Council approves amended special-use permit for Hansen Building at 445 Central, allows medical office with $250,000 donation and quarterly leasing reports
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Summary
The council approved an amendment to allow one ground-floor space at 445 Central Ave to be used as a medical office (reduction to 8 off‑street parking spaces), conditional on a $250,000 donation and a reporting schedule on leasing; the motion passed 6–1.
The Highland Park City Council on Nov. 10 approved amendments to the special‑use permit and development agreement for the Hansen Building at 445 Central Avenue that allow one ground‑floor suite (Suite 100, roughly 3,200 square feet) to be used for medical office rather than strictly restaurant or retail use.
Staff said the approval includes parking relief to allow eight off‑street parking spaces instead of the 38 spaces otherwise required, and the applicant has proposed a $250,000 donation to the city to support economic development initiatives intended to offset potential sales‑tax impacts. Director of Community Development Joel Fontaine presented the changes and noted updated language requiring temporary certificates of occupancy by Dec. 31, 2027 for the remaining ground‑floor spaces.
Developer Scott Campbell told the council he is ‘‘actively looking at’’ leasing scenarios and pledged substantial investment in build‑outs. He said, "you have my promise that it's something I'm gonna do," and agreed to provide updates to the council. Council members negotiated the addition of a reporting requirement: staff will work with the applicant on leasing status reports, with the first report due six months after approval, quarterly thereafter, and a comprehensive staff report at one year.
The council discussed the long history of vacancies at the site, the economic risk, and the need to balance tenant diversification with the city’s retail goals. Council member Bloomberg said he would not vote in favor for reasons he had previously stated during prior council consideration; the final tally on the motion to approve the amendments as amended was 6 ayes, 1 nay.
The approved amendment also includes a reversion provision: if the medical use ceases, the ground‑floor use restrictions will be reinstated to favor restaurant or retail occupancy per the underlying zoning and the revised agreement.
Next steps: staff will document and publish periodic leasing updates per the council’s motion. The development agreement amendment and ordinance were approved Nov. 10.
