Suburban building projects show signs of life

When Todd Fishbein, CEO of Northbrook-based Red Seal Homes, looked at the unfinished subdivision on Route 22 and Quentin Road in Lake Zurich, dozens of questions went through his mind.

Where's the housing market at right now? What are the issues here? Where does the bank stand on this property? What will it be like for people already living here? After all, this Coventry Creek Estates project had remained in limbo since the financial backers of Dartmoor Homes went bankrupt in 2009. Now the bank was asking Fishbein to build homes on 27 lots to join 10 homes already finished.

“We've taken on a whole program and retooled the project to bring the price point of the homes down,” said Fishbein, who also has other building projects in Buffalo Grove, Glenview, Naperville and elsewhere. Such home developments, build-outs of incoming retailers, and new construction of industrial buildings are driving local officials to issue more building permits — and boosting much-needed revenue — in many suburbs.

Don't look for the fast-paced, pre-recession construction frenzy just yet. Still, suburban officials are encouraged that the economy is turning around, although slowly, to get such projects going again and put people back to work.

Home remodeling also is rebounding and accounts for much of the construction work. Orren Pickell, owner of Lake Bluff-based Orren Pickell Designers & Builders, said his business used to do 80 percent new construction and 20 percent remodeling projects. Now, remodeling and related projects make up 60 percent of his business.

“Things are picking up now,” Pickell said. “But remodeling is carrying the day.”

Here's what's going on in several towns.

Lake Zurich

Besides Coventry Creek, Lake Zurich had issued 1,345 building permits between May 1, 2010, and April 30, 2011, for new homes, commercial buildings, build-outs and other projects. That's almost as many as the pre-recession days of 2007, said Daniel Peterson, Lake Zurich's building director.

“There's also been a large increase in residential remodeling and home improvement projects,” Peterson said. “Instead of taking vacations, people are improving their homes with additions, finished basements, window replacements and others.”

Schaumburg

In Schaumburg, 9,015 building permits were issued through the fiscal year ending in April, compared to 5,670 the year before. Most are for build-outs of existing retail, office and industrial space, said Matt Frank, the village's economic development coordinator.

Much of the activity involves retailers, including newcomers Chick-Fil-A, Five Below, HHGregg, Ross Dress for Less, Tilted Kilt restaurant and another Walgreens. Gonnella Frozen Products also recently broke ground to expand its Schaumburg plant.

Elk Grove Village

Elk Grove Village has issued 657 building permits so far this year, compared to 601 for the same period last year. The bulk are for kitchen, bathroom and laundry upgrades, as well as minor interior upgrades in commercial and industrial buildings, said Josh Grodzin, director of business development and marketing for Elk Grove Village.

Commercial permits include a new White Castle on Oakton Street; Moran Transportation's extension of truck terminals on Arthur Avenue; the addition of a deli and produce section for Walmart on Meacham Road; and a new gas station on Landmeier Road.

Arlington Heights

Arlington Heights has seen a similar uptick in building permits, said John C. Melaniphy III, business and development coordinator for the village.

Some new retailers include True Value in the former Sears Hardware site at Rand & Dryden Plaza; Goodwill in Surrey Ridge Shopping Center; Smashburger, Caribou Coffee and Jersey Mikes all in the Annex of Arlington Shopping Center's former Lone Star Steakhouse site; and the electronics chain HHGregg in the Annex's former Sports Authority site.

Others in Arlington Heights include three new commercial buildings and a Culver's restaurant at 2020 E. Northwest Highway, and Transitional Care Management at 1200 N. Arlington Heights Road.

In addition, Arlington Crossings is under way with Pulte Homes building 66 townhouses and Red Seal Development building 50 single family homes.

“We are in the process of securing several additional development and redevelopment projects,” said Melaniphy.

Elgin

In Elgin, some projects are promising, like Sears taking about 45,000 square feet of office space and adding 66 jobs, while Swiss tool machine manufacturer Bystronic USA is building its North American headquarters on Airport Road, said Mike O'Kelley, vice president of economic development for Elgin Development Group.

Still, O'Kelley is concerned about losing some businesses because the city has a lot of older buildings. More companies now are seeking modern, more efficient buildings, he said.

Naperville

Naperville has seen a 14 percent increase in permits issued during the first five months of this year compared to the same period a year ago, said Marcie Schatz, director of transportation, engineering and development in Naperville.

New home construction has about doubled, with 41 permits during the first five months of this year, compared to 22 last year. Additions and other work accounted for 217 permits this year compared to 169 last year. However, commercial remodeling and new construction have remained flat, she said.

Still, she's optimistic that will change.

“We are seeing some good signs right now, but the entire economy is going to drive what happens,” she said.