Chicago Suburb Schaumburg Makes big Mixed-Use Plans

Schaumburg is betting big on a property shuffle that could redefine one of its busiest intersections.

The village is moving forward with a proposal to use $10.5 million in TIF district funds to relocate the Cook County highway maintenance facility and clear the way for redevelopment at Algonquin and Meacham roads, the Daily Herald reported.

A critical step in the plan was Schaumburg’s recent $6 million purchase of the Hunter Foundry Machinery Corporation property at 2222 Hammond Drive. The site is slated to become home to the county’s operations, enabling the relocation of the maintenance facility that occupies the redevelopment site.

The $10.5 million in TIF funds would be used to cover the costs of land acquisition, demolition and construction.

Redevelopment plans include a mix of hotels, retail and restaurants, which could generate up to $14 million in additional property tax revenue for the TIF district by 2038, along with $1 million annually in consumer taxes. Village officials view the project as an opportunity to transform a key intersection into a vibrant economic hub.

Hunter Foundry’s 18-month lease on the Hammond Drive property will delay demolition until late next year. The village is not expected to take ownership of the site until September 2028, leaving several years before redevelopment can begin.

The initiative comes at a time when Schaumburg’s office market faces significant challenges. The vacancy rate for Chicago’s suburban office properties rose to 31.4 percent in the third quarter, an increase from 29.7 percent the previous year and 22.1 percent at the start of the pandemic.

Recent leasing deals include Mizkan Group’s 50,000 square feet at the Sperry Equities’ Woodfield Corporate Center, and ADP’s sublease of 150,000 square feet from Zurich North America at 1299 Zurich Way.