St. Charles temporarily delays condo construction

Instead of condos, St. Charles residents will get a new park downtown - at least temporarily - as the First Street project slumps along with the nation's economy.

Phases one and two of the First Street project are complete. But the project that's expected to be the crown jewel of the city's downtown is struggling to get financing to move ahead with construction on the third phase, which is primarily residential condos.

Right now a large swath of dirt, fencing and construction equipment has marred the otherwise picturesque downtown view of the Fox River for many businesses in the area. That soon will change, thanks to a new agreement.

Aldermen, sitting as the Planning and Development Committee, agreed to a three-month delay in construction of the project's third phase Monday night. The agreement would turn the dirt patch into a park with a small river walk while developers work to secure more tenants.

In the interim, filling the vacant stores of the business phases of the First Street project has become a primary focus. Developers and alderman agreed that locking in some anchor tenants also will help fuel progress toward gaining more residential commitments. An Italian bakery recently opened to become the first main business tenant in the First Street project.

Developers announced they are in the final stages of bringing a JP Jewelers store, a breakfast/dinner restaurant and an Asian dining establishment into the mix at the business plaza.

Alderman David Richards suggested perhaps shrinking the size of project might be worth considering in order to secure the necessary financing, but Rasmussen said his partners aren't ready to go that route just yet.

"We still strongly believe that the plan that was presented is the plan that St. Charles needs to accomplish," Rasmussen said. "The demand in St. Charles is there and will be there. It's the economy that won't let that happen right now. Let's not sell St. Charles short as a community right now."

Grass should be planted by the end of June, and the mini-river walk should be in place by mid-July. The idea of the temporary park is to encourage downtown foot traffic to boost business for the existing First Street tenants and their neighbors.