O’Fallon Planning Commission considering new development option for Southview Plaza

Plans to revitalize Southview Plaza with a strip shopping center and two restaurants were met with a mixed reaction from the O’Fallon Planning Commission, but the proposed development is advancing through city channels, with staff recommendations.

After a 6-3 vote at the Jan. 12 meeting, the new Southview Plaza plan is moving on to the Community Development Committee meeting Monday, Jan. 25. After that, it could be sent to the city council for first reading Monday, Feb. 1.

Justin Randall, director of community development, said no tenants have been announced for this proposal, but 10 are planned.

The original Southview Plaza was built in 1959 at the corner of U.S. 50 and South Lincoln Avenue, and was a major hub of activity during its 1960s-1990s heyday. In 2018, it was demolished in phases, and the last tenant — Papa John’s Pizza — moved to Regency Park.

Moving forward, the nearly 5-acre property will be divided into three ground lease lots. The initial phase includes a 15,120 square foot retail building on the center lot. It will face west and have frontage on South Lincoln.

The two remaining lots — north and south — would include retail, hospitality and service type uses. A drive-thru restaurant is planned for the north lot and a market with ancillary alcohol sales will be on the south lot. The center lot would have a restaurant with an outdoor patio and alcohol sales with on-site consumption.

Applicant Yong B. Kim of JRJ Family Limited Partnership is requesting the property be rezoned to Planned Community Business District.

Randall said the staff recommended approval but set several conditions for Phase 1. The city wants removal of all gravel associated with the demolition of the original Southview Plaza and either grass or landscaping added instead. Rain gardens and underground detention facilities must be maintained.

Randall said the Illinois Department of Transportation and St. Clair County will work with the developer on reconstruction of entrances, traffic circulation and access.

Larry Sewell, chairman of the Planning Commission, said he was “underwhelmed.”

“There’s still too much concrete there. I know it’s easy to spend someone else’s money, but we have been waiting for this opportunity for a while, and we have to see if we can live with this, make sure we got it right,” Sewell said.

Jim Reisch, a commercial real estate developer with Reisch Haley Properties, said the mixed-use development is the best way to make the project happen.

“We have explored every avenue we could explore,” he said. “We have been working on this for three years.”

Reisch said they wanted to make sure businesses would be still viable for years to come. He said retail is an ever-changing market and cited some previous plans no longer on the table.

Reisch said the developers had the best of intentions.

“It’s going to be a good-looking building,” he said.

Citing its plum location, commissioners expressed opinions.

Input from planning commission members

Planning Commission Vice Chair Ray Rohr said it was “a prized piece of real estate.”

Planning Commission Secretary Al Keeler said the project should enhance the city — “be proud of it for years to come.”

Planning Commission member Ryan Kemper said he was torn and considered it a “missed opportunity.”

“Is this the best compromise we can get?” he said.

Kemper, along with commissioners Debbie Arell-Martinez and Patricia Cavins, voted against the project, while Sewell, Rohr, Keeler, Casey Scharven, Bob Kueker and Joe Rogers approved it moving forward.

Sewell said moving it to the CDC will provide another feedback opportunity.

“There will be more of an opportunity to get it right,” he said.

Storied history in O’Fallon

During its 61-year history, the Southview Plaza shopping center was home to Keck’s Tomboy grocery store, Ben Franklin, Dollar General, several Hallmark shops, Bollmeier Hobby Shop, Movie Mania video rental and a few chain stores — now defunct in the U.S. — including P.N. Hirsch department store and Western Auto.

Mom-and-pop restaurants — like the Barrel Room, Schiappa’s and House of Hunan — plus clothing stores, beauty and barber shops, dry cleaners, hardware stores and gift shops were tenants. St. Clair Travel, insurance agencies and other businesses also operated there.

The center had been in decline since the 1990s, with residents complaining and calling it an “eyesore.”

What happened in 2018?

In April 2018, rejuvenating the nearly vacant center took a major step forward when the city council approved a TIF redevelopment agreement with Dover Frontier, the plaza owner, who planned to demolish the buildings.

Afterwards, environmental remediation was necessary to make the property ready for development. No one had been willing to purchase it because of potential problems with soil contamination and uncertainty about costs.

“People have been wanting something done with Southview for years,” Mayor Herb Roach had said. “The then-Community Development Director said people had been excited to see what would take its place.”

This story was originally published January 19, 2021 at 12:16 PM.