Note: This is part one of a two-part series. The second story focuses on comments from community members, bidders and village trustees.
Homewood trustees voted unanimously Tuesday, May 27, to invite Caton Commercial Real Estate Group and Granite Realty Partners to purchase and redevelop Park West Plaza at 3003-3025 W. 183rd St. The shopping strip currently is home to the Great American Bagel shop, Golden Needle Alterations and Greg Hunt State Farm Agency.
The board chose Caton/Granite from among three proposals. Other proposals were from Rabid Ground LLC and VMB Ventures.
The issue drew a large crowd of supporters for the Rabid Ground bid, all patrons of Rabid Brewery of Homewood. It was the third consecutive board meeting at which Rabid Brewery patrons spoke in support of Rabid Ground’s bid.
The property was acquired by the village through the Cook County No Cash Bid program in December 2023. In February 2024, the village entered into a letter of intent with Raiye Rosado and Tobias Cichon of Rabid Ground LLC. They explored the possibility of developing Rabid Public House, a restaurant and bar that would expand their current craft brewing establishment on Bretz Drive.
Rabid Ground submitted the first bid for purchasing and redeveloping the property. The property is part of the 183rd West TIF District. In order to sell the property to a developer for a nominal amount, the village was required by law to advertise for alternate bids.
Like Rabid Ground, VMB Ventures also has a business in Homewood, the recently redeveloped Shell gas station at Harwood Avenue and 183rd Street.
The decision came down to the numbers, experience and resources, according to trustees. Caton/Granite scored highest on three of the six criteria used by a village staff team that assessed the three bids.
Economic and Community Development Director Angela Mesaros presented a brief overview of each bid.
Rabid Ground proposes a restaurant that offers beverages and Puerto Rican-influenced food at the Park West Plaza location while continuing craft beer production at the brewery on Bretz Drive.
VMB Ventures plans to reduce the number of units in the plaza from the current nine to seven storefronts. The plan calls for a Middle Eastern-themed coffee shop with video gaming, and possibly a Boba tea shop, a Mediterranean restaurant and a dermatologist office.
Caton/Granite did not offer specific plans for uses but would focus on improvements to the property, including repairs, replaced signage and possibly a drive through to the business center on the west end for better access.
Mesaros then presented the staff analysis of the bids, going over each criterion and the ranking of each bidder. She noted that the process and criteria were the same as were used in selecting from among three bidders for the redevelopment of 2020 Ridge Road in 2024. That is being developed as a Mongolian barbecue restaurant.
Responds to community needs
Staff ranked Rabid Ground first, VMB Ventures second and Caton/Granite third for community needs based on input staff receives regularly from residents.
“One of the things is a third space, which is defined as a public neutral gathering space that is distinct from home and work,” she said. “Both Rabid and VMB offer third spaces in the (VMB) coffee shop and in Rabid Public House. The village has received many emails, public comments during recent meetings indicating that Rabid Brewing has a dedicated following within the community in the region, and that they do provide that third space. Caton has not determined uses, but has expressed a commitment to assist local businesses with tenant improvements.”
Supports suitable and successful uses
Staff ranked VMB Ventures first, Rabid Ground second and Caton third for suitable and successful uses.
“We were really looking for that highest and best use for the property. This means that the use will positively affect the immediate area and the community as a whole,” Mesaros said.
VMB was ranked highest because staff concluded its planned uses, which include the current tenants plus a coffee shop and possible Mediterranean restaurant, would have the least impact on the surrounding neighborhood and on municipal resources. Staff was concerned that events held at Rabid Public House might impact residences just south of the establishment.
Caton/Granite was listed third because its proposal does not include specific uses other than the current tenants.
Ensures sustainable commercial development
Staff ranked Caton/Granite first, VMB Ventures second and Rabid Ground third for sustainable commercial development.
The purpose of this criterion was to assess “experience in commercial real estate management and ability to sustain this property for the long term,” Mesaros said.
Staff’s ranking gave Caton/Granite the edge. Caton was founded in 1984. Mesaros said the company “has a larger and more established development company, has the most experience owning and operating numerous commercial and residential properties. They own over 90 properties in the Chicagoland region, including multi-tenant commercial centers, some of which are located in Cook County, and they do have a national network of tenants and substantial experience recruiting varied tenants.”
VMB also has experience with real estate development and owns a variety of businesses in the region, including a coffee house, gas stations, liquor stores, a hotel and a warehouse.
Rabid Ground’s experience includes its current operation on Bretz Drive and long-time local developer Gene Steinmarch worked with the company as a consultant on this proposal. Steinmarch has worked on more than 20 projects in Homewood, including the original development of Park West Plaza.
Staff also considered each bidder’s financial resources. Caton’s bid indicated it would need little financing. Rabid Ground’s bid included $300,000 in village incentives.
Improves property conditions
Staff ranked Caton/Granite first, VMB Ventures second and Rabid Ground third on plans to improve the plaza.
The village obtained the property because of its history of vacancies, delinquent taxes and deferred maintenance and improvements.
“We want to assure that whoever owns this property continues to maintain it, to pay taxes and to keep this property in good order,” Mesaros said.
Staff determined that Caton/Granite’s plan would make the biggest investment in improvements to the whole property.
Maximizes yield
Staff ranked Caton/Granite first, VMB Ventures second and Rabid Ground third for the ability to maximize yield from the plaza.
“The goal is to analyze the financial benefit of each project to the village and the community,” Mesaros said. “We’re looking at the return on investment for each.”
Rabid Ground’s request for $300,000 in incentives plus a five-year rebate on the village’s Places for Eating Tax, and VMB Ventures’ request for $360,000 in property tax relief, put their costs higher than Caton/Granite’s. The latter requested between $125,000 and $200,000 in TIF-funded reimbursements.
Revenue estimates were based on potential sales tax receipts, Mesaros said. Because Caton/Granite has not identified specific tenants, the sales tax revenue estimate is based on proposed types of uses, Mesaros said. She noted that revenue could be less if any tentants are services that do not produce sales tax.
Staff projected the 10-year return for the village would be $446,272 from the Caton/Granite plan, $414,271 from the VMB Ventures plan and $59,992 from the Rabid Ground plan.
Community investment timetable
Staff ranked VMB Ventures first, Caton/Granite second and Rabid Ground third for its timetable for investment.
“The village values property owners who are invested in the community and have a long term commitment,” Mesaros said. “All three of the proposals through private ownership place the property back onto the tax roll within a year or less. However, the proposals vary in their respective long term plans for the center.”
She noted that Rabid Ground and VMB Ventures both plan long term ownership of the property and of a business in the property. Caton/Granite plans to own the property long term, but will not have a business there.
