Legal battle between Jewel, Hoffman over

A 2004 lawsuit filed by the owners of a Hoffman Estates strip mall against the village challenging the validity of a TIF district appears on the verge of settlement.

Hoffman Estates Mayor William McLeod couldn't say when an agreement would be formalized between the village and the business owners at the Hoffman Plaza shopping center, but said the lawsuit would be dropped.

With the lawsuit no longer hindering plans, a TIF district could use frozen property tax money to redevelop the property for a larger retail development. The typical life of a TIF district is 23 years.

"This will be a boon for the west side," McLeod said.

The lawsuit, filed in February 2004, argued the village was unlawfully creating a tax increment financing district to redevelop the land at Golf and Higgins roads. The owners argued the village wanted to kick them out by unrightfully condemning the property as blighted.

Village attorney Art Janura said the settlement could be announced in early January, as the language of the proposal still is being hammered out.

Officials from one of the tenants, the Jewel-Osco at 1069 N. Roselle Road, confirmed Thursday that the store will undergo major renovations.

Village officials say $5.5 million from the TIF district will be used toward Jewel improvements. There was debate on how much money from the TIF district would go to Jewel, which had stymied the agreement to drop the lawsuit.

The remodeling is scheduled to start in April, Jewel spokeswoman Juanita Kocanda said. It would take six to eight months for the store to be completed, and it would stay open for the duration of the construction, she said. September is when a grand reopening could occur.

"There will be emphasis on fresh; the perimeter of the store will have a lot of fresh fruit," Kocanda said.

The store also will have a new pharmacy counter.

Former village attorney Richard Williams was working toward a deal before his September retirement. He said it was one of his goals last year to reach a settlement.

"This was a major goal of the village, and with SuperValu's cooperation, the downtown renovation will be a win-win for all parties," Williams wrote via e-mail. "I worked very hard on this issue and am pleased the new board is about to close the deal."

The plaza was the first shopping center in the village, McLeod said.