Arlington Economic Alliance

Regular Meeting

Arlington Heights, IL · April 16, 2025

Minutes

APPROVED MINUTES OF THE MEETING OF THE ARLINGTON ECONOMIC ALLIANCE HELD ON APRIL 16, 2025 AT 7:30 A.M. AT THE VILLAGE HALL MEMBERS PRESENT: MEMBERS ABSENT: Tony Guido Tonia Etoh Heather Larson Terry Iverson Michael Mulder Ellen Para Kerri Oots Andrew Stengren Marc Poulos John Toliopoulos Brian Roginski Andi Ruhl STAFF PRESENT: Michael Mertes – Business Development Manager ALSO PRESENT: Keith Moens, Resident Appointment of Temporary Chair HEATHER LARSON MOVED AND MARC POULOS SECONDED A MOTION TO DESIGNATE ANDI RUHL AS TEMPORARY CHAIR FOR THE APRIL 16, 2025 ARLINGTON ECONOMIC ALLIANCE MEETING. ALL ALLIANCE MEMBERS VOTED IN FAVOR OF THE MOTION. Call to Order Temporary Chair Andi Ruhl called the meeting to order at 7:34 AM. Approval of Minutes – March 19, 2025 The minutes of the March 19, 2025 Arlington Economic Alliance meeting were reviewed. MICHAEL MULDER MOVED AND BRIAN ROGINSKI SECONDED A MOTION TO APPROVE THE DRAFT MARCH 19, 2025 ARLINGTON ECONOMIC ALLIANCE MEETING MINUTES. ALL ALLIANCE MEMBERS VOTED IN FAVOR OF THE MOTION. Development Update Mr. Mertes stated that the developer of Arlington 425 had withdrawn the project. Mr. Mulder inquired about the status of the former office complex property at the intersection of Seegers and Arlington Heights Roads. Mr. Mertes said that a senior living facility was previously approved at the site, but Staff has not received a formal proposal for any new development as of yet. Village Board Strategic Priorities Mr. Mertes explained the that Village Manager has requested items from advisory Commissions to provide to the Village Board as part of their upcoming two-year strategic planning meeting. Also provided to the Alliance was a summary of the discussion from the previous month’s meeting. Ms. Larson wanted to emphasize re-tenanting or redeveloping vacant office space. Ms. Ruhl has seen significant demand in the visual arts and suggested the creation of an Arts District, whether located within a specific facility or a designated geographic area. This includes encouraging re-use of vacant industrial spaces. Residual benefits could include attracting new businesses and visitors who will spend money at local businesses such as restaurants. Ms. Larson recommended incorporating this into the “Business Incubation” section of the summary to the Village Board. Page 1 APPROVED Mr. Mulder inquired about the Hickory-Kensington neighborhood and other industrial sections of the community as opportunities to convert into arts-related uses. In regards to business incubation, he feels that the Village’s primary role should be in helping facilitate, and encouraging private sector investment in, such a facility. Mr. Guido inquired about marketing efforts and Mr. Mertes explained Staff’s efforts. Mr. Mulder asked about the Arlington Park property and how the Village would leverage the marketing of site redevelopment while considering potential impact on other local businesses. Ms. Larson suggested that proactive marketing of key development and redevelopment sites be incorporated into the strategic plan recommendations, and Mr. Mulder concurred. Mr. Roginski spoke regarding his participation with the Downtown Arlington Heights Business Alliance and wants to try and ensure that a complement to the Downtown, and not a direct competitor, is being created at the Arlington Park site. Ms. Ruhl commented that many people will still be more attracted to the Downtown’s environment and want to support local, independent merchants. Adding to that, Ms. Oots said that different demographics will be attracted to each area, while Mr. Poulos sees a potential uptick in customer traffic throughout the community. Mr. Mulder wants to make sure that impacts on Metra are considered as well. A children’s business fair was suggested as a pop-up event by Ms. Ruhl. Other communities have done something like this, and it could encourage youth entrepreneurship. Ms. Larson summarized the Alliance’s comments for amending the list of strategic priorities as: 1. Moving the “Development Opportunities” section to the top of the list 2. Incorporating efforts to market, develop, or redevelop key sites to the “Development Opportunities” section 3. Adding cultural amenities to the “Business Incubation” section HEATHER LARSON MADE A MOTION TO APPROVE THE ARLINGTON ECONOMIC ALLIANCE STRATEGIC PRIORITIES AS AMENDED. ANDI RUHL SECONDED. ALL ALLIANCE MEMBERS VOTED IN FAVOR OF THE MOTION. Economic Development Statistics Report Due to time constraints, Mr. Mertes suggested that the Commission postpone discussion of the Economic Development Statistics Report to a future meeting. ANDI RUHL MADE A MOTION TO TABLE THE ECONOMIC DEVELOPMENT STATISTICS REPORT TO A FUTURE ARLINGTON ECONOMIC ALLIANCE MEETING. MICHAEL MULDER SECONDED. ALL ALLIANCE MEMBERS VOTED IN FAVOR OF THE MOTION. Other Business Mr. Larson gave a recap of Meet Chicago Northwest’s 2025 Restaurant Week promotion. There were 25 participating restaurants from Arlington Heights. Over $50,000 was spent on a media campaign to promote the participating restaurants from the communities that Meet Chicago Northwest represents. As a restaurant owner, Mr. Roginski felt it was a successful event that was marketed well. Mr. Guido asked if take-out was included and Ms. Larson responded that the focus is primarily on dine-in, but that a few restaurants did offer take- out options. Meet Chicago Northwest also partnered with the Downtown Arlington Heights Business Alliance on a tour of the Downtown for local hoteliers. This was meant as a way for hotel staff to encourage guests to visit Downtown Arlington Heights during their stay. Mr. Roginski expressed support of this effort. Mr. Guido discussed a new commercial truck Page 2 APPROVED center at Arlington Heights Ford. Mr. Roginski mentioned that Cortland’s Garage will be celebrating its 10th anniversary in September. Public Comment There was no public comment. Adjournment BRIAN ROGINSKI MOVED AND TONY GUIDO SECONDED A MOTION TO ADJOURN. ALL ALLIANCE MEMBERS VOTED IN FAVOR OF THE MOTION. The meeting adjourned at 8:10 AM. Andi Ruhl, Temporary Chair Arlington Economic Alliance Prepared by Department of Planning & Community Development Page 3

Agenda

Packet

AGENDA ARLINGTON ECONOMIC ALLIANCE Community Room, 3rd Floor Arlington Heights Village Hall, 33 S. Arlington Heights Rd. Arlington Heights IL 60005 April 16, 2025 7:30 AM I. CALL TO ORDER II. ROLL CALL OF MEMBERS III. APPROVAL OF MINUTES A. March 19, 2025 Minutes IV. REPORTS A. Development Update V. OLD BUSINESS VI. NEW BUSINESS A. Village Board Strategic Priorities B. Economic Development Statistics Report VII. OTHER BUSINESS VIII. PUBLIC COMMENT Anyone wishing to speak on a subject not on the Agenda may speak at this time. Please limit your comments to three minutes. IX. ADJOURNMENT Persons with disabilities requiring auxiliary aids or services, such as an American Sign Language interpreter or written materials in accessible formats, should contact the Health & Human Services Department, at 33 S. Arlington Heights Road, Arlington Heights, IL 60005, healthmail@vah.com or 847/368-5760. [MEET_FOOT] Page 1 of 10 DRAFT MINUTES OF THE MEETING OF THE ARLINGTON ECONOMIC ALLIANCE HELD ON MARCH 19 AT 7:30 A.M. AT THE VILLAGE HALL MEMBERS PRESENT: MEMBERS ABSENT: Andrew Stengren – Chairman Tony Guido Tonia Etoh Ellen Para Terry Iverson John Toliopoulos Heather Larson Andi Ruhl Michael Mulder Kerri Oots Marc Poulos Brian Roginski STAFF PRESENT: Michael Mertes – Business Development Manager ALSO PRESENT: Keith Moens, Resident Patrick Mogge, High School District 214 Dr. Scott Rowe, High School District 214 Call to Order Chairman Andrew Stengren called the meeting to order at 7:33 AM. Approval of Minutes – January 15, 2025 The meeting minutes of January 15, 2025 Arlington Economic Alliance meeting were reviewed. MICHAEL MULDER MOVED AND MARC POULOS SECONDED A MOTION TO APPROVE THE DRAFT JANUARY 15, 2025 ARLINGTON ECONOMIC ALLIANCE MEETING MINUTES. ALL ALLIANCE MEMBERS VOTED IN FAVOR OF THE MOTION. Development Update Urban Air, a children’s entertainment center, was approved for a Special Use at Arlington Plaza. A $25,000 small business zero interest loan was approved for Bitter & Sweet Cocktail Boutique to assist with their build-out and shelving. The Village Board approved a resolution in March authorizing commencement of engineering and traffic studies at Arlington Park. Additionally, Ellen Para will not be renewing her term on the Alliance when it expires in April. The Commission thanked her for her service. Economic Alliance Work Plan – 2025 The approved 2025 Economic Alliance work plan was submitted to the Village Manager following the Commission’s meeting in January. The “State of the Village” Alliance Breakfast program, with Mayor Hayes as keynote speaker, was held at the Metropolis Ballroom on March 13th. Approximately 80 people attended. Discussion of ideas for another Alliance- sponsored program is planned for the next regularly-scheduled Commission meeting. Mr. Mertes also plans to brings notecards to sign “Notes of Appreciation” at a future meeting. Ms. Larson complimented the breakfast program and suggested a similar program once the new mayor has taken office, following the April election. Chair Stengren thanked the Commissioners who were in attendance, and acknowledged the Mayor’s service to the Village and support of local businesses. He would like to see the Alliance build on this particular event and do it on an annual basis. Mr. Mulder suggested “Vision of the Village” as a potential theme moving forward. Page 1 Page 2 of 10 DRAFT High School District 214 Update Mr. Mertes introduced Dr. Scott Rowe, Superintendent of High School District 214, and Patrick Mogge, the District’s Director of Community Outreach and Engagement. Dr. Rowe discussed implementation of the school district’s strategic plan, it’s first since 1987, that will be presented to the School Board in a few months for approval. Dr. Rowe provided an overview of District 214, including its facilities, staff, and student body. He also summarized programs that each of the six high schools puts on annually. Additionally, Dr. Rowe provided the Alliance with an outline of the goals of the strategic plan. Chair Stengren is impressed with the school district’s well-rounded focus and inquired about planned improvements to buildings. Dr. Rowe referenced the Facilities Maintenance Plan that identifies where these properties are in terms of their life cycle, and prioritizes which sites have the most immediate needs. Many of the improvements are limited to the summer months, when students are not in session. Mr. Iverson praised the school district regarding their footprint in terms of promoting the manufacturing sector, and is an advocate for their efforts. Chair Stengren asked how the business community can further partner with the School District, and provide work experience opportunities to their students. Dr. Rowe’s recommendation is to continue supporting economic development efforts. Many people move to the area for the schools, and the school district can custom-build a program for businesses looking to work with local students. Mr. Mogge also referenced District 214’s apprenticeship program and asked how D214 can broaden and grow its outreach to the business community. Mr. Mulder identified the value of STEM programming. He sees value in expanding STEM learning opportunities across the entire community while looking for ways to tie in other local resources such as the Library’s Makerplace. Ms. Larson mentioned District 214’s hospitality program, and offered to discuss career opportunities with students participating in that program. Village Board Strategic Priorities The Village Manager has requested feedback from advisory commissions for the Village Board’s upcoming biennial strategic planning meeting. This would involve issues that the Commission feels are important, and that the Board should consider as part of the strategic planning process. For reference, Mr. Mertes provided the letter sent from the Alliance to the Mayor and Trustees in 2023, and asked that the Commission meet in April to approve an updated letter based upon the discussion from this meeting. Ms. Larson asked how real estate brokers are made aware of significant development sites in Arlington Heights. Mr. Mertes said that information is shared via CoStar data, direct discussions with brokers, and meetings at trade shows. Mr. Iverson suggested an event that brings in real estate representatives to learn about site opportunities in the Village. Mr. Poulos asked about business attraction efforts, and Mr. Mertes said that this is done by staff and often targets specific sites or areas in the Village, such as the Northwest Gateway Center for industrial development. Mr. Iverson asked if a business incubator has been contemplated, and referenced such a use in another community, on a property that was owned by the municipality. An incubator could support start-up businesses, such as manufacturers. The Library’s Makerplace could be a synergistic use, and be greater utilized by the incubator’s tenants. Page 2 Page 3 of 10 DRAFT Chair Stengren asked if the Alliance could partner with other municipalities that are also within High School District 214’s boundaries. The business communities could collaborate and set goals to fundraise for improvements to the schools’ facilities. In short, how can the communities partner together, and how can the respective business communities support that endeavor? Ms. Larson suggested that the District 214 Education Foundation could be such a channel for that effort. Mr. Mulder sees this as a potential win-win by encouraging working with local contractors. Supporting local businesses will generate greater buy-in from the community. Ms. Larson also added encouraging development of the Arlington Park property as another priority for the Village Board to consider as part of the strategic planning process. Other Business The Village is conducting a survey, and feedback will inform how the Village budgets its federal Community Development Block Grant (CDBG) allocations over the next several years. Mr. Mertes asked the Alliance members to consider taking the survey and forwarding it along to their local contacts. Public Comment There was no public comment. Adjournment HEATHER LARSON MOVED AND KERRI OOTS SECONDED A MOTION TO ADJOURN. ALL ALLIANCE MEMBERS VOTED IN FAVOR OF THE MOTION. The meeting adjourned at 8:57 AM. Andrew Stengren, Chair Arlington Economic Alliance Prepared by Department of Planning & Community Development Page 3 Page 4 of 10 4/16/2025 Item: Village Board Strategic Priorities Department: Item Description: ATTACHMENTS: 1. Economic Alliance Input - 2025 Strategic Priorities Page 5 of 10 April 16, 2025 2025 Village Board Strategic Plan - Arlington Economic Alliance Input As part of the Village Board’s upcoming biennial strategic planning process, the Arlington Economic Alliance respectfully submits the following economic development items for their consideration. These points of focus were initially discussed at the Commission’s March meeting. The Alliance understands that not every item outlined in this letter may be included in the two-year strategic priorities, but appreciates the opportunity to provide the following: Inter-Community Support of School District 214 The Economic Alliance recognizes School District 214 as an asset to the region and wishes for it to maintain its reputation as a high-performing school district. The Commission sees benefit in collaboration among the municipalities that send students to the district’s high schools and specialized schools. Opportunities that could stem from such a partnership include supporting reinvestment in school buildings and facilities. Further, finding ways to involve the business community can be a win-win, such as generating financial support for programs and facility improvements by local businesses, and encouraging the hiring of local contractors. Business Incubation The Economic Alliance continues to look for ways to cultivate growth of Arlington Heights businesses, while trying to put the Village at the forefront of entrepreneurship as well. One opportunity could be investment in a business incubator. Such a facility could be used to support existing industries, such as restaurants or manufacturing, or could be utilized to support start-ups in industries desirable to the Village. Such a facility could also create synergy with, and use of, the Arlington Heights Memorial Library Makerplace, and potentially provide a space for local students to channel their creativity and learn first-hand about operating a business. Development Opportunities The Economic Alliance encourages efforts to develop, or redevelop, key sites in a way that benefits the Village, such as the Arlington Park property. Further encouraged is continued communication and engagement with the real estate community through trade shows, events, and direct outreach, as well as ongoing targeted attraction of businesses to help fill existing commercial and industrial vacancies. Summary The Arlington Economic Alliance welcomes any feedback regarding these items. As the Village’s advisory body for economic development matters in Arlington Heights, the Alliance appreciates the Village Board’s consideration, and looks forward to continuing to help support the local business community. Page 6 of 10 4/16/2025 Item: Economic Development Statistics Report Department: Item Description: ATTACHMENTS: 1. Economic Development Statistics Report (April 2025) Page 7 of 10 Village of Arlington Heights Economic Development Statistics Report Department of Planning & Community Development April 2025 Page 8 of 10 Retail Sales CATEGORY 2024 2023 2022 2021 2020 TOTAL $1,611,085,171 $1,526,686,885 $1,567,045,987 $1,534,522,721 $1,214,707,014 General Merchandise $86,705,310 $71,629,427 $71,970,864 $65,883,918 $53,247,902 Food $199,963,579 $192,938,861 $192,133,415 $186,149,544 $193,525,074 Eating & Drinking Places $214,054,768 $205,867,138 $186,931,429 $172,495,402 $138,278,901 Apparel $37,097,337 $35,777,274 $36,830,993 $33,831,551 $21,149,891 Furniture & H.H. & Radio $102,936,809 $96,797,932 $98,101,424 $94,957,871 $79,542,426 Lumber, Bldg., Hardware $67,078,224 $70,158,540 $82,624,735 $74,877,072 $68,460,342 Auto & Filling Stations $261,436,302 $305,822,519 $325,668,764 $353,756,647 $309,646,528 Drugs & Misc. Retail $432,502,438 $334,934,211 $348,464,306 $345,118,852 $226,377,176 Agriculture & All Others $189,780,900 $195,993,733 $204,851,586 $187,426,483 $107,964,560 Manufacturers $18,978,090 $16,767,250 $19,468,471 $20,025,381 $16,514,214 Total Sales Tax Revenue $26,203,221 $24,988,730 $25,250,358 $24,349,062 $18,455,970 Source: Illinois Department of Revenue / Village of Arlington Heights Department of Finance Sales Tax Generated (Municipal + Home Rule) CATEGORY 2025 2023 2022 2021 2020 TOTAL $26,203,221 $24,985,743 $25,247,650 $24,348,072 $18,455,067 General Merchandise $1,617,495 $1,346,523 $1,363,708 $1,232,522 $985,431 Food $2,539,382 $2,465,626 $2,450,013 $2,391,755 $2,396,154 Eating & Drinking Places $4,078,068 $3,901,888 $3,561,410 $3,267,616 $2,593,417 Apparel $738,720 $712,378 $734,025 $674,115 $420,837 Furniture & H.H. & Radio $2,059,939 $1,928,407 $1,961,937 $1,899,076 $1,590,769 Lumber, Bldg., Hardware $1,339,939 $1,402,043 $1,651,606 $1,496,333 $1,368,248 Auto & Filling Stations $3,418,894 $3,844,501 $3,973,643 $4,252,103 $3,591,317 Drugs & Misc. Retail $6,720,168 $5,617,372 $5,648,267 $5,583,788 $3,185,068 Agriculture & All Others $3,325,998 $3,437,088 $3,518,797 $3,155,389 $1,998,610 Manufacturers $361,848 $329,917 $384,244 $395,375 $325,216 Source: Illinois Department of Revenue New Licensed Businesses Year Businesses Employees Square Feet Major Employers Amazon Fresh; Autos of Chicago; 2024 105 848 410,397 Deloitte Consulting; L.A. Fitness At Home; EcoShield; Gerry’s Café; Red Bull; 2023 71 496 405,563 Action Behavior Centers Amazon Fresh; Fluence Automation; 2022 95 621 656,145 VisionTek Products United Airlines; DMI Logistics; Tarifold; 2021 86 915 482,257 FedEx Express; Eberhard Manufacturing Amazon Services; International Services Inc.; 2020 58 935 625,440 Frito Lay; Carvana Source: Village of Arlington Heights Department of Planning & Community Development 2 Page 9 of 10 Retail Vacancy Rates End of Arlington Northwest Year Heights Submarket Existing SF 5.5 million 30.8 million April 2025 5.5% 5.8% 2024 3.5% 5.3% 2023 4.9% 5.1% 2022 6.2% 6.6% 2021 5.8% 8.3% 2020 9.5% 9.2% Source: CoStar (April 2025) Office Vacancy Rates End of Arlington Northwest Year Heights Submarket Existing SF 4.8 million 33.5 million April 2025 20.3% 24.3% 2024 21.7% 25.7% 2023 22.8% 29.8% 2022 19.3% 22.2% 2021 20.0% 24.8% 2020 20.0% 23.2% Source: CoStar (April 2025) Industrial/Flex Vacancy Rates End of Arlington Northwest Year Heights Submarket Existing SF 5.4 million 81.5 million April 2025 10.6% 5.0% 2024 13.3% 5.1% 2023 8.2% 3.9% 2022 10.4% 3.6% 2021 16.3% 4.3% 2020 13.7% 7.4% Source: CoStar (April 2025) Note: “Northwest Submarket” includes portions or all of the following: Arlington Heights; Buffalo Grove; Elk Grove Village; Hoffman Estates; Mount Prospect; Palatine; Prospect Heights; Rolling Meadows; Schaumburg Unemployment Insurance-Covered Businesses Year Establishments Workers 2024 2,983 37,657 2023 2,966 36,890 2022 2,969 35,482 2021 2,940 39,237 2020 2,893 41,449 Source: IL Department of Employment Security (December 2024) 3 Page 10 of 10