A potential 90-acre mixed-use real estate development in North Chicago, with a variety of housing as well as commercial space on the land of the shuttered Halsey Village at Naval Station Great Lakes, has taken a concrete step forward.
Once dubbed “Zombie Village” by U.S. Sen. Tammy Duckworth, D-Hoffman Estates, the privately managed 351-house project for U.S. Navy personnel became unhabitable. The Navy took control of it in December with plans to demolish the houses and remediate the land.
With significant work ahead, U.S. Navy Capt. Steve Yargosz, the commanding officer at Great Lakes, found a way to partner with the city of North Chicago and Lake County to remove the houses and deal with potential contamination of the land.
Yargosz said that normally, projects of this magnitude handled through “standard military channels” can take two to three years before they can start. The partnership will allow it to happen quicker, with the federal government paying as North Chicago and Lake County contract and oversee the work.
“We are cutting that timeline in half,” Yargosz said. “Because of this partnership, the demolition will start very soon. The story of how we got here is a perfect example of what happens when leaders truly collaborate.”
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North Chicago and the U.S. Navy signed a $50 million Intergovernmental Service Agreement (IGSA) Monday in North Chicago to finance environmental remediation of the property. The county entered into an IGSA with the Navy in August to demolish the houses.
“Using an IGSA for environmental remediation is the very first of its kind for the Navy,” Yargosz said.
Duckworth said in an interview Thursday that the cooperation between the Navy, North Chicago and Lake County is an important step because the interests of all three are intertwined. Sailors and their families spend time in the community, benefiting everyone involved.
“It’s great the county and city are involved as we put 20 years of neglect behind us,” Duckworth said. “Great Lakes does not live in isolation of the community. Every enlisted sailor in the Navy spends time at the base.”
For more than a century, the fortunes of North Chicago and Naval Station Great Lakes were intertwined. Rockingham said the ISGA marks a new phase of the relationship between the military and the city.
“This first-of-its-kind partnership reflects a shared willingness to think differently, embrace innovation, and remove barriers that too often slow progress,” Rockingham said. “We are transforming a long-vacant property into an opportunity for future growth and continued collaboration.”
Lake County Board Chair Sandy Hart said she has pushed for a resolution to the conditions at Halsey Village for a long time. It is a “challenge that has gone unresolved for far too long.” While she sees potential, she feels pain for the conditions members of the military had to endure.
“There isn’t another neighborhood in Lake County that has experienced this level of deterioration,” Hart said. “The conditions here have been unacceptable, and our military families, who once lived here, deserved better”
U.S. Rep. Brad Schneider, D-Highland Park, has actively worked with Duckworth and local officials to revitalize Halsey Village. He said in an email that the collaboration of the city, county and Navy accelerated progress toward quality housing for sailors and the property’s revitalization.
“I and my team were glad to celebrate the important groundbreaking alongside the many leaders who have championed this important vision for so long,” Schneider, who was in Washington and unable to attend, said in the email. “I look forward to continuing to work with our partners in this effort”
Both Rockingham and Hart hope to see the land developed to provide a mix of different types of housing. Some will be affordable units for veterans and other residents. They foresee family homes and commercial space.
“These 90 acres are an open canvas,” Rockingham said. “It’s an opportunity to truly add something to our city to help us grow.”
“I see a wonderful neighborhood with successful businesses benefiting the people of Lake County,” Hart added.
Once the demolition and remediation are complete, Yargosz said the Navy will determine whether there is still a military use for the land. If there is no longer a need for the vacant 90 acres, it can be leased or sold for “consideration in kind.”
“Rather than exchange money, the city of North Chicago might do roadwork for the Navy or provide some other service,” Yargosz said.
Whether the land is rented to North Chicago on a long-term ground lease or deeded to the city, Rockingham said the city wants title to the real estate so it can provide property tax revenue. Without title to the land, there are no property tax dollars.
Besides adding to the city’s revenue stream, a portion of the real estate taxes from the property will benefit the county, North Chicago School District 187 and the Foss Park District. The naval base is exempt from property taxes as a governmental entity.
Duckworth said there are benefits for both the military and the community should the land become part of North Chicago, with additional tax money going to schools that educate military children or a library where people can borrow books.
“It’s all good for the Navy. Navy children go to the schools there, and the taxes will benefit them. There will be retail businesses where the sailors can walk,” Duckworth said. “There will be affordable housing for vets who are close to Lovell for their care,” she added, referring to the James. A. Lovell Federal Health Care Center.
Since the extent of the environmental remediation work will not be known until it is undertaken, Yargosz said the precise cost is uncertain. It could be as much as $50 million. Phase One of the demolition effort will cost $10 million, and the second portion is for $30 million.
Hart said after the groundbreaking she hopes the demolition of the 351 houses will be done by the end of the year.
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Already dealing with the U.S. Environmental Protection Agency (EPA) and the Illinois Environmental Protection Agency (IEPA) on the remediation of the 40-acre Sheridan Crossing property, Rockingham said the city is ready to oversee the job at Halsey Village.
“My hope is we can work with the EPA and the IEPA to quickly remediate this site because it is a government site,” Rockingham said. “We have been working with the IEPA (on Sheridan Crossing), and they know our staff.”