Pending sale of Village land would lead to condo/retail development in Kenilworth

Kenilworth may have found a developer for its 604 Green Bay Road property, one that village officials say would dovetail with their efforts to bring new commercial development into the village’s business corridor. 

And because developer Daniel Michael’s Arya Capital Inc. was willing to pare down the density of its proposal to meet village zoning constraints, the board was willing to accept a $650,000 sales price, Village Manager Patrick Brennan said on March 13. That is $100,000 lower than the asking price when the property went on the market in January, 2023. 

“The reason the village is willing to accept less is because (Michael and Arya Capital) is willing to cut down the density of what he offered,” Brennan said.

The developer reportedly wants to build a mixed-use building featuring up to 10 high-end condominiums and ground floor retail space on the property. That proposal was among a small number of purchase offers Kenilworth received, Brennan said.

Village trustees will consider an agreement defining sale terms for the 5,700-square-foot lot at their meeting on Monday, March 18. If terms meet with the board’s approval, Arya Capital would be one step closer to a final sale.

While the village could have approved the sale without officially setting sale terms, “the board wants to make sure the project meets our vision. Setting terms gives us extra control,” Brennan said.

The negotiated terms include approximately 3,700 feet of retail space, nine or 10 owner-occupied dwelling units, and approximately 15 parking spaces. The agreement also allows Kenilworth to be involved in selecting commercial tenants. In addition, Arya Capital must close on the purchase of a nearby parcel of land. 

The sale is expected to close in 2024 or early 2025, Brennan said in a report to the Village Board.

Arya Capital made its initial proposal shortly after the lot went on the market, he said; since then, the village has worked with Michael to ensure his project would meet village zoning requirements, including height limitations. The village code allows buildings of 35 feet in height in the business corridor. That number could grow to 40 feet if the village approved it as a special use, Brennan said.

Village President Cecily Kaz said the company’s offer best reflected Kenilworth’s goals for the property, adding, “We appreciate their commitment to a shared vision to create something special for our residents.”

The lot lies within Kenlworth’s tax increment financing district, and the sale would not occur until after the proposal goes through Kenilworth’s planned unit development process. That process will include a series of public meetings. According to the release, agreement on the sale terms is necessary before the final transaction. 

Kenilworth bought the 604 Green Bay property in 2016, in an attempt to improve the three-way intersection of Green Bay,  Sterling and Roger Road. It later removed Sterling Road from the intersection, and in 2022 it allowed AT&T to erect a temporary cell tower there. 

At the time the property hit the market, Brennan said Kenilworth wanted offers from developers whose proposals aligned with the village’s vision for its Green Bay Road business district. That vision is part of the village’s 2008 comprehensive plan, adopted in 2022 as a revision to the plan. The revision describes a pedestrian-friendly district with a mix of dining, shopping and retail services, as well as “appropriately-sized” mixed-use properties. 

The developer could not be reached immediately for comment.