Why West Dundee won't buy back a downtown property after redevelopment

West Dundee has backed out of its obligation to purchase a prominent downtown property from developer Tom Roeser after redevelopment costs came in higher than expected - and are still escalating.

Instead, the village will contribute an additional $100,000 toward the 101 S. First St. project, for which officials have already pledged $350,000.

Roeser, president of Otto Engineering in Carpentersville, purchased the former bowling alley to help West Dundee kick-start its downtown redevelopment, which focuses largely on riverfront properties at First and Main streets.

Plans for the First Street building initially called for an interior and exterior renovation costing upward of $1 million. But as work progressed, Roeser's investment grew to roughly $2.2 million.

"And we're not done," he said.

Though still interested in having a hand in the project, village officials grew concerned with the rising property value and determined they could not backstop its purchase beyond a certain price tag, Village President Chris Nelson said.

So as not to leave West Dundee high and dry, Roeser agreed to accept a higher financial contribution and release the village of a buyback provision included in their redevelopment agreement.

"It's ultimately going to be a much nicer building," Nelson said. "The board was just concerned about following that value."

When the deal was first approved in late 2015, plans for the structure included creating retail space facing First Street and offices facing the Fox River, Nelson said. Around the Corner Candy, formerly located next door, has already taken over a 1,000-square-foot space in the building.

However, other potential tenants have since expressed interest in using part of the building as a restaurant, Nelson said, which would vastly increase build-out costs. Some exterior renovations have also been upgraded, including adding a zinc oxide roof and re-bricking the entire building rather than only a few sections, he added.

"It's a happy circumstance at the end of the day, simply because the restaurant would generate sales tax, whereas an office use would not," Nelson said.

Much of the building's facade, excluding the roof, is expected to be complete within the next week, Roeser said. The remaining interior space will be reconfigured once tenants are finalized.