Site work continues for long-delayed retail development in Wauconda

Tree removal began Wednesday as part of a long-delayed project Wauconda officials envision as a boost to redevelopment in a busy corridor.

That work follows the recent demolition of the above ground portion of the vacant former Fifth Third Bank, south of Route 176 east of Route 12, for a commercial development boosted by a village incentive of up to $1.425 million.

Debris is being removed with grading and other work expected to continue over the next several months to prepare the site for two to three quick-serve restaurants and the extension of Brown Street.

The site is within a broader area designated 12 years ago for a special financing district to encourage private investment.

The village approved an agreement to develop Bradford Marketplace in December 2024.

Demolition was supposed to have begun in early 2025. But delays with Chase Bank approving the redesign of its entry and parking lot as well negotiations ultimately resulting in Starbucks terminating a preexisting lease were among the setbacks, according to a village update last week.

Time also was needed to convey the property from previous owner DIR — which with developer Bradford approached the village for financial assistance — to a new entity called Bradford DIR LLC.

There also have been two amendments to the initial redevelopment agreement. The revised pact caps reimbursement for costs associated with the bank demolition at $575,000 and for the redesigned Brown Street and Route 176 intersection at $850,000.

“There are provisions in the agreement for two quick-serve establishments to open no later than 2027,” said Village Administrator Allison Matson. A provision in the second amendment allows the village take back its contribution to the project if they do not open in 2027, she added.

Starbucks may be a future user but is not locked in, Matson said. Other potential users haven’t been finalized.

The property is part of larger tax increment financing district in which property taxes paid to government bodies are frozen. Tax increases generated by the added value of development (the increment) are directed to a special fund for eligible expenses.

That fund now has a balance of about $2 million. The village has not made any payments to Bradford DIR LLC but it will be reimbursed as portions of the project are completed.

The total public and private investment is more than $9 million, according to the village.

Matson said Bradford Marketplace is considered the first phase of a development that could continue to the back of the property, on which the village has the right of first refusal.

“We would love to see a hotel there,” she said.