Another home developer gets a chance to develop downtown Lake Zurich
Lake Zurich has received another nibble from a developer showing interest in building homes on village-owned, downtown waterfront property.
Village board trustees Monday night voted 6-0 to grant a three-month exclusive window for Foxford Communities to produce a specific redevelopment plan for nearly 1½ acres fronting Lake Zurich. Foxford tentatively wants to build 26 townhouses adjacent to a similar multifamily project northwest of Old Rand Road and Main Street.
Foxford is the second company this year to receive an exclusive three-month window to form a project for downtown waterfront property owned by Lake Zurich taxpayers.
Pennsylvania-based Toll Brothers Inc. has until May 4 to submit a detailed plan to possibly build a four-story building with condominiums and retail on about 2 acres near Main and Old Rand.
“Just more great momentum in downtown,” Trustee Jonathan Sprawka said before the village board approved the memo of understanding giving Foxford the three-month exclusive period.
Lake Zurich officials have been trying to revitalize downtown. The village has about $28 million in outstanding debt associated with the long-stalled downtown effort, with $16 million attributed to property purchases.
For Foxford's project to proceed, the company would want “a certain level of financial assistance” from Lake Zurich, according to Village Manager Jason Slowinski. Foxford would need to justify its demand for financial help as part of its redevelopment proposal.
Mayor Thomas Poynton said the market appears to be dictating that downtown redevelopment may wind up residential in nature.
“People have been telling us that for a long time,” Poynton said.
“Developers have been telling us that. They have been telling us that by the fact that they've only brought forward condos and apartments — high end, of course — but we don't have a line for restaurants going into empty spots downtown.”
In December, Lake Zurich has gained General Assembly approval to extend the life of a special taxing zone meant to spur downtown redevelopment. Since 2002, Lake Zurich has had a tax increment financing district in place in an attempt to revitalize downtown.
Originally set to expire in 2025, the village received a 12-year extension for the special taxing area through the lawmakers' action. Lake Zurich officials said they are refinancing TIF-related debt at lower interest rates with the idea of enhancing the village's overall financial position.