Main Street in Lincolnwood, IL

14 Jun Lincolnwood, IL Bans Self Storage Development for a Year

By Alex Hassel, Storage.com

The self storage market isn’t getting much of a welcome in Northern Illinois. The Chicago Tribune reports that Lincolnwood lawmakers announced a yearlong ban of any new self storage development in the municipality’s commercial zoning districts. This comes after a proposal to tax self storage facilities back in April, a discussion that has since been postponed. At this time, the village’s Committee of the Whole is trying to find a way to bring in larger tax revenues from the commercial space that’s still available.

According to Steve McNellis, Community Development Coordinator for Lincolnwood, the board’s decision means that, over the next year, new storage development can’t take place in available spaces zoned for manufacturing or office use. That covers an area of about 1.6 square miles between West Touhy, West Devon, North Lincoln, and North Cicero avenues.

At this time, there are three self storage facilities in Lincolnwood: Two Public Storage locations at 6460 N. Lincoln Ave. and 3501 W. Touhy Ave. and a Lock Up Self Storage facility at 3850 W. Devon Ave. McNellis said at least one self storage developer was considering building another facility in that area when the committee decided to take action.

The village plans to use the coming year to study how other cities regulate self storage businesses, giving the Plan Commission and Village Board further resources for its consideration as to whether or not to make lasting zoning changes.

“No one is saying at this point that self storage facilities shouldn’t be permitted,” McNellis told the Chicago Tribune. “The point is maybe they shouldn’t be permitted on major commercial corridors.”

The village started looking at self storage facilities differently back in April 2016 when it first considered a new tax to raise $235,000 more a year for the municipality. Lincolnwood officials say they’re at 90% capacity, but they’re not bringing in the tax dollars the village is looking for. According to information from the Cook County’s tax assessor, the three properties brought in a combined $267,680 in 2014. Only 10% of that amount went to Lincolnwood.

In a state like Illinois, self storage facilities don’t pay sales taxes. Many in the village would rather use the existing commercial spaces available to bring in businesses more profitable for Lincolnwood.

Village Manager Tim Wiberg said the municipality actually banned banks in its commercial space several years ago for the same reason. “No one is saying at this point that self storage facilities shouldn’t be permitted,” McNellis told the Chicago Tribune. “The point is maybe they shouldn’t be permitted on major commercial corridors.”

Alex Hassel is News Reporter for Storage.com. If you’d like to pitch Alex a self storage industry news story, email [email protected] or call 402-779-7328.



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