East Dundee reviews formal proposal for housing development

A local developer has made an offer to purchase East Dundee land, on which he proposes building market-rate apartments targeted for empty nesters and retirees.

The roughly $15 million project, called Utopia of East Dundee, would include six 12-unit and four six-unit buildings constructed on nearly five acres off Route 72, said builder and developer Bruce Oehlerking. About 2.5 acres of the vacant land, which is adjacent to the 611 E. Main St. building, is owned by the village, and the rest belongs to Plote Properties.

The village board Tuesday reviewed Oehlerking's offer to purchase East Dundee's portion of the land for $395,000. As part of his formal proposal, he is also asking the village to waive impact and tap fees associated with the project, as well as to provide some tax incentives for redeveloping the property.

"I think our future is going to be more of the rental and apartment-style living. If you give me the go-ahead on this, I'll do my best to get it going," said Oehlerking, who also co-owns the Milk Pail restaurant complex. "I think it'd be a real asset to the community."

Officials agreed to place his proposal on file. But before selling land within a tax increment financing district, as is the case here, the village must first seek alternative proposals from any other interested buyers, Village Administrator Bob Skurla said.

Under Oehlerking's proposal, the build-to-suit apartment buildings would be individually owned, with units being rented out for $1,075 to $1,750 per month. The development would operate under a homeowner's association, Oehlerking said.

Two-car tandem garage parking would likely be available for residents, he said, along with additional outdoor parking for guests. He is also considering adding elevators to make the top floors more easily accessible.

Trustees Rob Gorman and Jeff Lynam, however, expressed concern over the size and density of the housing development, especially because some of the three-story apartment buildings would back up to other residential areas. But Gorman said he understands the project might not work logistically or financially with fewer apartments.

"I think that's going to be quite obtrusive to the neighboring residences," Gorman said, but he acknowledged the project might not be financially feasible with fewer than the proposed 96 apartments. "So it's very difficult to make those comments because I'd love to see this developed."

Trustee Dan Selep said he believes such an investment would only benefit the village and would bring in more residents.

If the village board later decides to move forward with the project, Oehlerking said construction would likely begin this summer and be complete by the fall of 2018.