125-Acre DeKalb Vacant Site Gets Initial Zoning Support for Mixed Development

A 125-acre vacant parcel north of a new Goodyear facility in DeKalb received unanimous initial support from the city's Planning and Zoning Commission on Monday. The site, located at the southeast corner of Peace Road and Route 38 and the southwest corner of Route 38 and Webster Road, has sat empty for years. Shodeen Group LLC presented three distinct development scenarios to the board, seeking to make the land attractive to various end users.

The primary goal of the proposal is to spread the costs of public improvements, specifically road widening, across a larger area. David Patzelt of Shodeen Group explained that industrial uses qualify for state economic incentives that commercial or residential projects do not. These incentives can help offset the multi-million-dollar costs required by the Illinois Department of Transportation for widening Route 38 and Peace Road. Patzelt noted that these road improvements were a primary obstacle when the project was first considered in previous years.

Shodeen intends to annex and rezone approximately 61 acres at the southwest corner of Route 38 and Webster Road to the Planned Development Industrial district. The company also seeks to amend the 2008 annexation agreement for the adjacent 64-acre DeKalb Commons site. Patzelt stated the goal is to keep the existing zoning on the westerly half flexible so that industrial uses from the easterly half could spread across if a suitable user emerges. This flexibility is designed to make the property more marketable regardless of the final use.

City documents outline three potential outcomes for the development. One scenario involves a mix of commercial, multifamily, and industrial uses. A second option places commercial development at the southeast corner of Peace Road and Route 38, with industrial uses taking up the remainder of the site. The third concept envisions industrial uses throughout the entire 125-acre tract. No specific end users have been identified for the land at this time, and the plans remain conceptual.

Commissioner Jerry Wright asked why the project did not move forward when it was initially approved. Patzelt cited economic infeasibility driven by the high cost of required road widenings. He emphasized that spreading these costs over a larger acreage that can accommodate industrial tenants is the key to making the project viable. The state of Illinois provides economic dollars specifically for bringing industrial users in to fund public improvements, a benefit unavailable to retail or hotel developers.

City staff raised several conditions for their support. City Planner Dan Olson noted a proposal to remove language requiring apartment complex owners to obtain disclosure statements from tenants. Under the original 2008 agreement, tenants had to acknowledge living near a major roadway, an airport, and planned industrial developments. The amended agreement also lowers the commercial occupancy threshold for multifamily development from 75 percent to 50 percent. These changes are part of the conditions for staff to back the plan.

Commission members Thomas Fellabaum and Brian Scholle were absent from the Monday meeting. Chair Bill McMahon expressed support for the pitched concepts. "To me, it sounds like an exciting plan," McMahon said. "That parcel's been empty for a long time, and I'd love to see investment over there. And I think that this does give you all the options there. So, I don't see any problem with that."

The commission's vote is an initial step in the process. City staff expect to review Shodeen's plans in the future for preliminary and final development plan consideration. The site remains vacant while the company works to attract potential users who can utilize the available state incentives.

Patzelt stated that the company continues to see development potential within the city of DeKalb at this specific intersection. The flexibility offered in the zoning proposal allows the property to adapt to market conditions, ensuring that the land can be put to use whether for industrial, commercial, or residential purposes.