Inter-Continental Real Estate and Development
Submits Application for The District
Art-inspired development in Naperville would revitalize re-opened local economy, create vibrant community, generate millions in annual tax revenue
FOR IMMEDIATE RELEASE
NAPERVILLE, IL (July 29, 2020) – Inter-Continental Real Estate and Development Corp. (ICRED) announced today it has filed an application to build The District, an art-inspired mixed-use development that will create a vibrant “live, work, play, stay” community on Naperville’s north boundary and generate millions of dollars in tax revenue for schools and local units of government.
The District is a 100-acre development project at the northwest quadrant of the Route 59 and the I-88 intersection that will feature residential, office, retail-commercial, hospitality, entertainment, and recreation assets with enhanced accessibility to the nearby Illinois Prairie Path.
ICRED President Aristotle Halikias said his company is the developer leading this $200 million mixed use development project because he firmly believes the Naperville and DuPage County region is poised for strong growth as the regional economy recovers from COVID-19.
“We continue to make substantial commitments in Naperville because we believe the City can and will recover,” said Mr. Halikias. “Development is driven by numbers, and we like the potential for sustained growth in the area over the long-term.
“But we also know The District offers intangibles that aren’t found on spreadsheets. We’re creating an art-inspired and economic hub on Naperville’s northern boundary that will be a focal point for the region to live, work, play, and stay,” he said.
Mr. Halikias said ICRED carefully evaluated the decision to move forward with The District during the ongoing COVID-19 and economic crises and concluded the project’s long-term benefits outweigh current obstacles.
“When we overcome the economic and public health crises that confront us today,” he said, “The District will be a safe, arts-focused community with access to sustainable open spaces that regenerates and revitalizes the economy in Naperville and DuPage County. It reflects our belief in the community and its potential.”
Mr. Halikias explained The District will feature art-focused luxury living that will appeal to empty-nesters looking to downsize out of their Naperville homes, couples and singles. The District also will include dynamic entertainment venues, and full-service hospitality that revolve around a village center where the community can gather and enjoy art shows, concerts, and festivals.
The project will create an arts district with public art and sculptures throughout the development. The District also will provide enhanced accessibility to the nearby Illinois Prairie Path. This mixed-use development further exemplifies Naperville’s continued commitment to quality of life.
Existing recreational assets TopGolf and WhirlyBall will be maintained and featured at The District, while the former Odyssey Fun World asset is included in the development plans in an entertainment oriented adaptive reuse capacity.
Building a ‘Generational Asset’
“The District offers significant advantages for Naperville and DuPage County in several important ways,” said Mr. Halikias. “First, it will transform this site to a vibrant art inspired mixed-use community from its current underutilized industrial zoning. Second, it will create a formal gateway on Naperville’s north side at this highly visible and accessible location. And lastly, this development will grow sales and real estate tax revenues, jobs, and enhance long-term economic prosperity in the city and region.
“The District will be inspired by art, as opposed to an afterthought, where art comes after the fact or is required,” he said. “It is very important to us that we build a community with the infrastructure and amenities to live, work, play and stay.”
“Bottom line, we see The District as an opportunity to transform an under-utilized property into a vibrant, generational asset for Naperville, DuPage County, and the region,” he said.
Naperville Mayor Steve Chirico mentioned plans for The District in his recent State of the City speech, saying the area “is becoming one of those modern destinations through new housing and entertainment options. That includes building apartments with a unique rooftop event space planned in the next year or two.
“It won’t happen overnight but putting the wheels in motion for big plans shows our ongoing vibrancy and value in the Chicago region. We’re proud when companies see the value Naperville offers,” said Mayor Chirico.
Naperville Century Walk President Brand Bobosky expressed appreciation for the beginning of a long-term partnership with ICRED.
“We are deeply grateful for our relationship with Inter-Continental,” said Mr. Bobosky. “It’s clear to us they share our commitment to Naperville and the arts. Basing our headquarters at The District provides us with enormous opportunities that will benefit Naperville for generations and is exactly the kind of collaboration we envisioned.”
The District By the Numbers
Under the planned unit development application ICRED submitted to the City of Naperville, The District includes the following key features and facts:
- 410 residential units, with 75 percent (306 units) one-bedroom units or smaller;
- 699 residential population, at stabilized occupancy of 95 percent;
- 25 school-age children (estimated);
- 170,000 square feet of restaurant, retail, and medical office space;
- 208 rooms at two full-service hotels;
- Access to 60-plus miles of bicycle and walking trails on the Illinois Prairie Path;
- Digital art walls;
- 200 years of Naperville history based at the new headquarters of Naperville Century Walk;
- 777 estimated full-time jobs at full-scale development; and
- 786 estimated construction related jobs.
Tax Revenue and Financial Benefits
An economic analysis prepared by Teska Associates, Inc., shows The District is projected to generate approximately $2,331,000 in annual property tax revenue for 10 taxing districts, a significant increase of 15 times over the $153,800 in 2018 property tax revenue generated by the current parcels.
Of that new property tax revenue total, Indian Prairie Unit School District 204 would receive nearly $1.8 million in new annual property tax revenue. After accounting for the estimated 25 school-aged children, District 204 would receive $1,679,000 in estimated additional annual property tax revenue.
The analysis also showed The District would produce $1.5 million in projected annual tax revenue to Naperville when the project is fully developed, a figure that includes revenue from property taxes ($158,554), estimated sales taxes ($882,274), hotel/motel taxes ($367,679), and state per capita from motor fuel, income and use taxes ($101,009). After factoring in municipal cost of services of $660,381, Naperville would gain $849,136 in new annual revenue.
Using the same formula for the property as it is currently developed, Naperville would gain $10,462 in new revenue. If the property were fully developed under its current industrial zoning, Naperville would suffer a loss of $308,605.
Unlike other developments in Naperville and nearby areas, The District is not requesting financial incentives or subsidies for the buildings and users.
Moving forward, The District application will be reviewed for approval by the Naperville Planning and Zoning Commission and the Naperville City Council.
The District was designed by Naperville-based Hitchcock Design Group, with civil engineering services provided by Civil and Environmental Consultants Inc., also based in Naperville. Legal counsel for the project is being handled by former DuPage County Board Chairman Robert Schillerstrom and former Naperville City Attorney Michael Roth, both with Ice Miller LLP.
About Inter-Continental Real Estate and Development Corporation:
Founded in 1968, Inter-Continental Real Estate and Development (“ICRED”) is a diverse group of operating entities with primary emphasis in real estate and development related services, banking and financial related services, and leisure and entertainment facility management. Headquartered in Oak Brook, IL, ICRED also has international locations in Toronto, Canada and Athens, Greece. More information is available at www.icred.com.
Contact:
Jim Prescott
c/o Inter-Continental Real Estate and Development
(m) 708 717 2110
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