St. Charles aldermen still don't like Corporate Reserve plan

Developers of the pending Corporate Reserve project on the far west side of St. Charles heard much the same message from aldermen Monday night as they did in November — the project is too dense.

Developers did cut back on the number of residential units; the plan presented in November called for 407 rental apartments, while the new plan includes 331.

Despite the drop in density, no alderman gave a completely favorable view of the project. Indeed, aldermen expressed universal shock at a new request the development team has made.

The project would not include any affordable housing units as required by city code, but the code also allows developers to make a cash payment in lieu of including the units. City officials have calculated that cash payment should be about $2.6 million, but developers want to slash the amount to $50,000.

Alderman Rita Payleitner, who sits on the city's Housing Commission, said billing of the apartments as “high-end” doesn't wipe out the need for affordable housing — or a fair cash payment — in her mind.

“Going from $2.6 million to $50,000, that's going to be a tough sell,” Payleitner said. “And in this community of caring people, this project isn't going to swing on the snooty factor. I've got to see an increase in that (payment) or an increase in the units offered.”

Developers said they expect the units to rent for about $2,000 a month. They will build three buildings and a clubhouse in five months and expect to lease up to 17 units a month based on their own studies of the need for rental housing in the area.

Alderman Cliff Carrignan said he understands apartments are a popular type of housing in the development community these days, but he's not sure rental apartments are the popular form of housing in St. Charles.

“This was approved as office/research in the comprehensive plan for a reason,” Carrignan said. “What I'm hearing is the market changes. I get that. Apartments seem to be the flavor du jour in the finance world. But I question whether the city of St. Charles needs more apartments.”

Developers made the case that the rental community they are proposing would bring more property tax dollars to the city than an office/commercial development. Their estimates predicted $8.4 million in property taxes coming to the city during the next 10 years with rental housing, versus only $1.3 million without the rental housing.

The developers have already constructed and leased two office buildings on an adjoining lot to the project. Aldermen said the affordable housing issue must be addressed before officials take any vote on the project moving forward.