New Walmart proposed for Skokie’s east end

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Vacant buildings on the 3600 block of Touhy Avenue have been demolished to make way for a new shopping center on the property. A Walmart has been proposed as the anchor store for the center. | Mike Isaacs~Sun-Times Media

Updated: March 24, 2012 8:01AM

A prototype Walmart is part of plans for a new shopping center on the southeast end of Touhy Avenue, once home to industrial buildings that only recently were demolished.

Plans for the shopping center, called Touhy Marketplace at 3600 W. Touhy Ave., is scheduled to go before the Skokie Plan Commission at its March 15 meeting. Clark Street Development is seeking approval of seven measures that are needed for the project to move forward.

Peter Eisenberg of Clark Street Development, one of the principals involved in a limited liability company that owns the property, said it’s premature to comment since the Plan Commission has not yet heard the case.

“What I can say is that we’re excited about the potential of an impactful development at that property,” he said.

But Skokie Planning Supervisor Steve Marciani confirmed that the proposal has been submitted with a main anchor Walmart occupying 150,000 square feet and facing west.

The Walmart, he said, is described as a “prototype store” and could be smaller than more typical Walmart stores because this one would not have a garden center or an auto repair section. A more standard Walmart operates west of Skokie on Touhy in Niles.

Under the plans, a line of additional retail stores for the shopping center would face toward Touhy Avenue, Marciani said. A medical facility is also part of the plans.

None of the Touhy Avenue retail stores are yet known, but the plans also call for two banks on the property. One of the banks, which is unnamed, would have three drive-through lanes and the other, a Chase bank, would have four drive-through lanes.

Marciani said the developer has worked with village staff on preliminary plans, but no recommendations have yet been made.

Like many communities, the village wants to transform some of its shrinking industrial base to retail, and Marciani said he believes a major retailer like Walmart moves that goal forward.

This will not be the first time the Plan Commission has considered a major development for the site, which sits across the street from Lowe’s Home Improvement Store in Lincolnwood.

The Plan Commission first rejected a proposal about four years ago from owner Reliance Lane Investors for a shopping center that was to include Garden Fresh Market and XSport Fitness among other retailers.

Village Staff recommended traffic and layout changes initially not included in the plan, which was tweaked to gain the commission’s support the second time around. The Village Board then approved more than a dozen measures associated with the project.

It was to be called Touhy Centre, and although plans called for breaking ground in 2009, that never happened because the financing fell through, said Corporation Counsel Patrick Hanley. That resulted in foreclosure by the bank against the property owner.

The property had been tied up in foreclosure proceedings for several years before it finally changed hands. Unlike most projects that fall through, this one went a long way in the development process before the plug was pulled.

Reliance Lane Investors had received “commitments” for 75 percent of the retail space, including a furniture store, a bookstore, a bank, a coffee shop and restaurants before the deal died.

Eight special use permits for five chain eateries, three of them with outdoor dining, were ultimately approved. The eateries were to include a small restaurant inside Garden Fresh Market, Sweet Tomatoes, Chipotle Mexican Grill with outdoor dining, Potbelly Sandwich Works with outdoor dining and Starbucks with outdoor dining.

Whether any of the original proposed businesses will sign with the new project is still unknown.

The site is 14.3 acres and bounded by Chase Avenue on the north, Touhy on the south, St. Louis Avenue on the east and Lawndale Avenue on the west.

The applicant is requesting a zoning change from M-3 (light manufacturing) to B-2 (commercial). That change was approved by the Village Board for the first project proposal but must now be considered again.

The Village Board must also sign off on the planned unit development, the drive-through lanes for the banks, subdividing the property, a special use permit allowing Walmart to sell alcohol and use of temporary outdoor storage.