Agreements Set Stage for Halsey Village Redevelopment: ‘These 90 Acres are an Open Canvas’
NEWS SUN ARTICLE BY: STEVE SADIN
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.”
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 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.
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.”