Executive Summary

Development Pipeline

Industrial Projects

> Additional projects are included in the Appendix below.

Entitlement Risk

Approval Patterns

• High Consistency for Special Uses: Industrial special use permits, including those for cannabis cultivation and educational logistics, typically receive unanimous approval when meeting technical criteria .
• Condition-Heavy Site Plans: Approvals frequently include requirements for screening mechanical equipment and installing sidewalks to connect disconnected industrial parcels .
• Proactive Security Integration: For specialized uses like cannabis, the Police Department expects direct access to camera systems and site tours prior to operation .

Denial Patterns

• Incentive Hardline: The Board has established a clear pattern of denying economic incentives for industrial users, viewing them as high-risk/low-return for the Village's property tax share .
• Unqualified Uses: Requests for incentives to cover "unforeseen" infrastructure costs (e.g., water main loops) are rejected if the use is primarily industrial or includes video gaming .

Zoning Risk

• Water Usage Regulatory Tightening: The Village updated its code to redefine "large water users," increasing scrutiny and requiring impact studies for any business using over 15,000 gallons per day .
• Dispensary Buffer Adjustments: Zoning text was amended to "grandfather" existing dispensary locations, protecting them from being rendered non-conforming if a daycare moves into their 1,000-foot buffer zone .

Political Risk

• Sales Tax Prioritization: There is a strong political preference for retail or "fast-casual" dining over industrial growth because industrial projects yield minimal direct tax revenue ($5k-$10k annually) compared to the needs of the pension fund .
• Anti-Incentive Sentiment: Trustees have expressed frustration with developers bringing incentive requests that contradict established policy, signaling a likely tightening of the Economic Development Incentive Policy .

Community Risk

• Residential-Industrial Friction: Community opposition is highest when industrial or high-density projects border existing neighborhoods, often resulting in demands for larger lot buffers or traffic mitigation .
• Traffic Sensitivity: Residents frequently cite existing congestion at key intersections (e.g., Deer Path and Tanner) as grounds to delay or restrict new development .

Procedural Risk

• Bidding Waivers: The Village frequently waives the formal bidding process for specialized infrastructure or emergency repairs to meet state project deadlines .
• Extended Study Phases: Significant projects (like the Route 31 road diet) require lengthy Phase 1 and 2 engineering periods involving IDOT coordination before construction can be authorized .

Key Stakeholders

Council Voting Patterns

• Unified on Fiscal Prudence: The Council is consistently unanimous in approving water impact fees and infrastructure contracts .
• Ideological Split on Incentives: While most members oppose industrial incentives, a minority bloc occasionally requests alternative scenarios (e.g., 25% vs 50% rebates) to remain competitive .

Key Officials & Positions

• Steve (Village Administrator): Influential in vetting all incentive requests; manages high-level negotiations with major water users .
• Nathan (Village Planner): Central to PUD amendments and zoning text changes; focus on sidewalk connectivity and screening .
• Brian (Public Works Director): Key gatekeeper for water capacity and road program sequencing .

Active Developers & Consultants

• Engineering Enterprises (EEI): Primary consultant for the Village's water master plan and lead service line programs .
• WBK Engineering: Handles feasibility and design for major arterial road improvements and "road diet" projects .
• Silverthorn Development: Frequent petitioner for residential subdivisions, often acting as a signal for the Board's tolerance for density .

Analysis & Strategic Insights

Industrial Momentum vs. Entitlement Friction

Industrial momentum is currently bifurcated. Site plan and land-use approvals are efficient, but the Village's new Water Connection Fee structure (shifting to usage-based "Population Equivalents") creates a significant financial entry barrier for food manufacturers or high-process users .

Probability of Approval

• Warehouse/Logistics: High, provided the site is in an I-2 district and the developer accepts 100% of infrastructure costs .
• Manufacturing: High, especially for food production, but subject to rigorous water impact agreements .
• Incentives: Near-zero probability for projects not generating sales tax .

Emerging Regulatory Trends

• Infrastructure Levies: The Board is accelerating water rate increases (24% hike proposed) to fund a $7.8M water tower and $30M in total needed system improvements .
• Code Streamlining: Recent updates to the adjudication ordinance allow the Village to fine repeat code violators more aggressively .

Strategic Recommendations

• Avoid Incentive Petitions: Do not request property tax rebates or sales tax incentives for purely industrial/warehouse uses; the Board views this as a "business risk" for the developer .
• Water Usage Disclosure: Engage Public Works early with precise daily gallonage projections. Underestimating usage (as seen with Aurora Packing) leads to costly retroactive impact fees and emergency shutdown clauses .
• Public Improvements: Voluntarily include sidewalks and enhanced landscaping in initial site plans to align with the Village’s focus on the "31 Corridor" beautification .

Near-Term Watch Items

• Route 31 Road Diet: Upcoming IDOT coordination and public meetings regarding the reduction of lanes will affect logistics access to the downtown core .
• Lead Service Mandates: The Village is currently developing a policy to cover 100% of private-side lead line replacements, which may influence future utility excavations .