The new owners of the former BP Amoco property are opposed to a proposed rule change that would require Naperville City Council approval of warehouses and storage facilities before they could be built on land zoned for office, research or light industrial.
Scott Day, an attorney representing INEOS US Chemicals, urged the Planning and Zoning Commission this week to reject the proposal, arguing it will limit how the company markets the sale of the 176-acre property north of Interstate 88. They have received interest from state-of-the-art industrial warehouse developers who may be put off by the added level of city approval needed, he said.
The rule change would affect properties located in Naperville’s I-88 tech and research corridor.
Naperville officials who support the zoning amendment say the extra layer of approval will prevent the corridor from being filled with warehouse and distribution centers, which don’t generate a lot of high-paying jobs or taxes for the city.
According to Day, there is no interest in the construction or redevelopment of office or research space along I-88 because it is oversaturated with vacancies.
Requiring the extra approval for a warehouse could make the difference between a property that sells and one that is passed over in favor of a site that does not require that entitlement process, he said.
The commission unanimously recommended the Naperville City Council approve the amended rules, a move that has the support of Mayor Steve Chirico and the Naperville Development Partnership.
At a November council meeting, Chirico said he and the partnership have concerns that warehouses and/or distribution and trucking centers could be built in the corridor without some type of approval process in place.
Partnership President Christine Jefferies said there’s no question that a warehouse development can be lucrative for land sellers but that doesn’t make it beneficial for Naperville.
Not only does the truck traffic wear out roadways, but the city collects far less in property taxes from warehouses and distribution than from other business uses, Jeffries said.
“We don’t want to be the Joliet Arsenal. We don’t want to be I-55 corridor,” she said.
Interstate 55 from Bolingbrook through the Joliet area has attracted a lot of warehouse and distribution center developments because of its proximity to the CenterPoint Intermodal Center, a massive train/truck loading facility built on the former Joliet Arsenal property.
Jefferies said she’s confident that the character and vibrancy of Naperville’s tech and research corridor will remain strong.
The addition of Hub 1415 (former Tellabs), Calamos’ City Gate Centre and The Shuman, (former OfficeMax headquarters) are just a few of the new or renovated developments that demonstrate the continued relevance of the corridor, she said.
“I don’t think Naperville needs to throw in the towel,” she said.
The Ogden Avenue corridor, Jefferies said, is a good example of where added restrictive zoning has worked by controlling development amidst a proliferation of requests for self-storage facilities and gas stations.
Now the area is home to Naperville’s second Costco store, which opened in the fall, and a second Amazon Fresh grocery store, which is nearing completion.
Jefferies said understands some warehouse development is likely, but amended zoning rules will let the council can decide where it is appropriate.
INEOS acquired the Naperville BP property on Warrenville Road in January 2021 as part of a $5 billion deal that included four other sites in North/South America, two in Europe and eight in Asia.
Ajaykumar Gami, who serves on the board of INEOS, said the decision was made to sell the Naperville site, and it was listed in November with commercial real estate services firm CBRE.
The property contains one million square feet of building space, according to CBRE.
Day said buildings on the property are antiquated enough that the parcel is ready for full demolition and complete redevelopment.
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