Developers: Elgin's market is too sluggish for all-commercial space
The market interest in creating more housing in Elgin rather than office space may continue as a property once planned for entirely commercial use wants permission from city officials to pursue a mixed residential plan instead.
The project is known as Airlite Square Phase II. It is along Airlite Street north of Larkin Avenue and just south of St. Joseph Hospital.
In 2008, the same developers converted a former furniture store into the current three-unit commercial space. That project now hosts a beauty salon, a dental practice and a law practice.
The neighboring property targeted for phase two has a single-family home that would be demolished in favor of a new three-story building. The first floor would encompass a 2,000-square-foot commercial space. The second and third floors would each contain eight apartments. Each apartment would be 1,100 square feet and feature two bedrooms and two bathrooms. Each unit also would have two garage parking spaces.
The original plan when the development team purchased the site called for a one-story, 15,000-square-foot office building with an underground parking garage. While the owner did not speak to the full reasons behind the change in plans during a presentation to the city's planning and zoning commission this week, the public documents for the project show the altered vision follows difficulty in leasing the existing neighboring commercial space created in the first phase of the development. There have been vacancies at two of the three business spaces over the past five years. It took 10 years to sell the rear condominium unit, which is also part of that phase of the development.
"The pandemic has decreased interest in the already stagnant commercial market, thus making development of additional commercial units a low priority," read the notes in the public documents. "In contrast to the commercial market, housing has remained strong."
Commissioners seemed to agree with that sentiment.
"I'm excited to see this," said Commissioner Nancy Abuali. "You guys did a lot with little to work with, and it looks very nice."
The commission voted 4-0 to give the project a favorable recommendation and send the plan to the city council for final approval.