I am using ArcMap 10.8.1 for this project. I am attempting to bring a small town's CAD map of their streets and buildings into ArcMap and then will work on converting some of this data to shapefiles.

The CAD Drawing doesn't seem to have any sort of coordinate system, but I can use the measure tool within CAD and everything seems accurate there (the scale in the legend matches up with the measuring tool).

However, as soon as I bring it into ArcMap the drawing gets massive and is over 10x bigger than it should be. The scale bar should be 2000ft but when I measure it in ArcMap it is close to 30,000!

I am using the correct projected coordinate system from what I can tell (NAD1983 Illinois East) and the GCS is also NAD 1983, so I am unsure of what else I can do to match it up. I've tried playing with these a bit but with no luck.

I've never done something like this before, so I'm 100% sure I'm just missing a step here. I was able to move the drawing on top of a reference point I made using the BaseMap, but that's not much help if the scale is completely off.

Is there anything I am missing here?