Why Wheeling could pay developers of proposed shopping center more than $2 million

Real estate developers planning to build a shopping center on Dundee Road in Wheeling are in line to get more than $2 million in financial incentives from the village.

The payouts are part of a proposed redevelopment agreement for a complex to be known as London Crossing. The property is on the south side of Dundee Road and west of Elmhurst Road.

The village board could approve the deal with an Arizona-based limited liability company called Thompson Peak 4 when it meets at 6:30 p.m. Monday at village hall, 2 Community Drive.

The proposed complex gets its name from London Middle School next door.

As proposed, the center will contain an 18,900-square-foot building for multiple tenants and a separate 2,100-square-foot building that could house a restaurant.

The recently built Wheeling Township Elementary District 21 headquarters is just west of the site. That three-story, 40,000-square-foot building was part of the original proposal for London Crossing, as were townhouses now under construction.

The land formerly was home to the Dundee Plaza shopping center. It's on the west side of the downtown district Wheeling officials have been trying to create along Dundee Road.

As part of the agreement before the board, the developer would incrementally get $2.225 million from a special village property tax account. As the value of the site rises once the shopping center is built, so will the property taxes the development generates.

Under the deal, at least 75% of the land would have to be occupied by businesses that generate sales tax.

Additionally, the village could suspend payments if, within five years of the project's completion, occupancy falls below 60%, documents show.

Construction is expected to begin by Dec. 31, 2024 and be completed about a year later, documents show.