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CITY OF WEST CHICAGO
DEVELOPMENT COMMITTEE
AGENDA ITEM SUMMARY
ITEM TITLE:
AGENDA ITEM NUMBER: 5.C,
IDI Logistics
Home Depot Warehouse FILE NUMBER:
Review and Discussion
COMMITTEE AGENDA DATE: May 13, 2109
COUNCIL AGENDA DATE:
STAFF REVIEW: Tom Dabareiner, AICP SIGNATURE L——
APPROVED BY CITY ADMINISTRATOR: Michael Guttman SIGNATURE
ITEM SUMMARY:
IDI Logistics, a national investor and developer of distribution facilities, is working with Home Depot to
locate a warehouse/distribution center in the Chicago area. Home Depot is the world’s largest home
improvement retailer with more than 2,200 stores in the U.S., Canada and Mexico.
As proposed for the Fabyan/Roosevelt TIF area, the 55 acre site would host a 650,000 square foot
Home Depot distribution center, linked to the BNSF rail line, to enhance the shopping and delivery ex-
perience for Home Depot customers in the Midwest. The facility would employ more than 100 full time
employees here as part of a new Home Depot new ecommerce initiative. Photos from the version of
this concept located in Ogden, Utah are included in the packet. There would be no retail element to the
facility.
The building would be 45’ tall and accommodate two rail spurs and 31 truck loading docks. Truck traf-
fic would average 235 per day, but could reach about 300 on peak days, with access from Fabyan
Parkway and, eventually, Roosevelt Road. There would be outdoor storage near the rail spur on the
south side of the building. Berms and landscaping would help obscure the view from properties to the
north and east. The utilities brought to the site would be sized for future adjacent development of a ho-
tel and other commercial components elsewhere in the TIF District. According to IDI Logistics repre-
sentatives, TIF revenue may be required to help offset some of the costs associated with site devel-
opment. In return, the City could get infrastructure pulled close to where it could benefit development in
the vicinity of Roosevelt Road.
The concept does not fit the current ORI zoning district and would be better situated in an M, Manufac-
turing District classification. Therefore, a rezoning should be required as part of any approval of this
concept. Staff has concerns about the traffic calculations and the timing of improvements along
Fabyan Parkway and Roosevelt Road. Regardless of any impacts from the Home Depot facility,
Fabyan Parkway will require expansion due largely to the success of the DuPage Business Center and
ROW is required from this property to help accomplish that, which may affect the Home Depot site lay-
out.
The other phase of this project would be led by Monticello Investments, Inc. It would include the long-
awaited hotel, which cannot commence without a signalized intersection on Roosevelt Road (the cur-

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CITY OF WEST CHICAGO
rent plans show the internal drive ending in a cul de sac short of its connection with Roosevelt Road).
Other concepts such as self-storage may be included as a buffering use between the hotel and the dis-
tribution center. The retail component along Roosevelt Road may be led by Hamilton Partners. Staff
has had discussions about linking the hotel/commercial phase of the project more closely with the
Home Depot phase to make sure the City gains more of what has long been desired for the Roosevelt
Road corridor. Staff believes making this link is essential to the acceptability of the new warehouse
proposal and may involve restricting the timing of the TIF reimbursement. In any case, a PUD will likely
be required to coordinate the land use portion of the development.
The packet includes information about IDI Logistics, a perspective drawing, photographs, and site
plans for the full 85 acre development including the hotel and commercial areas, as well as a site plan
for the proposed 55-acre Home Depot site. The site plan includes providing conceptual access for
properties not part of the proposal from the internal service road. A letter of general interest from Ham-
ilton Partners is also included.
Home Depot is looking at a handful of sites in the Chicago area to establish this new ecommerce con-
cept. They are determining the level of interest from the City in having this facility located here. Repre-
sentatives from IDI Logistics will be attending the meeting.
ACTION PROPOSED:
Review and discussion.
COMMITTEE RECOMMENDATION:

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West Chicago Development
May13,2019
30
IDl Logistics
YEARS

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IDI Logistics
30 years of experience
More than 200 MSF pavcencd
and acquired
Unmatched expertise and focus
on-customer service

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Map of Holdings IDI Logistics
WEST REGION
Market office in Los Angeles
22 MSF developed
69 facilities developed and acquired
1.8 MSF land bank
EAST REGION
Market office in Atlanta
69 MSF developed
294 facilities developed and acquired
6.9 MSF land bank
CENTRAL REGION
Market offices in Memphis, Dallas,
Chicago and Chicago
83 MSF developed
282 facilities developed and acquired
4 MSF land bank
40MSF 13MSF 200MSF 6
OPERATING PORTFOLIO DEVELOPMENT LAND DEVELOPMENT HISTORY MARKET OFFICES [EJ

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IDl Logistics
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Overall Site Concept Plan
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Overall Plan
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IDl Logistics
road

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IDl Logistics
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IDI Logistics
Here are the Chicago BDC/FDC Truck Counts:
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Channahon Building A
IDl Logistics

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Channahon Building A
IDl Logistics

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HAMILTON
PARTNERS
HAMILTON PARTNERS. INC.
300 Park Boulevard, Suite 201
ltasea, Ilinois 60143-2636
FAX: 630.250.8521
March 27, 2019
Mr. Jeff Lanaghan
Market Officer
IDI
500 Park Blvd. #750
Itasca, IL 60143
Dear Jeff,
On behalf of Hamilton Partners, I’d like to thank you for presenting our retail group with the
opportunity to review the potential development of the Roosevelt/Fabyan Parkway site in West
Chicago.
Having now had time to further discuss the site’s potential with my partners, we wanted to share
our thoughts. As we all discussed, to say that the current retail sector is challenging would be an
understatement. Mid box and big box development have slowed to a near standstill aside from
the back filling of existing vacated locations at extremely low rents. Suburban ground up has
been relegated primarily to consolidation and municipal subsidy is very often required. There
are a few active sectors that are, not surprisingly, made up of the more internet resistant users
such as gas stations, car washes, fast casual restaurants, hotels and fitness. Banks and Pharmacy
have slowed dramatically, although, we still reach out to them on a consistent basis as they will
reposition and consolidate. Hamilton Partners is currently active in most of these sectors having
previously been focused on grocery anchored developments for Whole Foods, Mariano’s, Sam’s
Club, Costco and Aldi. Of these players, Costco and Sam’s will no longer develop in Illinois and
Mariano’s has not been given the green light for further expansion by Kroger. Aldi is still an
active player and generally seeks 2 acre sites for 21,000sf stores. They are, however, approx. 2
miles away from this location. James Dremonas’ Pete’s concept is still active with a full pipeline
and scheduling now for 2023. Amazon has announced a plan to expand with 45,000sf grocery
stores pushing the more affordable 360 line versus their Whole foods price points but we have
yet to see them initiate through their agents at Cushman & Wakefield.
General market conditions aside, your site plan would appear to offer the potential for retail
development at the planned full access east of the hard corner on Roosevelt. We could envision
outlot users such as car wash, gas and food seeking to capture what we see as “drive bye” traffic
vs “destination” traffic. The traffic counts are healthy but we feel as though the national retailers

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(mid box, big box and grocery) would need convincing to locate just outside the primary West
Chicago and Geneva population bases with Geneva population also bifurcated by the river which
many times serves as a psychological barrier to shopping for east bound consumers.
Additionally, there is little direct population to the south due to Fermi and little to the North
which is primarily industrial. The site is best suited to capture that drive by traffic with
convenience retail as mentioned above. This would likely be comprised of 1- 1.5-acre outlot
demand wherein you might see 2 to 4 outlots and a hotel. Initially, we were excited looking at
the hard corner but have since tempered our enthusiasm after better understanding just how far
away the access point would need to be from the hard corner due to the existing hard medians
and constant speed right turn lane from Fabyan to Roosevelt heading east. We would like to be
clear that our evaluation is based on probability in the market as we see it but it is possible that a
larger user (car dealer, tractor supply) may be identified during the marketing period to surprise
us.
In concluding our meeting, you asked specifically if we would be interested in marketing or
developing retail at this site, and our answer is “Yes”. We do see potential for limited
convenience retail but we have ongoing questions for you related to timing and infrastructure.
Regardless of TIF availability, we are concerned about the ability of any probable retail being
able to justify the cost of infrastructure necessary to deliver “pad ready” with all access and
utilities in place. Retailers are going to want to know definitively that access will be in place and
at what date in time before they go to committee for any final approvals. With everything in
place, we typically expect 18-24 months to market and secure executed leases clear of all lease
contingencies related to pad delivery. If we are to commit our resources and time to the site, we
would look for assurance that the infrastructure costs are covered and that the general
entitlements are in place.
In the event you would be interested in furthering the discussion, we would welcome the
opportunity to sit down and introduce you to the balance of our team which would include Mark
Hamilton and Todd Berlinghof.
Yours Truly,
fre TE eS LA
Paull’ Sheridan ° ;
Partner
Hamilton Partners

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