Construction On Tallest Building Downtown Slowed Over IDOT Permit

SKOKIE, IL — Delays in receiving permits from state regulators have postponed the start of vertical construction of the 8000 North project. The planned 12-story mixed-use residential development at the corner of Oakton Street and Lincoln Avenue will be downtown Skokie's tallest building when completed. The project's developers are hopeful they can begin building upwards before the the end of next month.

Illinois Environmental Protection Agency officials signed off on the site's safety earlier this year, but construction cannot proceed until the Illinois Department of Transportation issues a permit, according to the developer. IDOT, the state agency in charge of Lincoln Avenue, had raised concerns about the awnings on the east side of the structure encroaching on the right-of-way of the street it oversees and other issues, records show.

"As we work through the final steps here to get this done, what we're trying to do is complete all the permitting that's required and all the things that are required to get our construction loan," said John Dragic, principal of Winnetka-based Greenspire Capital.

Located between the Oakton CTA Yellow Line station and the Edens Expressway, the 153-unit apartment building will feature about 11,000 square feet of retail space. There will be another 3,000 square feet on the ground floor of a separate garage structure, which will remain owned by the village and leased to the developers for at least 10 years until they are obligated to purchase it at the end of 12 years.

According to the terms of the development agreement, 73 parking spaces in the garage will permanently remain public. Shakou restaurant, a suburban chain of trendy Asian restaurants that began in Libertyville, has been named as the tenant for the corner commercial space. So far, no other commercial tenants have been publicly announced.

"We put up the tower crane, we were anticipating things going a little quicker — we had to get the tower crane because they disappear on you if you don't get them. So it was a lot of things that are going but it's a process and there's just things we've got to do," said Dragic, who is heading up the development's financing. "We're working really well with the village, with our contractor, with all our engineering consultants to get all this done and going."

A development agreement was approved in February 2018 and groundbreaking at the site began last May. Construction had initially been expected to be completed to cost more than $64 million and be complete in December 2019. Earlier this year, the development team, which also includes Pontarelli & Company and Hoffman Homes, said it anticipated the property would be complete June 2020.

The building is now no longer expected to be finished before late 2020, according to Dragic.

In addition to IDOT approval, construction is pending a building permit issued by the village, which Dragic described as "basically done."

Once the permits are complete, the developer plans to close the $1.5 million deal and take ownership of the city-owned pieces of land, which will be assembled into new parcels — with the apartment building given the new address of 8000 North Lincoln Ave.

Rents for apartments in the building are expected to start at $1,400 for a studio, with three-bedrooms beginning at $4,000, according to Dragic.

The 8000 North developer, selected in 2017 after village trustees reviewed seven proposals for the site, can receive almost $6 million in public money from tax increment financing to pay for costs associated with construction. The village is also financing the project with more than $10 million in general obligation bonds.

The parts of the soil underneath the now-demolished Desiree restaurant and Skokie Cleaners building — purchased by the village in 2013 for $1.175 million — had been contaminated with perchloroethylene, a byproduct of dry cleaning.

In a June 21 "no further remediation" letter, recorded onto the parcels the following month, state environmental regulators declared that the 1.02-acre site approved for residential and commercial use subject to certain conditions involving preventative, engineering and institutional controls.

The full details of the state transportation agency's concerns with the development's impact on Lincoln Avenue were not available Wednesday, and IDOT spokespeople did not immediately respond to a request for more information about the status of the permitting application.

Records show village officials and engineers for the developer sought to respond in June to IDOT concerns over an awning that encroached into the Lincoln Avenue right-of-way by less six inches and awnings over Oakton Avenue, which the village manages, that encroach over areas previously dedicated for roadway purposes by more than two and half feet. Dragic said there are other issues besides awnings, and the development team are hopeful the permit with IDOT will be cleared shortly.

The 8000 North development was designed by architect Lucian Lagrange, who declined to comment about the Skokie project or his work on another North Shore planned development, One Winnetka, whose development agreement was repealed by the Winnetka Village Council last month.

Earlier:

• Tallest Building In Downtown Skokie Breaks Ground
• Skokie's Plans For 'Luxury Rental Community' Downtown Take Shape
• Commission Approves Plans For 12-Story Luxury Apartment