$159 million redevelopment project at old Lombard seminary in jeopardy? Developer looking at options

Nearly three years ago, a suburban developer laid out an ambitious plan for a former seminary campus next to Lombard's Yorktown Center mall.

Hoffmann Alpha Omega Development Group proposed a Moretti's Italian restaurant with a new golf entertainment venue as the centerpiece of a $159 million project. Hoffmann also envisioned hundreds of apartments, a gas station and a convenience store as part of the seminary redevelopment.

The mixed-use project, however, still hasn't gotten off the ground. The Schaumburg-based development group is looking at their options, including taking on a partner to pursue the original plan, village officials say.

"While they had hoped to move forward, there have been times in recent months where the property has been listed on the open market," Lombard Village Manager Scott Niehaus said. "And I know that as of right now, they've terminated their relationship with their broker, and they're reassessing their plans."

The village board approved zoning entitlements for the redevelopment of the former Northern Baptist Theological Seminary property in January 2021. Lombard trustees that April unanimously agreed to provide up to $27.5 million in tax incentives to the developer over a period as long as 18 years.

The project has "stalled due to forces of the development industry, including interest rates, and the difficulties of getting projects out of the ground right now," Niehaus said.

The seminary moved to Lisle in 2017. The 27.55-acre property is currently owned by Hoffmann 600 Lombard LLC. Lombard is seeking to acquire a 0.7-acre tract of land for a proposed village water tower.

"Regardless of whatever the project is, we had always carved out and planned for the water tower to be there," Niehaus said.

The village is in line to receive a $4 million state grant to help pay for the water tower.

"We need that water tower for a couple of purposes, most notably for our overall water pressure, for fire suppression and also to accommodate the growth that we've seen in that area of town," Niehaus said. "That includes multiple apartment buildings and other planned projects."

That area has been experiencing a burst of development activity. Apartment complexes have sprung up around Yorktown Center. The mall's owner and Chicago-based Synergy Construction Group aim to bring residential buildings and a Main Street-style plaza lined with outward-facing shops to Yorktown.

The seminary campus is among office buildings, an AMC movie theater and Lombard's Westin hotel.

Hoffmann wanted to link a Moretti's sit-down restaurant and a driving range called Golf Social to the hotel via a covered pedestrian walkway. As many as 400 apartments were expected to be built in a future phase of the project.

Reached by text on Tuesday, a representative for the company said a press release should be issued soon.

"The location is important to us because of the relationship to Yorktown," Niehaus said. "It does have some challenges, most notably that it doesn't have direct visibility off either Butterfield Road or 22nd Street."

The site also has a detention pond and wetland, and most of the 27 acres sit behind the surrounding development. Vacant seminary buildings have been torn down. On Tuesday, piles of construction debris were visible on the site.

"Some of the demolition and debris removal is still ongoing," Niehaus said.

Meanwhile, officials are putting together a real estate contract to buy the 0.7-acre outlot from the developer. The anticipated purchase price for the piece of land is $236,377, plus or minus any prorations or credits negotiated into the agreement.

"We still want to move forward with the village water tower while other development issues occur on the property," Lombard Community Development Director William Heniff recently told plan commissioners.

Officials hope the matter could be approved by the village board before the end of the year.

"We've been in regular communication with them," Niehaus said of the developer. "They're fully engaged in the negotiations to sell us the property."

In 2017, the village established a tax increment financing district to help spur redevelopment of the seminary property. The TIF district also encompasses part of Yorktown.