O’Fallon’s Southview Plaza revitalization plans stalled in committee
Plans to revitalize Southview Plaza with a strip shopping center and two restaurants have stalled in the Community Development Committee, as aldermen seek more information before sending it on to the O’Fallon City Council for action.
At both its Jan. 25 and Feb. 8 meetings, the CDC agreed to table the proposal as they gather more information on drainage, signage and condition of the property before Phase 1, having questions for the public works department and from the developer.
“Their main concern is stormwater and the downstream impacts this site has had over the course of the plaza’s life without any detention,” Community Development Director Justin Randall said.
At the recent CDC meeting, the developer Jim Reisch and the project engineer Katherine Kenefake discussed the drainage situation and the reduction of stormwater that would be generated with the redevelopment.
Randall said the proposal is currently unchanged — the project is for a retail strip center, with a mixture of restaurants — one with alcohol sales and one with drive-thru, retail and services.
Randall explained the petitioner would develop the first phase and would propose an additional outlot along U.S. 50 for a drive-thru and an outlot south for a potential future market/grocery.
Randall said, based on the existing site, which was completely impervious, the development was providing raingardens and underground detention to assist with retrofitting the site with some detention.
He said issues are still unaddressed. Both the committee and council members in attendance want to work with the developer to iron out their concerns before the meeting Monday, Feb. 22.
Alderman Jerry Albrecht expressed concerns over the south entrance to the development on Lincoln and the grade difference between the site and Lincoln causing issues with sight lines.
Reisch indicated that entrance is shared with the office building at the south end of Southview Plaza and that there is little they can do to address the entrance due to the property being split. He said editing the grades could cause water to drain back into the office building.
The proposal had met with mixed reaction from the O’Fallon Planning Commission but moved it forward to CDC, in a 6-3 vote, so aldermen could review it. The development has been recommended by staff, with some conditions.
The council is expected to act on an ordinance later, after some issues are resolved.
Parchman’s point of view
After the meeting, alderman Nathan Parchman explained his concerns on the project.
“Ownership hasn’t changed, and if history repeats itself, we’ll have another run down property 10 years from now as things start to get wear and tear,” he said.
“Also, flooding in O’Fallon has been a major issue over the past several years and we don’t want to allow for a known issue to be ignored when we have the opportunity now to fix it. So we as a committee are exploring the most effective way to mitigate this issue while the property is vacant,” Parchman said. “It’s much more expensive, if not nearly impossible, to try and fix this issue after construction is complete.”
Parchman said everyone he has talked to has not been impressed with the proposal.
“It’s a very similar concept to the last complex and doesn’t really add a wow factor. My job isn’t to determine what a business owner can or can’t build on their property, as long as it meets city requirements, but I do believe this project could have been so much more on this prime piece of real estate in the heart of our city. There’s still much discussion to be had before this will move to the full council,” Parchman said.
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.
Randall said no tenants have been announced for this proposal, but 10 are planned.
Plans for the Southview Plaza development
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 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 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.
More information on development
Randall said the Illinois Department of Transportation and St. Clair County will work with the developer on reconstruction of entrances, traffic circulation and access.
Reisch, a commercial real estate developer with Reisch Haley Properties, told the Planning Commission last month 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.
History of Southview Plaza
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.”
2018 plans
In April 2018, rejuvenating the nearly vacant center took a major step forward when the O’Fallon 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.
Alderman weighs in
Alderman Ross Rosenberg, who was in attendance at CDC, said his comments are a bit of a dichotomy.
“I’m happy that there will be a development there, something that will bring additional — and hopefully ‘local’ — hopping and the associated revenue to the city. At the same time, I feel a bit like the planning commission ... somewhat underwhelmed.,” Rosenberg said.
“I also understand the process for a land owner/developer to construct whatever business they desire, so long as it meets our ordinance and zoning requirements,” he said.
“I am pretty sure that our city staff, and mayor, often times reach out to businesses in an attempt to recruit/entice them to come to our amazing city. However, contrary to what many residents believe, the city doesn’t get to hand-pick, or force, specific businesses to come here,” he said.
The CDC includes aldermen Ray Holden, chair; Todd Roach, vice-chair; Jerry Albrecht, Kevin Hagarty, Nathan Parchman and Tom Vorce.