A failed deal to bring a Taco Bell and Wendy’s to a village-owned property in Arlington Heights recently prompted officials to approve a different agreement with a new developer.
The new deal comes after negotiations stalled with a firm selected by officials in March 2017 to redevelop the 1.4-acre site at the northeast corner of Golf Road and Arlington Heights Road, said Village Manager Randall Recklaus.
During a village board meeting May 7, board members voted unanimously to move ahead with a second proposal from Strategic Real Estate Services and Paragon Real Estate to acquire the property for $1.2 million and build a roughly 9,800-square-foot space for retail and dining.
The new developers also have not yet identified potential tenants for the development. Village officials said they anticipate it could take up to six months for the developer to find suitors for the new commercial space.
But the developers’ offer to buy the site is $200,000 more than the previous proposal from Taco Bell franchise owners John and Nicholas Kallergis, who were planning to team up with Wendy’s franchise owner Michael Hamra on the proposal that was approved last year, officials said.
Randy Tieman, president of Tieman Development Interests, which is working with the new developers on the project, said that while “times have changed” in the retail market, which is grappling with a surge in online shopping, he remains “extra excited about the site.”
“We’ll need some time, but we’re going to hit it hard,” Tieman said.
Trustee John Scaletta said he is in support of the agreement with the new developer, but cautioned Tieman that village officials are not looking for “another mattress store or mobile store on that corner.”
“We appreciate you guys stepping forward, but we want to make sure from the get-go that we’re on the same page,” Scaletta said.
Trustee Mike Sidor urged the developer to also be committed to the beautification of the surrounding area adjacent to the site, which he described as being near “the gateway to the village.”
“We’d like you to make it as welcoming as possible,” Sidor said.
Tieman, who said he plans to attend the International Council of Shopping Centers convention in Las Vegas later this month, said the event will offer them the chance to spread the word out about the new development to national retailers.
“(Arlington Heights) is a great community, and this project will be nothing less than top-notch,” Tieman said.
kcullotta@tribpub.com
Twitter @kcullotta
