===== PDF PAGE 31 ===== [Extraction: OCR (rendered-page OCR)] CITY OF WEST CHICAGO DEVELOPMENT COMMITTEE AGENDA ITEM SUMMARY ITEM TITLE: AGENDAITEMNUMBER: 2:4: Discussion of an expanded U-Haul Storage Use U-Haul (Amerco) / Mosaic Crossing Shopping Center FILE NUMBER: 1867 N. Neltnor COMMITTEE AGENDA DATE: Feb. 11, 2019 COUNCIL AGENDA DATE: STAFF REVIEW: Tom Dabareiner AICP SIGNATURE = APPROVED BY CITY ADMINISTRATOR: Michael Guttman SIGNATURE ITEM SUMMARY: UPDATE On February 4, 2019, Amerco submitted a revised site plan which eliminates the new enclosed storage building once proposed for the property’s northwest corner. The new warehousing in that vicinity would remain. The effect is to reduce the number of storage units from 950 to 504. While the number of units declined, the visual impact remains spread across the property. Staff stands by the original memo from January 14, 2019, which is reproduced below. ORIGINAL REPORT U-Haul opened a small retail facility at 1867 N. Neltnor last year after receiving majority support from the Development Committee at its March 12, 2018, meeting. Amerco is their development arm. The discussion at that time was for use of about 30,000 square feet of the former Hobby Lobby building by U-Haul for retail and storage operations. Because the property is zoned B-3 Regional Shopping Dis- trict, a retail facility could open right away under that zoning, but any storage requires an amendment to the Mosaic Crossing PUD. Since then, U-Haul has expanded its plans for the property, acquiring an interest in the majority of the site. The expansion is significant, taking the number of storage units from about 300 to 950. Staff felt that Development Committee members should have an opportunity to review the changes which would alter the overall function of the corner. The plans include a combination of new con- struction and adaptive re-use of existing buildings. They also may seek to paint the existing brick as part of their branding effort and clarification should be provided to them regarding that option. Summary of Changes: (1) Approximately 50,000 square feet of vacant retail at the site’s southeast corner would be changed to 39,000 square feet of climate-controlled storage, plus 3,000 square feet of showroom. This area’s remaining space includes offices, a vehicle rental space, and a load- ing dock. (2) About 120 ground-level storage units are proposed for the “elbow’—the currently emp- ty area located between the eastern building and the northern building. (3) A new 3-story, 17,000 square foot U-Haul building would be constructed at the property’s northwest corner, west of Old Time Pottery. It would house a combination of 446 climate-controlled and non-controlled storage units. This area would also include a small 8,000 square foot warehousing facility. ===== PDF PAGE 32 ===== [Extraction: OCR (rendered-page OCR)] Locations of rental vehicles would be in various locations around the property, although City staff is hoping for a way to better “corral” the trucks and trailers—a task made more complex by the dis- tances from one corner of the U-Haul business to the other. This U-Haul facility would be staffed by 10-15 employees. Key Points: (1) There is extraordinary demand for storage units and no expert predicts saturation of this phe- nomenon anytime soon. U-Haul expects to serve a residential market as far as four miles away. (2) Customers become aware of U-Haul primarily by driving by a facility and the traffic feeding the North/Neltnor intersection is very attractive in this case. (3) They are strong revenue generators for the owner, with higher per-square-foot earnings than most retail, combined with lower maintenance costs. (4) Improved “curb appeal” is provided through a revitalized, colorful fagade treatment. From a “challenges” perspective: (1) The strong financial returns are one reason why storage facilities will stay in place at the ex- pense of retail. Retail cannot disrupt that market because retail’s net earnings per-square-foot are lower, so once established as storage the ability to recruit retail to the corner is sharply curtailed. (2) U-Haul touts benefits such as “very little traffic” but a successful shopping center thrives on syn- ergistic interaction among the various traffic generators/uses. Staff concedes there is little on-site traffic now and, based on a lack of interest and a recent market study, a retail market may only min- imally exist for that corner for some time. However, the future may see new retail opportunities. Cit- ies are able to plan for the long-term. (3) Other uses at that corner may be concerned with this change in direction. The change in use and lack of synergy could impair the ability to replace any of the outlots with a B-3 type of use, as they close or change ownership. Storage facilities can take on the feel of a manufacturing district which could discourage uses like restaurants. (4) If the storage use is to become the predominant activity at this corner, many would argue that instead of a PUD amendment a full rezoning of the underlying zoning to Manufacturing should oc- cur, within which storage facilities are allowed as a special use. Such a designation conflicts with the pre-established pattern of development and opens up the property to more objectionable activi- ties. (5) While the market for self-storage is strong for the foreseeable future, if that changes, or other decisions force U-Haul to close at this location, the property is left with some serious challenges as to how the property could be re-used. Significant demolition and rehabilitation would be needed. (6) Storage facilities generate very little tax revenue and job creation for their host municipalities. (7) Staff was unable to identify any similarly-sized storage facilities with the same impact on retail development in northeastern Illinois, which speaks to how unique this proposal is and also makes it difficult to make comparisons. The expanded storage facility is significantly larger than that seen by the Development Committee 10 months ago and therefore staff is seeking additional direction from Committee members. The U- Haul facility would establish a successful business use on a property that has seen many challeng- ===== PDF PAGE 33 ===== [Extraction: OCR (rendered-page OCR)] es in the last decade. However, the primary problems with the expansion are in the manner which the marketplace may preclude attracting retail after storage is established, the use’s lack of synergy with the rest of the shopping center, and what happens to the property should U-Haul leave the site. Staff remains comfortable with the rehab of the southeast corner of the property along the lines of that discussed 10 months ago. Finally, staff recommends against allowing the painting of any brick. Pc: Location Map Revised Site Plan ACTIONS PROPOSED: Conceptual discussion of the potential for expanded development of Mosaic Crossing as a U-Haul storage facility. COMMITTEE RECOMMENDATION: ===== PDF PAGE 34 ===== [Extraction: OCR (rendered-page OCR)] oy ios U-Haul Interest in Mosaic Crossing “ox ig A? January 4, 2019 0.4 mi 1 1 1 1 T T T 1 0.7 km Source: Esri, DigitalGlobe, GeoEye, Earthstar Geographics, CNES/Airbus 0 0.1 0.2 L I 0 0.17 0.35 ===== PDF PAGE 35 ===== [Extraction: OCR (rendered-page OCR)] | _sutet notes: | NOTES: as SOE SETCK PROPOSED 1-STORY BUILDING 8} < ai : \ : : ere mL. SITE AERIAL SCALE: N.T.S. 36,828 SO. FT. E 454 ACRES ‘ Zoning Information Project Name: U-Haul Moving & Storage of West Chicago Lor 4 AREA S ‘ 39.386 SO. _ S Ne Municipality: City of West Chicago Oso41 AcagS. Y REVISIONS: 155083 so. Ft © * Project Address: 1867 N. Neltnor Blvd., West Chicago, IL 60185 Seton Aones mes Zone: B3 - Regional Shopping PUD — Planned Unit Development Adjacent Zoning: N- B3 - Regional Shopping/ PUD — Planned Unit Development E- B3 — Regional Shopping/ PUD — Planned Unit Development S- B3 - Regional Shopping W- B3 - Regional Shopping/ PUD — Planned Unit Development AREA: 24,268 SO. fr. 08575 Ackeb nUck set truck BURNS Permitted Uses: Retail, Warehousing / Storage (SUP) And Auto Rental (SUP) Bulk Requirements Setbacks: Front yard: 50 ft. (75 ft per Survey) Side yard: 35 ft. Rear yard: 35 ft Corer yard: 50 ft. INTIAL | NOTES eee % ze FAR: Not to exceed 3.0 - Existing Building Lor'ns AREA: Height Limit: 75 ft. - Existing Building ‘A’ does not exceed 75° aes acRES YY \ Proposed Building 'B' not to exceed 75° 1 p704/200 : \ Parking: Cc ® > \ 4 Retail = 1 sp./250 sf - 12 Req'd / 12 Provided \ \ 3 = 4.5 sp/ 1000 sf (in CCRss) - 708 Req'd / 758 Total spaces provided VAS Self-storage Facility = 1 sp,/ 100 storage units - 6 Req'd / 7 Provided -& See ee Sa S Warehouses = 2 sp./ 1,000 sf. of floor area - 4 Req'd / 4 Provided Landscape Setback: Front: 20 ft. - Extg meets requirement Side: 10 ft. - Extg meets requirement Rear 15 ft. - Extg meets requirement Corner: 20 ft. - Extg meets requirement Lor 12 “AREA: 335,224 $0. FT. 7.5956 ACRES ARCHITECT LOGO: EXISTING 1-STORY BUILDING ‘A’ PRoroseD STURSIOMGE ++300003F AMERCO. CONSTRUCTION DEPARTMENT ‘2727 NORTH CENTRAL AVENUE PHOENIX, ARIZONA 85004 P: (602) 263-6502 TRUER SURI Lor 7 (NOT PART OF LANDS SURVEYED) BREA: 134,641 SQ. FT. 30309 ACRES ‘SITE ADDRESS: — U-Haul of West Chicago 1867 N Neltnor Blvd West Chicago, IL 60185 ‘SHEET CONTENTS: Preliminary 856075 DRAWN: CHECKED: © 2018 AMERCO REAL ESTATE COMPANY PRELIMINARY SITE PLAN SCALE: 1" = 60