Developer to get $24.5 million from TIF for Elk Grove gateway corner project

Public funds will help pay a quarter of the costs of a $100 million transformation of the oldest shopping center in Elk Grove Village.

Wingspan Development Group, chosen by village officials to redevelop the Elk Grove Woods Plaza on the southeast corner of Arlington Heights and Higgins roads, will receive $24.5 million in tax increment financing district funds, under terms of a redevelopment agreement released by the village Friday.

The village established the special taxing district in May 2022, five months after acquiring the plaza’s single-story retail building and since-demolished Elk Grove Bowl. Officials said the TIF ― in which property taxes above a certain level are funneled to a village fund instead of schools and other local governments ― would help fund redevelopment efforts at what is the village’s northern gateway.

“It was cost prohibitive to fix and keep going,” Mayor Craig Johnson said of the retail strip plaza built in 1959. “It needed to be redeveloped. That takes someone stepping in.”

Wingspan officials added the project wouldn’t be feasible without the village subsidy.

The village is selling the 10-acre corner property to Mount Prospect-based Wingspan for $17.5 million in two separate transactions, the first of which was approved by the village board this week. The board also approved the redevelopment agreement and granted the necessary zoning approvals for the mixed-use development this month.

The developer will construct two retail buildings totaling 45,000 square feet; a five-story, 270-unit apartment building with 8,000 square feet of ground-floor retail, a 530-space parking deck, and 16 townhouses.

Construction of the new retail buildings ― one along Higgins Road, and the other at the corner ― is set to take place first. That’s so the existing businesses can remain in operation in the old building, officials say.

Then, when construction is complete, the shops will move to their new digs. That includes Jarosch Bakery, Tensuke Market, Vini’s Pizza, V V Nails, 7-Mile Cycles and Subway. Bright Light Medical Imaging is the only one not staying, Johnson said.

A pedestrian and bicycle bridge will extend over Arlington Heights Road from a new apartment building to Busse Woods. Courtesy of Elk Grove Village

Then, construction will begin on the 6.5-acre residential portion of the site. The village will pay for a bicycle and pedestrian bridge over Arlington Heights Road that will connect the gateway corner property to Busse Woods.

The village’s TIF payouts to the developer are staggered throughout the construction process. Listed eligible costs include $12 million for demolition and site preparation, and $5 million for tenant buildout and relocation expenses, according to the redevelopment agreement.

Construction could start as early as spring, with the new retail scheduled for completion by February 2026. Groundbreaking for the apartment building and garage is set for June 2026 and should be complete by February 2028, under a preliminary timeline.

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