Progress slow at Port Clinton Place

Developers of the long-awaited southern gateway to Vernon Hills say that plans have slowed because of a poor housing market, but insist promises have been kept and that the project will be completed.

And while the village, which has a stake in what happens, would prefer Port Clinton Place be farther along, officials say delays have not reached a critical point.

At least one would-be resident wants out, saying the excitement of living in a new community within a community has turned to frustration. Port Clinton Place is part of a larger project that includes Vernon Hills Town Center, featuring retail and rental units in a six-story building expected to be ready for occupancy in January.

The development is located along Route 45 near Milwaukee Avenue.

"Here we are, three years out. It's half completed and virtually vacant," said Dara Azari, a stock trader who has lived in Vernon Hills for 20 years.

"The circumstances are quite different from when they presented them to us," Azari said.

According to the village, one of two 66-unit condo buildings is complete. Ten of those units and 20 townhouses are occupied.

To entice would-be residents, Chicago-based Opus North Corp. has introduced a rent-to-own option as part of the marketing plan.

Matt Nix, vice president of development for Opus North, said the rent-to-own program is "another tool to address market conditions."

He said the long-term plan is to continue building row houses and the second condo building, but the market has been slow. Building permits have not been requested, according to the village.

"The demand will be there. Things are moving a bit slower than expected," Nix said.

Both Port Clinton Place and the Town Center are part of a village-designated tax increment financing district. Property taxes paid to government bodies are frozen, and cash for streets, land acquisition and other aspects of the project is generated as buildings are occupied and property values rise.

Because of the slow pace, the village has sold bonds and used cash reserves to pay some expenses involving the project. Those will eventually be repaid, according to John Kalmar, assistant village manager.

"Absolutely, the residential portions of TIF districts are the largest revenue generators," he said.