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Yielding to requests of nearby homeowners, Lombard trustees have rejected a proposal to allow an industrial building to be built on the St. Charles Road site that once housed Kohler’s Trading Post.

The parcel, at 638 E. St. Charles Rd., has been vacant since a fire destroyed the local landmark last year. The proposal had called for rezoning the 3.8-acre site and changing its designated use from community commercial to light industrial.

The designation would have enabled construction of a 70,000-square-foot facility that would have been used by nearby Seamless Gutter for manufacturing and by neighboring Ace Coatings for warehousing. A third portion of the building would have been leased to another tenant for manufacturing or warehousing.

Homeowners, however, urged the Village Board not to change the zoning, saying an industrial building would alter their neighborhood’s character, cause traffic and result in a domino effect along the corridor. They also complained of unkempt businesses and unsightly conditions near the site.

Lombard officials have long been searching for ways to breathe life into St. Charles Road, a main east-west gateway into the community.

Last year, the Village Board amended its comprehensive land-use plan for that portion of the corridor, designating the property for community commercial uses. Before the change, the plan called for light industrial uses for properties in the area.

The change became part of a plan to revive the corridor and help strengthen its commercial base. The village already has pumped millions of dollars into road improvements and landscaping along St. Charles Road. It also is studying the feasibility of establishing a tax increment financing district in the area. The special taxing district could raise funds to help merchants spruce up their properties.

Trustee Kenneth Florey said the board was taking a step backward by changing the zoning at the site.

“The board should have a greater vision of what the St. Charles corridor can be,” Florey said. “We must not act rashly with the St. Charles corridor; it’s too important a location.”

Trustees last month said they liked the proposed $3.5 million industrial project and gave their initial approval. However, the tentative green light came with the condition that an agreement be drafted to lock in the site development plans.

Village staff members had warned that, if the zoning were changed and the proposed project were to fall through, it would open the door to a wide array of industrial uses there.

But trustees accepted the Plan Commission’s recommendation to deny the request. Several trustees said they were convinced by residents’ arguments.

“A lot of people have waited a long, long time for the St. Charles corridor to be improved,” said Trustee David Schaffer. “The bottom line is they do not want a factory there. They want to take a stab at commercial.”