FOX RIVER GROVE – Fox River Grove trustees recently approved a $250 million plan to redevelop part of the village’s downtown.
The entire development – which will could include about 500 apartments, 100,000 square feet of commercial and retail space and a hotel and marina – will be broken up into four phases, with the first one starting this fall, village officials said.
The development spans over about 46 acres on both sides of Route 14 as it nears the river, according to an agreement with the developer.
At Thursday’s Village Board meeting, trustees unanimously approved a redevelopment agreement with developer Grove Residences LLC, and a special use permit for the first phase of the project, Village Administrator Derek Soderholm said.
“It’s excellent to have the agreement approved,” Village President Robert Nunamaker said. “And I really have to say that our trustees are sophisticated people that understand the complexities of these deals, and that really is so important.”
Phase one will include three apartment buildings with up to 300 units, according to the agreement. The development is estimated to cost about $60 million, Nunamaker said. The apartments will be located in several lots southwest of Route 14, on both sides of Algonquin Road, documents show. Nunamaker said the space currently holds three commercial establishments and four aging apartment buildings.
Soderholm said construction on phase one is expected to start in the fall, and will take a year to finish.
Phase two will include at least 70,000 square feet of commercial space, phase three will include no more than 200 apartments and phase four will be developed with retail uses and/or a hotel and marina, according to the agreement.
In September 2015, the village closed its downtown tax increment financing district, which was established in 2012, and opened a new one, which stretches from Opartny Drive toward the river and south of Route 14. The TIF is expected to be worth about $8.8 million, Nunamaker said, and will be used by the developer for land acquisition and other developments to the sites. About $2 million in impact fees will be paid to other taxing bodies in the village, Nunamaker said, including the library district, school districts and fire protection district.
Once one phase has received a final certificate of completion from the village, the developer will have 180 days to start the permit process for the next phase, under terms of the agreement.
“It puts some time restriction on it to keep the development moving,” Soderholm said. “And if there is lag, then the village at that time can choose to provide more time or move on to other potential ways to complete the project.”