Oak Brook Proposes Amazon, Ashley Furniture Stores to Replace Offices

A significant development proposal has been submitted to the village of Oak Brook, Illinois, aiming to replace a cluster of outdated office buildings with a large retail presence, including a new Amazon store and a flagship Ashley Furniture store. The project will occupy a 22-acre site along Butterfield Road, currently home to seven low-rise office buildings situated near Interstate 88.

The proposal involves demolishing these office structures to make room for a 225,000-square-foot Amazon retail store, which is approximately 40% larger than the existing Costco store in Oak Brook. Adjacent to the Amazon location, the Ashley Furniture store is planned to span 150,000 square feet over two levels.

Community Impact and Traffic Enhancements

During a recent discussion, Oak Brook Village President Larry Herman highlighted the positive implications of the development. As part of the agreement, the developer has committed to funding an additional traffic signal at the site and dedicating property for future westbound access ramps to Interstate 88 at Meyers Road. This initiative aims to alleviate potential traffic congestion resulting from the new retail outlets.

Herman noted that the Village Board will refer the proposal to the Planning and Zoning Commission for a public hearing, with final approval anticipated in the coming months. If greenlit, demolition is expected to commence later this year, with construction continuing through 2027. He clarified that the Amazon store will function exclusively as a retail outlet and will not feature a warehouse distribution facility.

Financial Implications for Oak Brook

The anticipated sales tax revenue from these new retail establishments could significantly benefit Oak Brook, which currently does not levy a municipal property tax. Herman stated, “Sales tax is the lifeblood that allows Oak Brook not to have a village property tax, and we expect this development — both Amazon and Ashley Furniture — to substantially increase sales tax collections by several million dollars annually.”

He also emphasized the potential for attracting further retail development along Butterfield Road, enhancing the area’s economic landscape. The Amazon retail concept, distinct from traditional large retailers like Costco, will not require a membership fee for shoppers. Herman expressed confidence that the introduction of Amazon will complement existing retail options, including Costco, rather than detract from them.

Herman further elaborated, “The addition of Amazon will drive more retail sales throughout Oak Brook, including Costco,” noting that the two stores would cater to different shopping models.

The Costco in Oak Brook has recently begun a multi-million dollar expansion, reflecting its confidence in the local retail market. Herman expressed excitement that Amazon has chosen Oak Brook for one of its first stores of this kind in the United States, highlighting the area’s appealing combination of low sales and property taxes, which attracts both consumers and retailers.

Village Manager Greg Summers added that Amazon’s decision is informed by extensive data analytics regarding online sales, enabling the company to select prime locations tailored to local demand.

Herman emphasized his vision since taking office in 2021 to transform the office corridor along Butterfield Road into a vibrant retail hub, asserting that many of the existing buildings are outdated and underutilized. He noted that four of the seven buildings slated for demolition had been repossessed by lenders, reinforcing the need for redevelopment.

This project is seen as a catalyst for further development, aiming to create retail continuity linking the Oakbrook Center and Yorktown Mall, while also integrating with existing retail on the north side of Butterfield Road in Oakbrook Terrace.

The proposal represents a significant shift in the landscape of Oak Brook, aiming to rejuvenate a struggling area while enhancing the village’s financial sustainability through increased sales tax revenue.