"What we're doing here is a complex and difficult plan," said Tuohy, who would buy the shopping center from Cleveland-based Richard E. Jacobs Group. "It's a community where you'll have everything you'd look for." The closest example in terms of proximity is the downtown redevelopment of northwest suburban Arlington Heights, Tuohy said, a series of new residential and retail buildings around the Metra commuter station. Tuohy's University Station would add a college and offices near a new Amtrak station on the line serving Chicago and Milwaukee, making it a "smart growth" development intended to add fewer cars to already congested Lake County highways.

By the end of January, the once-successful 1.25-million-sf regional shopping mall serving much of northeast Lake County will be 80% vacant. The remaining tenants, including a barber shop, gift shop and eyeglass store, are moving by the end of the month to make way for redevelopment. Its only remaining tenant is retailer Carson Pirie Scott, which has had a store here for 30 years. The store is likely to stay, though in less space than the 250,000 sf it already has at its anchor location.

Redeveloping the existing shopping center as well as outlots is estimated at $150 million, Tuohy said, while the residential and entertainment elements of the development as well as necessary infrastructure would cost another $650 million. The Lake County developer says he has the debt financing lined up for the project. While Tuohy continues raising equity for the project, the city has approved a 23-year tax increment financing district for Lakehurst, diverting property tax increases from the shopping center back to improvements there. The most recent property tax bill for Lakehurst came to $392,374, according to tax records, based on a market value of $13.7 million.