Banks Appear Unwelcome On Hinsdale's Ogden

HINSDALE, IL — For the last few months, Hinsdale officials operated under the belief that a bank was a permitted use for businesses on Ogden Avenue.

They were wrong.

Earlier this year, Chicago-based Lakeside Bank approached the village with its plan to demolish the old, vacant medical office building at 222 E. Ogden Avenue and replace it with a two-story brick building.

Last month, the village's Plan Commission voted unanimously for Lakeside's proposal. Its documents stated that a bank was a permitted use, but a special permit was needed for a drive-thru.

Years ago, the village prohibited banks on the first floors of buildings on Ogden Avenue and downtown, though allowed existing banks to continue.

The reason behind the ban was the village's desire for businesses that generate sales taxes — an important income source for the village that helps defray property taxes.

About a dozen years ago, the state Supreme Court found the village could zone its businesses based on sales tax generation, calling it a "rational" purpose of government, officials said.

For some reason, though, the village code allows other businesses that do not assess sales taxes, including stockbrokers, real estate and insurance agencies, and hair salons.

At Tuesday's Village Board meeting, Village President Tom Cauley and trustees expressed reservations about Lakeside Bank's proposal. They noted the earlier mistaken advice to Lakeside, saying the village still needed businesses with sales taxes.

Trustees also said they should consider prohibiting other non-sales tax-generating professional from setting up shop on Ogden.

Along with trustees, Cauley wondered how successful a bank would be in today's environment. He said he was usually reluctant to weigh in on business decisions because company owners know more about business than he does.

"But to me, building a big bank doesn't seem to make sense in the modern world, where most people do online banking," Cauley said. "I don't see a community need for this. It's not like people are champing at the bit to have more banks. We certainly have several drive-thru banks in town. Community need is one of the factors you look at."

Ogden should be used for sale tax-generating businesses, Cauley said.

"We're not Melrose Park, where we have lots of businesses," he said. "I think we have to think long and hard before we put more businesses in that area that aren't garnering any sales tax revenue."

Trustee Scott Banke agreed.

"We have an obligation for revenue generation," Banke said. "We're coming off the heels of COVID. It's a short-term situation, but it's going to present challenges. We're not helping if we endorse a business like this."

In response, attorney Peter Coules, who represents Lakeside, said the property has been on the market for a long time. And retailers are uninterested in the property because it's cramped, he said

"With the (Illinois Department of Transportation), you have to be careful how intensive of a use there is," Coules said.

He added that a nonprofit owns the building, which means no property tax is assessed. With a bank on the land, the village would gain such taxes, he said.

If Hinsdale rejects the proposal, Coules said, "I think you'll possibly be looking at two years from now, you'll still have a vacant property there."

"Those are fair points, Peter," Trustee Luke Stifflear said. "But I'm not sure, from my standpoint, if it moves the needle."

Officials acknowledged it could be months before a final decision is made.