Hanover Park considering 199-unit luxury apartment complex in south commuter lot

Hanover Park trustees have granted conceptual approval to a three-building, 199-unit luxury apartment complex proposed for the underused south parking lot of the village’s Metra station.

Their next step is considering requested financial assistance from the area’s tax-increment financing (TIF) district, which village consultants agreed was necessary to make the project economically viable.

“This looks like it’s going to be an ideal upgrade in our community,” Hanover Park Mayor Rod Craig said.

The 6.3-acre site largely is owned by the village and wouldn’t see the elimination of all commuter parking on that side of the station even if the buildings were constructed.

Chicago-based Synergy Construction’s proposal is consistent with the village’s comprehensive plan, officials said.

The opportunity is considered a result of the permanent impact the pandemic had on commuter traffic.

The station currently has 1,409 parking spaces available, of which 549 are in the south lot. Research found the highest number of spaces paid for in a day since COVID has been 412. The village concluded that even with the removal of the south lot, the number of remaining spaces would be twice as much.

The proposed complex, called Hanover Park Reserve, would include 34 studio, 119 one-bedroom and 46 two-bedroom units. It is considered a transit-oriented development, in which proximity to the Metra station would be a strong part of its appeal.

Synergy Construction Principal Phil Domenico said amenities drive this sector of the rental market. Those planned include workout facilities, an outdoor pool with hot tub, outdoor barbecues, multiple media rooms, a large common kitchen with a private dining area for 12 people, a business center with a large conference room and private offices, and a secure package center.

“It’s a transformative project here,” Domenico said.

With the recommendation of its consultants, the village will next work on a term sheet defining the conditions for public financial assistance.

A TIF district works by freezing the level of property taxes paid to local governments at the level of the first year when it is established. As taxes continue to rise, the additional revenue amount goes to a municipal fund to pay for public improvements and other eligible costs.

To offset its initial costs, Synergy is seeking 95% of the property taxes it would generate during the 11 years before expiration of the existing TIF district.

An estimated $14.6 million in TIF funding would be available to the roughly $60 million project. But the relevant school and library districts could seek a refund of some of it by demonstrating an increase in demand for their services from the development.

Domenico said the project is expected to start late this year or in the spring. An 18-month construction is anticipated before the first move-ins, with the phased development reaching completion in mid-2028.