Potential Raised Median On Dundee Could Hurt Businesses

Palatine officials are opposed to a proposal by the state to install a raised median on Dundee Road between Rand Road and Route 53 that would limit access to businesses.

The potential median was discussed in a report during Monday’s Village Council meeting on some of the challenges that the Rand and Dundee Road commercial corridors are facing. The Illinois Department of Transportation (IDOT) has jurisdiction over the area and has proposed the median. If the proposal were to move forward, businesses on the north and south sides of Dundee Road could be seriously affected.

“We are very concerned about what this proposal would do as far as cutting off access to businesses up and down Dundee,” said Mike Jacobs, deputy village manager.

Several years ago, Village Manager Reid Ottesen said he expressed interest in a traffic light at the Dundee Road entrance into , 1555 N. Rand Rd. But after consulting with IDOT, what started out as a $500,000 project to improve traffic and safety turned into a more than $2 million undertaking that included the required installation of medians.

“The village council at that time decided not to pursue the project because the village would have borne the entire cost-and back then as it would now, access would be severely limiting to our businesses,” Ottesen said.

The only breaks in the median would be at Baldwin and at the Wal-Mart entrance on Dundee Road.

The owner of Sonic, 1245 E. Dundee Rd., came before the council and said his business is underperforming, and he attributes that in part to the lack of a traffic light at the entrance.

Ottesen asked the village council to consider approving a resolution strongly opposing the IDOT proposal, citing that it would decrease revenues coming from sales tax revenue and hurt local businesses.

Village officials also discussed ways to encourage new businesses to locate in the area. Jacobs said an effort has been made to promote commercial and retail growth, stating Palatine was one of 36 villages to attend a business trade show to market the village.

One possible selling point for redevelopment in the area is that three of Palatine’s Tax Increment Financing (TIF) districts are within the Rand and Dundee Road corridors. The property tax revenue within a TIF district is frozen; increased property tax revenue from development goes into a TIF fund that can be used for various public improvements within the district.

However, village staff said one issue that needs to be addressed is inconsistent zoning and land use.

“Regarding land use compatibility, in some areas there are single family homes across the street from commercial or retail locations with no buffer,” Jacobs said. “This makes it very difficult for homeowners to gain access into their homes from the road.”

Other lots are oddly shaped or have shallow lot depths that for future development to occur would require consolidation of properties.

As far as traffic, both corridors are the busiest in the village averaging 35,000 vehicles per day, which Ottesen said is a reflection of the thriving business in the area. Eighteen of the village’s top 25 tax generating businesses are located either on Rand or Dundee Roads, which represents 42 percent of the village’s total tax revenues.

Ottesen said the most significant issue now is the IDOT proposal.

“The village has to be proactive, development needs to be looked at for sales tax revenues to take the pressure off of property taxes,” Ottesen said. “Now is the time to reach out to our representatives, we want to work with IDOT to make this a safe and viable area.”