Arlington Economic Alliance

AGENDA ARLINGTON ECONOMIC ALLIANCE Community Room, 3rd Floor Arlington Heights Village Hall, 33 S. Arlington Heights Rd. Arlington Heights IL 60005 May 21, 2025 7:30 AM I. CALL TO ORDER II. ROLL CALL OF MEMBERS III. APPROVAL OF MINUTES A. Minutes 4/16/25 IV. REPORTS A. Development Update V. OLD BUSINESS A. Village Board Strategic Priorities B. Economic Alliance Work Plan - 2025 VI. NEW BUSINESS A. 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. Page 1 of 10  DRAFT 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 Mertes stated that the developer of Arlington 425 had withdrawn the project.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 Page 2 of 10  DRAFT 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 Page 3 of 10  DRAFT 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 Page 4 of 10 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 19, 2025 meeting, then amended and approved by the Alliance at their April 16, 2025 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: Development Opportunities The Economic Alliance encourages efforts to market and develop (or redevelop) key sites, such as Arlington Park and vacant office space, in a way that benefits the Village. 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. 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 facilitating or encouraging investment in the creation of a business incubator. Such a facility could be utilized to support start-ups in desirable industries, or used to support existing business sectors, such as restaurants, arts and cultural amenities, and manufacturing. 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. 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. 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 5 of 10 Arlington Economic Alliance 2025 Work Plan – January 2025 Overview In 2024, the Arlington Economic Alliance made substantive efforts to assist businesses within the Village. A summary of key accomplishments includes: • Hosting The Economy in Focus, a small business breakfast program at the Metropolis Ballroom that featured Jason Turner, economist for Wintrust, as the keynote speaker; approximately 60 people attended • Recommending, to the Village Board, modifications to the small business Zero Interest Loan Program by creating the Microloan and Mega Loan options; these changes were unanimously approved by the Board • Supporting Advanced CNC Manufacturing, an educational program that provided tours of two Arlington Heights manufacturers to High School District 214 students; in addition, the students were presented with information on manufacturing as a potential viable career path, especially for those not seeking a traditional four-year college degree • Mailing handwritten notes of appreciation to businesses celebrating the five-year or ten- year anniversary of their opening in Arlington Heights For the Commission’s 2025 work plan, the Economic Alliance would like to focus on business retention and has outlined the following initiatives to help support existing businesses in Arlington Heights:  Small Business Programs and Events The Arlington Economic Alliance intends to continue informing and educating small business owners through multiple programs in 2025. These could be in the form of seminars and forums, or could be in the form of supporting existing events and programs currently being undertaken by community partners. The first of these would be a “State of the Village” address, hosted by the Alliance. Additional programs and events will be discussed and formulated by the Commission throughout the year. These programs may be used as channels to promote resources available to small businesses, provide industry-specific content, and offer pathways for students to connect with local employers in order to discover potential career opportunities.  Notes of Appreciation to Businesses The Alliance again plans to handwrite notes with uniform messaging to businesses that are celebrating their five-year and ten-year anniversaries in Arlington Heights. In 2024, 69 such notes were sent out, which expressed gratitude for the business and offered the Alliance’s assistance. Included with each message was a reference card that summaries the intent, purpose, and responsibilities of the Commission, as well as the names of the current commissioners. The list of recipients would again be provided by Village staff, based upon approved business licenses from 2015 and 2020. Summary The Arlington Economic Alliance continues to seek ways to support the small business community, and this work plan serves as a guide for 2025. The Alliance may also consider other projects, not identified in this plan, as the year progresses. Furthermore, the Commission offers its assistance to provide advisement and recommendations to the Village Board at their request, and to discuss any economic development matters as needed. Page 6 of 10  5/21/2025 Item: Economic Development Statistics Report Department: Planning & Community Development Item Description: ATTACHMENTS: 1. ED Statistics Report (May 2025) Page 7 of 10 Village of Arlington Heights Economic Development Statistics Report Department of Planning & Community Development May 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 $3,325,998 $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 Source: Illinois Department of Revenue (webapps.illinois.gov/rev/sic) Sales Tax Generated (Municipal + Home Rule) CATEGORY 2024 2023 2022 2021 2020 TOTAL $26,212,990 $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 $738,841 $712,378 $734,025 $674,115 $420,837 Furniture & H.H. & Radio $2,068,067 $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 $6,720,704 $5,617,372 $5,648,267 $5,583,788 $3,185,068 Agriculture & All Others $3,326,465 $3,437,088 $3,518,797 $3,155,389 $1,998,610 Manufacturers $362,130 $329,917 $384,244 $395,375 $325,216 Source: Illinois Department of Revenue (webapps.illinois.gov/rev/sic) 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 5.4 million 30.6 million May 2025 5.5% 5.7% 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 (May 2025) Office Vacancy Rates End of Arlington Northwest Year Heights Submarket Existing SF 4.8 million 33.5 million May 2025 19.9% 24.9% 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 (May 2025) Industrial/Flex Vacancy Rates End of Arlington Northwest Year Heights Submarket Existing SF 5.3 million 81.5 million May 2025 11.6% 4.9% 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 (May 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