Village Board to Consider Economic Incentives for Westfield Hawthorn

Westfield Hawthorn is just a Village Board vote away from getting permission to begin its redevelopment. 

Approval of an economic incentive agreement is all that stands between Vernon Hills and the owner of the shopping mall. Under the proposed agreement, the village would pay about $17 million to Westfield over a decade-long agreement.

The money includes a $9.41 million sales tax rebate for Westfield-owned portions of the property, including the proposed AMC Theater. The money would help Westfield pay for construction-related costs such as remodeling the mall entrances, building the movie theater, relocating utilities and improving the parking lot. The rebate would not apply to the four anchor department stores.

Westfield also requests 7.5 percent interest on the unpaid rebate balance for up to 10 years, which would account for the remainder of the village’s payment. Village officials have said they want to negotiate those terms.

An agreement would allow the mall to proceed with its plans to invest about $50 million on Hawthorn redevelopment and renovations.

“Due to the economy and without the village participation in the economic incentive program, the property owner would not be able to do the project, further exacerbating the present economic concerns of the village,” according to a memo from village staff to trustees.

Vernon Hills trustees were scheduled to vote on the economic incentive agreement this week, but final details had not yet been ironed out. The board rescheduled its vote for June 4.

“Hopefully with the Is dotted and the Ts crossed, we’ll have a very equitable agreement,” Trustee James Schultz said.

Assistant Village Manager John Kalmar said once the agreement is in place, construction permits can be issued. Plans include the addition of Dave & Busters to the mall and the construction of an AMC Theater between Sears and JC Penney.

Construction is expected to begin within the next two or three months, and Westfield officials hope to open the theater by November 2014, according to village memos.