A possible spark: Wauconda TIF’s first redevelopment deal includes a Starbucks

A plan to build a Starbucks and make improvements in an area south of Route 176 and east of Route 12 in Wauconda is considered a big step in an area targeted by village officials for redevelopment.

In fact, a pact inked by the village with Bradford DIR LLC for property just east of Chase Bank is the first redevelopment agreement within an area designated 11 years ago as a special financing district to encourage private investment.

As part of the agreement, the village will reimburse Bradford up to $1.25 million for expenses to demolish the vacant former Fifth Third Bank, prepare the site and improve a main intersection. Bradford anticipates investing $9 million into the two-phased project.

The first part involves demolishing the bank and backfilling and grading the site by June 30; building a Starbucks to open by Oct. 31; and preparing a portion of the property along Route 176 for additional development.

In the second phase, the intersection of Route 176 and Brown Street will be realigned to reduce the entrances from two to one. Brown Street will be extended south and a sidewalk built to improve access to the site, including Starbucks and future developments.

Barring unforeseen delays in approval from the Illinois Department of Transportation, that portion of the project is expected to be completed by Dec. 1, 2026.

The village will use tax increment financing, or TIF, funds for the reimbursement. The Bradford property is within a large TIF district generally south of Route 176 east to Barrington Road (Route 59) and south and west of Route 12.

When a TIF is created, property taxes paid to government bodies are frozen. Tax increases generated by the increased value of development (the increment) are directed to a special fund used for eligible development-related costs.

“By investing a portion of accumulated TIF funds into the development, the village is supporting the removal of a blighted building and the improvement of the problematic intersection,” said Village Administrator Allison Matson.

“Ultimately, we want to see Bradford continue the development behind the (Route 176) frontage onto the 4.5-acre site it already owns,” she added. “That would be much less likely to happen if the old building doesn’t come down and we don’t fix the access at the intersection.”

As an added incentive, the village negotiated a right of first refusal to buy the 4.5 acres at 10% below market value not to exceed $1 million if the property is not under development within two years after the Brown Street work is done.

Bradford is known for its retail “power centers” featuring national and regional chains. In Wauconda, the Bradford property represents a small portion of a much larger TIF district but is considered a big deal as a possible spark for others.

This is the first redevelopment agreement but not the first significant private investment in the TIF area, Matson said.

Alta Rehab at Route 176 and Thomas Court to the east completed a major addition a few years ago.

“We are also hoping to keep the momentum moving east on Route 176,” she added.

To facilitate that and set the stage for the future, the village board next week will consider amending the village’s comprehensive plan for the eastern portion of the TIF district.

Improving access, encouraging redevelopment of vacant or underutilized lots and enhancing the appearance of the Route 176 corridor are among the objectives.