Elgin council backs tax incentive for redevelopment of historic downtown building
A long-vacant historic building in downtown Elgin will be converted into a mix of apartments and commercial space with the help of a $1.78 million incentive package that received unanimous preliminary approval from the city council Wednesday.
South Grove Holdings, LLC plans to redevelop the two-story building at 61-65 South Grove Ave. into four ground-floor commercial spaces and six second-story apartments.
Funding for the project from the Central Area Tax Increment Financing (TIF) district will cover about 35% of the estimated $5.1 million in redevelopment costs.
Final city council approval is expected at the Feb. 25 meeting.
Council members, including Tish Powell, thanked South Grove Holdings owner Kevin Echevarria for taking on the pricey project.
“For as long as I can remember, this piece of property has been vacant, and I’m excited to see that it’s finally being developed,” Powell said. “This is a big bite to take, but I really appreciate your continued investment in our downtown.”
Echevarria, who also owns Dream Hall on the same block, said they’re working with the State Historic Preservation Office on the project in hopes of receiving state and federal historic tax credits.
Two commercial spaces and the residential lobby will face South Grove Avenue, with the two other commercial spaces fronting South Spring Street. The residential units above will feature one studio apartment, four one-bedroom units and one two-bedroom unit.
Three apartments facing Spring Street would include private, rooftop patios.
The basement will feature a commercial kitchen, meeting room, and storage spaces. An elevator is being added, and the building will get new electrical, mechanical, and plumbing systems.
The original two-story building was constructed around 1885 in the Italianate style. A one-story addition fronting Spring Street was added in 1929.
The building has experienced significant structural damage in the past couple of years, including partial roof collapses in July 2024 and again in August 2025. The developer has already spent more than $740,000 to stabilize the structure and preserve the historic façades along Grove Avenue and Spring Street.
South Grove Holdings purchased the building, along with 76-80 South Grove, in September 2025 from Cuming Holdings, LLC.
The redevelopment agreement includes fee waivers and fast-tracked permit review, as well as milestone-based financial assistance. Construction is expected to begin later this year and be completed within 18 months of the permit being issued.