Committee holds file on proposed federal ICE processing center at West Lake Park Drive after staff briefing

Committee members on Feb. 4 heard a multi-agency briefing and placed on hold a communication about development at 11925 West Lake Park Drive after staff summarized the project, federal exemption questions and outstanding lease documentation.

Alderman Marina Taylor said the file was to provide information to residents and to answer questions about a reported relocation of processing activities now at 344 E. Knapp Street. Taylor said she first received information about the potential move in December and again in January and sought a staff update.

Sam Lykling of the Department of City Development said the property in question previously drew an application for minor modification in 2023 that was paused and later withdrawn. After a new owner purchased the building in fall 2024, a substantially similar application was filed. Lykling said the applicant later informed staff it would invoke the federal exemption from local zoning for federal activities; Lykling said the department has no active minor modification application under review at this time. He said the City Plan Commission was not asked to review the matter because the application was not advanced to a hearing.

Jessa Mila Royo Vega, commissioner, Department of Neighborhood Services, said DNS received building permit applications on Dec. 16, 2024 for interior alterations and for parking/landscape work. Matthew Hanson, DNS manager of the Development Center, said the interior alteration application covers about 17,000 square feet of the approximately 36,000-square-foot building; DNS staff estimate roughly one-third of that 17,000 sq. ft. is drawn as secure space similar to police functions, making that portion functionally akin to a public-safety facility under municipal definitions.

Deputy City Attorney Mary Shannon told the committee that federal law allows federal agencies to be exempt from local zoning requirements for federal uses, though federal entities typically still comply with national building codes. Shannon said the city has not yet received documentation confirming a federal lease or tenant and that DNS has been working with the owner’s representatives on permit submittals; she said DNS staff reported the applicant has voluntarily submitted for permits and paid permit fees, though those acts are not required under federal law.

Committee members asked for additional information about the owner and its business model. Lykling and Hanson said the current owner, an LLC that acquired the property in fall 2024, is affiliated with an entity that specializes in real estate leased to federal agencies; the owner’s agent identified in communications with staff is WD Source, based in Illinois.

Members expressed concern about the nature of the proposed secure space, the degree to which local review and public notification can take place given the federal exemption, and what information the city has about the tenant and operations. DNS said permits for some trades (electrical) have already been issued and that remaining commercial alteration permits were near issuance but that staff need confirmation of the lease to finalize administrative records tied to a federal tenant.

Alderman Baumann moved to hold file 241558 to the call of the chair; there were no objections and the item was held.