Elgin Tower Building project pleases surrounding businesses
A plan to convert the Elgin Tower Building into apartments is getting the thumbs-up from nearby business owners and property managers.
Elgin needs more upscale housing downtown, said Katie Lange, leasing agent and assistant property manager for nearby Fountain Square on the River, an apartment complex on South Grove Avenue.
“There is a demand,” she said. “I have been consistently full and have had a consistent waiting list for the last three years. As we get more destinations, like the concerts in the park (at Festival Park), I think demand will be higher.”
Chicago-based developer Richard Souyoul of Souyoul Properties, who partnered for the estimated $13 million project with Capstone Development Group of St. Louis, said he hopes to close on the property “very, very early next year.”
Capstone has an option to buy the 1929 office building, condemned in May, from the Stickling Foundation for $1 million.
The developers want to turn it into 45 market-rate apartments with “nice finishes” for cabinetry, lighting and other amenities.
The Elgin City Council gave approval Wednesday to contributing $4.7 million in tax-increment financing funds — property tax revenue generated in an area above a frozen amount of taxes that goes to local governments — to the project.
Souyoul said he hopes the city's planning and zoning commission will consider his rezoning petition at its next meeting Nov. 3. The issue will then go before the city council.
Developers expect to use about $4.6 million in federal and state historic tax credits.
“The tax credits are contingent on (approval from) the National Park Service, and they have to go through their drill,” Souyoul said. “It takes them 60 days just to do a preliminary review.”
The city plans to provide up to 55 reserved parking spaces in municipal lots at $30 per month for the new apartments. That might be problematic, because the closest parking lot on Chicago Street is often full during the day, said Jose Vargas, owner of Vargas Vision Lab nearby. Still, the project sounds very promising, he said.
“Probably it's going to be good for businesses around, because we are going to supply them with services,” he said.
A market study didn't support having retail on the first floor, according to the developers. Still, Maria Avina, who works at Shockey Jewelers down the block, said she wishes the project included a Starbucks, Panera Bread or Corner Bakery Cafe.
“I think downtown Elgin deserves something like that,” she said.
Betsy Kuhn, owner of Elgin Knit Works next door to the Tower Building, said she's looking forward to the building being revitalized.
“It's a beautiful building, it's a historic building, and residences down here don't stay empty. I know there is a need,” she said. “When people live down here it means more foot traffic, and that is good for all the businesses.”
Souyoul said he's been pleasantly surprised by how well the project has been received by the city of Elgin.
“I'm a little bit taken aback,” he said. “The city has been so accommodating. It's been fantastic.”