Downtown Development

On Tuesday, November 12, the Village of Northbrook Board of Trustees approved an Economic Incentive and Development Agreement with Hometown Coffee Northbrook, LLC to open a new location at 1290 Shermer Road in Northbrook. This new location will mark Hometown Coffee’s fourth on the north shore, joining locations in Glencoe, Lake Forest, and Winnetka.

Hometown Coffee has a proven track record of success in neighboring communities, and following a thorough review, the Village is confident Hometown Coffee and Juice will be an anchor attraction within the downtown. The project is consistent with village master plans and will draw customers from both within and outside of Northbrook. A capital investment loan of $1.5 Million combined with projected annual sales make the proposed investment and redevelopment critical for the current and future vitality of the downtown. Click here to read the full agreement. 

Secured by sales tax generation from the facility, the incentive agreement provides a $1.5 Million loan with an interest of 6% for a 15-year term, and would be repaid in part through new Village sales tax revenues which will be generated by Hometown Coffee and Juice (a type of sales tax rebate to the business). Based upon the success of this business in Glencoe, Winnetka and Lake Forest, the Village is confident that Hometown will be able to generate new sales tax for the Village which will support the incentive. Additionally, the loan would require a balloon payment directly from Hometown should any amount of the loan principal not be repaid by the new sales tax.

The Village deems the Central Business District as a key economic factor in the future of the community as a whole. It is also evident that the community’s perception of the downtown is inadequate. Data from the 2023 Community Survey found perceptions of the vibrancy of the downtown lower than national benchmarks at 35%. This was the only major community theme measured by the survey that was lower than national benchmarks. The incentives and improvements to the downtown are meant to close this positive perception deficit. 

Established in 2022, the ESC is a team of business and civic leaders focused on revitalizing downtown Northbrook. In May 2024, the ESC proposed strategies to attract new businesses, strengthen the current business community, and create a unique experience for residents and visitors. Key recommendations include public improvements (like streetscapes and parks), business investment programs (such as façade enhancements and upgrades), and increased community engagement. The ESC suggests forming a business association to lead downtown marketing and event planning, deemed essential for energizing the area. Click to learn more about the ESC.

Recommendations put forth by the Economic Strategy Commission, include investments in infrastructure, façade enhancements, and other upgrades. One of these projects is soon to be underway at the 1300 block of Shermer and Meadow Road. This project will focus on streetscape beautification, extend the pedestrian walkways, and make possible year-round outdoor dining at local restaurants. Plans also include a business investment program and community engagement plan that will benefit existing downtown establishments.

Currently businesses meet with the Development and Planning Services Department to understand village development requirements, available sights, to seek input on how likely a given proposal is to gain village approval on a particular site, as well as the opportunity for any grants, loans, abatements and rebates. Businesses that have received different types of incentive packages in the recent past include Highland Baking, Crate & Barrel, Willow Festival, NewMedical, Barilla, and Brookfield Properties among many others. While the Village will continue to work directly with major businesses such as corporate headquarters and the Northbrook Court redevelopment, which has a TIF, the Village is excited to expand its support economic growth and enhance downtown Northbrook with well-defined and transparent business incentive programs. The matter will be referred to the Board's Committee of the Whole and the Economic Strategy Commission prior to formal Board consideration. The first step will be creating a robust program infrastructure, including application procedures, eligibility requirements, funding allocation, and staffing needs. For large incentives, such as the recently approved incentive for Hometown Coffee, the Village plans to evaluate requests on a case-by-case basis due to the significant investment involved. Over the next 3-4 months, Village staff will work closely with the Economic Strategy Commission and stakeholders to create a pilot program that aligns with Northbrook’s unique needs and supports both new and existing businesses. As we progress, we will share updates and program details with the business community and the public, ensuring everyone has the opportunity to participate and benefit from this initiative. 

What are other communities doing in terms of incentives?
The below matrix compares several communities that have business incentive programs. The communities researched in this list includes incentive activities in Highland park, Glenview, Highwood, Libertyville, Barrington, Arlington Heights, and Des Plaines, among others. 

What is the timeline to implement the recommendations of the ESC?
The proposed timeline for implementation of Board approved ESC recommendations are as follows: 

The Village is currently in the final planning stages for two major downtown projects. One project is the Shermer Rd Corridor project that will add an expansive pedestrian path along the Shermer road leading into the downtown. The other project will occur at the 1300 block Shermer and Meadow Road. This project will focus on streetscape beautification, extend the pedestrian walkways, and make possible year-round outdoor dining at local restaurants. The board has also considered implementing a 1% local food and beverage tax. This tax would apply to businesses where food or beverages, including alcohol, are prepared for immediate consumption, such as restaurants and cafes. It would not apply to groceries or packaged liquor for consumption off premises. The Board may consider investing these funds into the downtown in the form of incentives for business recruitment and retention throughout the community, with a focus on restaurants.

What action did the Northbrook Board of Trustees take in regards to the Hometown Coffee Development?
On Tuesday, November 12, the Village of Northbrook Board of Trustees approved an Economic Incentive and Development Agreement with Hometown Coffee Northbrook, LLC to open a new location at 1290 Shermer Road in Northbrook. This new location will mark Hometown Coffee’s fourth on the north shore, joining locations in Glencoe, Lake Forest, and Winnetka.

Why was this incentive package approved?
Hometown Coffee has a proven track record of success in neighboring communities, and following a thorough review, the Village is confident Hometown Coffee and Juice will be an anchor attraction within the downtown. The project is consistent with village master plans and will draw customers from both within and outside of Northbrook. A capital investment loan of $1.5 Million combined with projected annual sales make the proposed investment and redevelopment critical for the current and future vitality of the downtown. Click here to read the full agreement. 

 What will this incentive package cost the Village?
 Secured by sales tax generation from the facility, the incentive agreement provides a $1.5 Million loan with an interest of 6% for a 15-year term, and would be repaid in part through new Village sales tax revenues which will be generated by Hometown Coffee and Juice (a type of sales tax rebate to the business). Based upon the success of this business in Glencoe, Winnetka and Lake Forest, the Village is confident that Hometown will be able to generate new sales tax for the Village which will support the incentive.  Additionally, the loan would require a balloon payment directly from Hometown should any amount of the loan principal not be repaid by the new sales tax.

Why is the Board focusing on the Downtown?
 The Village deems the Central Business District as a key economic factor in the future of the community as a whole. It is also evident that the community’s perception of the downtown is inadequate. Data from the 2023 Community Survey found perceptions of the vibrancy of the downtown lower than national benchmarks at 35%. This was the only major community theme measured by the survey that was lower than national benchmarks. The incentives and improvements to the downtown are meant to close this positive perception deficit. 

What is the Economic Strategy Commission (ESC)?
Established in 2022, the ESC is a team of business and civic leaders focused on revitalizing downtown Northbrook. In May 2024, the ESC proposed strategies to attract new businesses, strengthen the current business community, and create a unique experience for residents and visitors. Key recommendations include public improvements (like streetscapes and parks), business investment programs (such as façade enhancements and upgrades), and increased community engagement. The ESC suggests forming a business association to lead downtown marketing and event planning, deemed essential for energizing the area. Click to learn more about the ESC. 
 
What about existing businesses in the Downtown?
 Recommendations put forth by the Economic Strategy Commission, include investments in infrastructure, façade enhancements, and other upgrades. One of these projects is soon to be underway at the 1300 block of Shermer and Meadow Road. This project will focus on streetscape beautification, extend the pedestrian walkways, and make possible year-round outdoor dining at local restaurants. Plans also include a business investment program and community engagement plan that will benefit existing downtown establishments.

Will other businesses be able to petition the Board for future incentives?
 Currently businesses meet with the Development and Planning Services Department to understand village development requirements, available sights, to seek input on how likely a given proposal is to gain village approval on a particular site, as well as the opportunity for any grants, loans, abatements and rebates. Businesses that have received different types of incentive packages in the recent past include Highland Baking, Crate & Barrel, Willow Festival, NewMedical, Barilla, and Brookfield Properties among many others. While the Village will continue to work directly with major businesses such as corporate headquarters and the Northbrook Court redevelopment, which has a TIF, the Village is excited to expand its support economic growth and enhance downtown Northbrook with well-defined and transparent business incentive programs. The matter will be referred to the Board's Committee of the Whole and the Economic Strategy Commission prior to formal Board consideration. The first step will be creating a robust program infrastructure, including application procedures, eligibility requirements, funding allocation, and staffing needs. For large incentives, such as the recently approved incentive for Hometown Coffee, the Village plans to evaluate requests on a case-by-case basis due to the significant investment involved. Over the next 3-4 months, Village staff will work closely with the Economic Strategy Commission and stakeholders to create a pilot program that aligns with Northbrook’s unique needs and supports both new and existing businesses. As we progress, we will share updates and program details with the business community and the public, ensuring everyone has the opportunity to participate and benefit from this initiative. 

What action did the Northbrook Board of Trustees take in regards to the Hometown Coffee Development?
On Tuesday, November 12, the Village of Northbrook Board of Trustees approved an Economic Incentive and Development Agreement with Hometown Coffee Northbrook, LLC to open a new location at 1290 Shermer Road in Northbrook. This new location will mark Hometown Coffee’s fourth on the north shore, joining locations in Glencoe, Lake Forest, and Winnetka.

Why was this incentive package approved?
Hometown Coffee has a proven track record of success in neighboring communities, and following a thorough review, the Village is confident Hometown Coffee and Juice will be an anchor attraction within the downtown. The project is consistent with village master plans and will draw customers from both within and outside of Northbrook. A capital investment loan of $1.5 Million combined with projected annual sales make the proposed investment and redevelopment critical for the current and future vitality of the downtown. Click here to read the full agreement. 

What will this incentive package cost the Village?
Secured by sales tax generation from the facility, the incentive agreement provides a $1.5 Million loan with an interest of 6% for a 15-year term, and would be repaid in part through new Village sales tax revenues which will be generated by Hometown Coffee and Juice (a type of sales tax rebate to the business). Based upon the success of this business in Glencoe, Winnetka and Lake Forest, the Village is confident that Hometown will be able to generate new sales tax for the Village which will support the incentive.  Additionally, the loan would require a balloon payment directly from Hometown should any amount of the loan principal not be repaid by the new sales tax.

Why is the Board focusing on the Downtown?
The Village deems the Central Business District as a key economic factor in the future of the community as a whole. It is also evident that the community’s perception of the downtown is inadequate. Data from the 2023 Community Survey found perceptions of the vibrancy of the downtown lower than national benchmarks at 35%. This was the only major community theme measured by the survey that was lower than national benchmarks. The incentives and improvements to the downtown are meant to close this positive perception deficit. 

What is the Economic Strategy Commission (ESC)?
Established in 2022, the ESC is a team of business and civic leaders focused on revitalizing downtown Northbrook. In May 2024, the ESC proposed strategies to attract new businesses, strengthen the current business community, and create a unique experience for residents and visitors. Key recommendations include public improvements (like streetscapes and parks), business investment programs (such as façade enhancements and upgrades), and increased community engagement. The ESC suggests forming a business association to lead downtown marketing and event planning, deemed essential for energizing the area. Click to learn more about the ESC. 
 
What about existing businesses in the Downtown?
Recommendations put forth by the Economic Strategy Commission, include investments in infrastructure, façade enhancements, and other upgrades. One of these projects is soon to be underway at the 1300 block of Shermer and Meadow Road. This project will focus on streetscape beautification, extend the pedestrian walkways, and make possible year-round outdoor dining at local restaurants. Plans also include a business investment program and community engagement plan that will benefit existing downtown establishments.

Will other businesses be able to petition the Board for future incentives?
 Currently businesses meet with the Development and Planning Services Department to understand village development requirements, available sights, to seek input on how likely a given proposal is to gain village approval on a particular site, as well as the opportunity for any grants, loans, abatements and rebates. Businesses that have received different types of incentive packages in the recent past include Highland Baking, Crate & Barrel, Willow Festival, NewMedical, Barilla, and Brookfield Properties among many others. While the Village will continue to work directly with major businesses such as corporate headquarters and the Northbrook Court redevelopment, which has a TIF, the Village is excited to expand its support economic growth and enhance downtown Northbrook with well-defined and transparent business incentive programs. The matter will be referred to the Board's Committee of the Whole and the Economic Strategy Commission prior to formal Board consideration. The first step will be creating a robust program infrastructure, including application procedures, eligibility requirements, funding allocation, and staffing needs. For large incentives, such as the recently approved incentive for Hometown Coffee, the Village plans to evaluate requests on a case-by-case basis due to the significant investment involved. Over the next 3-4 months, Village staff will work closely with the Economic Strategy Commission and stakeholders to create a pilot program that aligns with Northbrook’s unique needs and supports both new and existing businesses. As we progress, we will share updates and program details with the business community and the public, ensuring everyone has the opportunity to participate and benefit from this initiative. 

What are other communities doing in terms of incentives?
The below matrix compares several communities that have business incentive programs. The communities researched in this list includes incentive activities in Highland park, Glenview, Highwood, Libertyville, Barrington, Arlington Heights, and Des Plaines, among others. 

What is the timeline to implement the recommendations of the ESC?
The proposed timeline for implementation of Board approved ESC recommendations are as follows: 

What else has the board considered to improve the vibrancy of Northbrook’s downtown area?
The Village is currently in the final planning stages for two major downtown projects. One project is the Shermer Rd Corridor project that will add an expansive pedestrian path along the Shermer road leading into the downtown. The other project will occur at the 1300 block Shermer and Meadow Road. This project will focus on streetscape beautification, extend the pedestrian walkways, and make possible year-round outdoor dining at local restaurants. The board has also considered implementing a 1% local food and beverage tax. This tax would apply to businesses where food or beverages, including alcohol, are prepared for immediate consumption, such as restaurants and cafes. It would not apply to groceries or packaged liquor for consumption off premises. The Board may consider investing these funds into the downtown in the form of incentives for business recruitment and retention throughout the community, with a focus on restaurants.