Palatine grants extension to downtown development

In yet another sign of the economic times, Palatine officials have granted an extension for a downtown housing development.

On Monday, the village council approved R. Franczak & Associates' request the completion date for The Heritage condominium and brownstone development be pushed back six months to the end of 2010. The project includes one condo building with 48 units and seven row homes in the area of Greeley, Smith and Johnson streets.

"While the condominium portion of the development has been helped by the first -time homebuyer program, our typical row-home buyers are downsizing from a larger house and are having problems selling their existing home," Raymond Franczak wrote in a letter to the village.

The condominium building is completed and occupied, but only the foundation has been poured for the row homes. The three-story, 2,500-square-foot brownstones cost around $500,000.

Councilman Brad Helms didn't hesitate to grant the extension, citing the economy and the developer's quick action earlier this summer to fix damaged sidewalks and fencing, and cut overgrown grass at the construction site.

"The developer seems to be very responsive and, based on the economic times, I support this," Helms said. "It's a difficult situation and we don't want them to feel under the gun."

The project is located within one of Palatine's tax increment financing districts, but because the new completion date is still within the 2010 calendar year, there will be no impact on TIF proceeds the village receives and no reduction in the increment funding Franczak is set to receive under the redevelopment agreement.

The Heritage development is one in a series of projects that have received extensions by the village. Last month, the AC Plaza commercial building on Northwest Highway and the Eagle Point Estates subdivision on Grove Avenue got their completion dates bumped back. Both developers cited the economy and slow sales.