Developer proposes ‘bold, buildable’ project with performing arts center for downtown East Dundee

A performing arts center, boutique lodging, apartments, retail and townhouses could soon fill a two-acre parcel that once housed a lumberyard in East Dundee.

Village trustees will review plans Monday that would transform one of the last developable properties in the downtown district.

“Heritage Station is bold, buildable and legacy-aligned — a rare opportunity to transform a historic block into a cultural and economic cornerstone for East Dundee,” West Dundee-based developer Sightwell said in its proposal.

The proposed development, dubbed Heritage Station, includes 8,000 square feet for a performing arts center, possibly a satellite site for Crystal Lake’s Raue Center for the Arts, and 6,000 square feet for retail space. Additionally, Heritage Station would include nine to 12 townhouses. Above the retail shops, Sightwell proposes five to six rental apartments and space for The Station House, which would offer 10 suites for boutique lodging.

The project also includes a civic plaza that will help connect to the Fox River Trail. In addition, work would be done to extend Meier Street and add parking for the development along the new extension.

“The opportunity to help write East Dundee's next chapter is really energizing and appealing to us,” Sightwell owner Andy Burns said of his proposal.

Village President Dan Pearson expressed support.

“I think it’s a great addition to our downtown … there’s a little bit for everyone in this one,” Pearson said, referring to the multiuse proposal.

Sightwell has developed and owns various properties in West Dundee, including three boutique lodging properties and Emmett’s Brewing Co.

In 2023, East Dundee purchased the former lumberyard property off Railroad Street for $800,000 to aid redevelopment. Last year, Raue Center officials pitched the idea of bringing a satellite location to East Dundee.

To spur development at the site, the village plans to sell property for $10.

Earlier this year, village officials sought proposals for the lumberyard property that would feature a performing arts center and other uses. Sightwell submitted the only proposal. In its proposal, Sightwell said the performing arts center space would be leased to a regional entity.

“We’re all excited about the possibility of getting this deal worked out where we could have a performing arts center right in our downtown, which would be a huge boost to our downtown,” Trustee Scott Kunze said.

Burns said the boutique lodging offers a unique opportunity to pull travelers off the highway and into the heart of a town. His three properties in West Dundee are all located in the downtown district.

“It helps us showcase what’s going on in town … which is great for the local restaurants and shops,” he said.

On Monday, trustees are expected to give direction to village staff on the proposal to help guide a development agreement.

Sightwell anticipates using $2.5 million from a tax increment financing district to help pay for some of the project costs. In its request for proposals, the village proposed a TIF district to aid redevelopment.

Municipalities typically use TIF districts to help spur development on troubled or shuttered properties. In a TIF district, property taxes paid to local governments are frozen at their current level for 23 years.

As redevelopment takes place, land values increase, bringing additional property taxes. Developers can use that increment to help pay for project costs.

Project approval could take months, but Burns anticipates construction could start as early as 2026 and be completed by 2028.