at a meeting held over video-teleconferencing software, City Council members expressed mixed feelings about the sign and clock ahead of the vote.

Kim Stone worried it might not fit in with the area.

"While it looks nice in the renderings, I'm concerned that we don't have very many — I think we have one other internally illuminated sign in the business district," Stone said. "We have some of these down by the highway, but not in town and I'm not sure that's keeping in with the character of the area."

But Alyssa Knobel said she anticipated it would become a future downtown landmark.

"I actually think it's a really lovely addition. It gives a sense of place and purpose in our business district. I look forward to 10 years from now, people going, 'Let's meet by the clock,'" she said. "I love that it's slightly illuminated."

Knobel said she was thankful for the opportunity presented by the Albion redevelopment plan, which she said balanced the city's needs like increased downtown density and scattered-site affordable housing units.

"Quite frankly," she said, "I don't know when we're going to see another project like this, given our current environment."

Watch the full presentation and discussion from the June 22, 2020 special meeting of the Highland Park City Council:

Earlier:
2012: Saks Fifth Avenue To Close At End of December
2013: Medical Office Considered for Former Saks Space
2017: Renaissance Place Sale Leaves Bank With Over $20 Million Loss
2018: Plan Commission Recommends Albion Development Despite Complaints
2019: Albion Highland Park Set For Final City Council Approval