Two developers eyeing long-vacant downtown Lake Zurich property

Two developers are showing increased interest for a vacant waterside property that the village of Lake Zurich has been trying to sell since around 2006.

Assistant Village Manager Roy Witherow said a deal for the property - referred to as "Block A" - has progressed further in the process than it has at any point during his 12 years working in Lake Zurich government.

Witherow said both of the interested developers have asked for confidentiality while they consider the location.

"Both parties are looking into finance and investment options and doing their due diligence," Witherow said.

Witherow said positive business growth in the village's downtown is a key factor in generating interest in Block A.

Block A, the 85,819-square-foot parcel at 173 W. Main St., used to be owned by several private owners. The village acquired the land over the course of seven or eight fair market price real estate purchases between 2002 and 2006, said Kyle Kordell, assistant to the village manager.

Those purchases were part of a strategy by previous village leaders to revitalize downtown by creating a special taxing district to buy land, make general improvements and assist with other development-related costs.

Block A is one of a few village-owned parcels acquired in the 2000s that have yet to be sold to a developer.

Recent sales include "Block D," a stretch of South Old Rand Road adjacent to Offbeat Music Store, which Matthew and Anping Lovejoy of Lake Zurich Florist bought in 2021. The Lovejoys are building a mixed-use development that will allow them to expand their flower business and provide new commercial and residential units to the downtown.

Claire Slattery, executive director of the Lake Zurich Area Chamber of Commerce, said the Lovejoys' development is a great example of chamber members helping the community grow. Slattery also cited the success of surf and turf restaurant Vault 232 in the former Bank of America building.

Witherow said another downtown business success is Korean BBQ on the Lake at 133 W. Main St., which opened last March at another property that used to be owned by the village.

Another village-owned land yet unsold is a 86,160-square-foot plot that includes 61 W. Main St. and land on Mionske Drive and Park Avenue, according to the village website lakezurich.org.