Barrington close to decision on $17 million incentive agreement for ‘Golden Triangle’ development

After nearly a year of negotiations with Compasspoint Development, Barrington is nearing a redevelopment agreement for a mixed-use project within the village’s “Golden Triangle.”

Village staff presented the draft of a “pay-as-you-go” tax increment financing deal worth $17 million before the village board Monday. Trustees are expected to continue the discussion Monday and could reach a final vote April 28.

Developer Joe Taylor III said he is ready to start construction the day after the vote.

Compasspoint plans to redevelop the former site of the Market Center building and a Volvo dealership at 200-300 N. Hough St. The $90 million project includes a four-story building, the Mylo, with 125 residential units and approximately 12,000 square feet of restaurant and retail space — Taylor said he is negotiating a high-end restaurant lease for 6,000 square feet.

It will also include the MotorCave Auto Suites, a place for car enthusiasts to keep and display their vehicles.

The arrangement ties into the village’s plans to build Park Avenue Plaza, a community gathering space and al fresco dining spot. Taylor said he has agreed to build the plaza on Park Avenue between Cook and Station streets with his own funds.

Redevelopment of the “Golden Triangle” area near Hough Street and Liberty Street has been a long-standing priority for the village. The village established the Liberty and Hough TIF District in August.

Under the agreement, the village will issue two separate notes: one for $16 million upon substantial completion of the mixed-use building and the Park Avenue Plaza project, and an additional $1 million once half the retail space is leased.

The leased tenant spaces must remain at least 50% occupied for 10 years after the project is substantially complete. Otherwise the village can pause incentive payments.

Village Manager Scott Anderson said the negotiations began with the idea of a pay-as-you-go TIF, which means the village is off the hook for any out-of-pocket costs. Incentive dollars will only be paid from the accrued tax increment after collection and distribution to the Village.

Eligible TIF expenses include land acquisition, environmental remediation and underground utility work but not building construction.

“We ended up basically where we started in this whole discussion, but with terms that are favorable to the village,” Anderson said.

Taylor called the agreement a good deal.

“We have a considerable amount of site work and engineering to do,” he said. “(If not) for this TIF, the project probably wouldn't be feasible.”