Glenview said Friday it will annex Allstate’s corporate campus under an agreement with Prospect Heights that could ease a developer’s path to converting the property into a logistics hub.
Allstate has committed to sell the site at 2775 Sanders Road for $232 million. The 232-acre site has a Northbrook mailing address but most of it is in unincorporated Cook County.
Glenview and Prospect Heights were headed into a tug of war over annexation rights involving the property and who would control its redevelopment. The agreement between the towns averts that, giving Glenview control of the site. In turn, Glenview will give Prospect Heights a share of the project’s tax revenue.
“We’re pleased to have come to an agreement on this quickly and in the best interest of both communities,” Glenview Village President Mike Jenny said in a news release from both towns. “Keeping the entire development in one municipality will help ensure an efficient review and proper oversight of the land.”
The agreement calls for Glenview to pay Prospect Heights 18% of the property and sales taxes the development generates each year. The site’s buyer, Reno, Nevada-based Dermody Properties, has proposed constructing up to 3.2 million square feet of warehouse space, replacing the office buildings. The sale is contingent on local zoning approval.
Glenview also would send Prospect Heights two payments of undisclosed amounts before the property is redeveloped.
Officials said the project could generate $12 million in tax revenue over the next 10 years. Glenview said it will start its zoning review on June 22.
“Good government is about working together to do what’s best for residents, business owners and stakeholders,” said Prospect Heights Acting Mayor Matt Dolick. “Both communities have a great deal to gain from this agreement, and we look forward to working with the Village and the property owners as the development moves forward.”
Prospect Heights had talked about annexing most of the Allstate site. Glenview officials argued that doing so would violate a 1997 pact between the two towns governing property along the Sanders and Milwaukee Avenue corridors.
A spokeswoman for Dermody declined to comment on the annexation deal.
In selling the property, Allstate has said the trend toward remote work means it no longer needs a roomy, landscaped headquarters. The company has purchased a 10-story building downtown at 29 N. Wacker Drive, calling it a potential headquarters.
