Apartment development eyed as 'jump-start' for development in Carpentersville
Carpentersville officials are hopeful a luxury apartment complex can help breathe new life into the area around Spring Hill Mall.
Trustees Tuesday approved a development agreement for the former Huntley Square, which was demolished in early 2021. Hoffman Estates-based WT Group/Olive Street Development plans to break ground by this fall on a 130-unit luxury apartment complex at the southwest corner of Route 31 and Huntley Road.
The intersection, just north of Spring Hill Mall, serves as a key entry point to Carpentersville and is one of the village's busiest intersections.
The development is being eyed as a catalyst for development around the mall, which like other malls in the suburbs has seen occupancy rates drop through the years.
"We're hoping to jump-start the whole area," Carpentersville Village President John Skillman said.
Dubbed Iron Flats as a nod to the Iron & Bolt Co. founded during the village's early years, the project will feature studio apartments and one- and two-bedroom apartments.
Amenities such as an outdoor dog park, an indoor dog wash, a fitness center, rooftop deck, electric car charging stations and a business center will be included in the development, said Heidi Lapin, principal for WT Group/Olive Street Properties. Construction will start this fall with a targeted finish date in late summer of 2023.
For years, the village tried unsuccessfully to buy the rundown property. In 2020, Otto Engineering President Tom Roser, who has developed several properties in Carpentersville, purchased the site.
After the purchase, Roser entered into an agreement with the village that would have required the village to purchase the land for the same price Roser bought it if he could not find a developer by the end of 2021.
The agreement was extended until the end of March to allow WT Group/Olive Street Development to finalize its purchase of the property.
The Hoffman Estates developer will make use of tax increment financing to build the project. The village created the TIF district, which expires in 2038, for the blighted site to help spur development. A TIF district freezes a property's assessed value and any new or increased taxes generated by developments are used to pay for site improvements.
Carpentersville's agreement with WT Group/Olive Street Development allows for the use TIF monies until 2038 or until a cap of $10.97 million is reached, whichever occurs first, said Ben Mason, Carpentersville's community development director. He added the Huntley Square property generated about $36,000 in property taxes in 2020.
Once developed, officials estimate the site would generate $600,000 to $650,000 in property taxes, the majority of which would be rebated to the developer through the TIF agreement.
The village also agreed to waive building permit fees, estimated to cost $1 million for the project Mason said.
Though the area is surrounded by commercial development, village and WT Group officials said they believed a residential development would work best for the 3-acre site.
Village Manager Eric Johnson noted the village had tried to attract business development to that site for years to no avail.
"We've been looking at this area and this corner for several years and we feel this is the best thing to do on that property," said Troy Triphahn, president and CEO of WT Group/Olive Street Development.
He echoed sentiments of village officials that bringing more residents to the area could help spur development and support existing businesses.
Johnson said he has already received a call from a developer who heard about the Iron Flats project and has had early discussions with the village about a potential retail or office development in the area.
"I think this is going to be a great project to jump-start redevelopment on that corner," Johnson said.