Fox Lake pursuing entertainment district in approving cannabis operation permit – Chicago Tribune

The Fox Lake Village Board unanimously approved the opening of a cannabis operation with a dispensary, on-site consumption and an infuser for cannabis products Tuesday night.

The proposal includes construction of a 14,400-square-foot building and development of an adjacent 19 acres into an entertainment district.

The board followed the recommendation of its planning and zoning commission in issuing a special use permit and zoning change to facilitate the project at 80 South Route 12. The business is expected to be up and running within six months after a dispensary license is issued by the state, which is expected in the next 60 to 90 days.

The petitioner, FLBC LLC, is also the contract purchaser of 19 acres abutting the property, known as “Sayles’ Hill.” Although the village had targeted the property for several failed attempts at a hotel, its Pistakee Lake waterfront access and planned remediation work carries renewed commercial opportunities.

“Amenities have not been finalized,” Village Administrator Deb Waszak said. “They … support a live, work, play, stay environment. So (that means) housing, lodging, restaurants and venues that host music and other types of entertainment.”

The initial plan is for a building with space for three tenants, including the dispensary with a consumption lounge, a craft brewery with an attached outdoor terrace, and a restaurant at the 90 South Route 12 location.

“The village and the developer partnered with C.H. Johnson Consulting of Chicago to complete a market feasibility study for a mixed-use waterfront development,” said Donovan Day, the village’s community and economic development director.

While traffic and safety concerns will be monitored, the developer will also benefit from tax-increment financing district infrastructure expenditures by the village. “Those revenues were expended, putting the sidewalk along Route 12 … and to dredge the channel. The project also included shoreline stabilization,” Day said.

Incentives are reimbursable, he added, and the cannabis operator can enter into a redevelopment agreement outlining a site-generated schedule based on TIF revenues.

A TIF district effectively freezes a property’s assessed valuation for up to 23 years, and the Sayles’ site holds the designation until 2038. Any funds collected above the stagnant rate are placed in a fund for use on improvements to the property.

“The Village Board agreed that a portion of the revenue generated will go toward infrastructure, with street improvements as the first priority,” Day said. “Additional support for the police department is also a priority.”