Deal calls for $16 million in incentives to develop remaining properties in Mundelein's village hall subdivision
Mundelein officials have inked a redevelopment agreement for a $68 million multifamily and retail project to fill the remaining vacant property around village hall and realize a yearslong vision.
The general plan with Flaherty & Collins Inc. of Indianapolis was unveiled in March, but the official approval Monday formalizes the intent to sell the land and provide financial assistance not to exceed $15.975 million.
The redevelopment agreement also starts the clock on permitting and other processes for the plan on the three remaining village-owned lots south of Hawley Street and east of Seymour Avenue in the downtown area.
Flaherty & Collins envisions as many as 230 market-rate apartments, up to 20 townhouses, a commercial building and a three-story parking garage on open land north and east of village hall adjoining the Metra station.
To the south, construction is underway on a 165-unit multifamily building called Station 250. When finished, the projects will complete the entire village hall subdivision.
Mundelein bought the land in 2012 with the intention of erasing the downtown's industrial image and bringing more people to a revitalized area.
The property surrounds a circular one-way street and unimproved public plaza in front of village hall, the first building in the subdivision. The remaining parcels have been vacant.
According to the village, the properties were acquired to fulfill goals outlined in the 2004 Transit Oriented Development Plan.
A master plan to expand on that was developed to allow for taller buildings and more density. The area was designated a special taxing district as an incentive for investment.
The vision has been to bring people into the station area and to create a walkable space with access to bus and rail and businesses in the area, said Amanda Orenchuk, community development director.
Public gathering spaces also are part of that plan, she added.
The village has worked with several developers to find the best fit for viability, architectural style, cohesion with the transit plan and the amount of public assistance needed.
Under the agreement, Flaherty & Collins will pay $1 million for the property by July 1, 2024. The company also will contribute $300,000 to the design/construction of the unimproved plaza circle.
A full set of plans for the five-story apartment building is due by the end of the year. Construction must begin within 15 months after the closing.
According to the agreement, Flaherty & Collins will be reimbursed a not-to-exceed amount of $15.975 million for eligible costs such as site preparation, environmental review and interest.
Orenchuk said the agreement with Flaherty & Collins is an achievement for the area that has taken numerous village boards and administrations to tweak and carry forward.
The timing had to be right, and the recession from 2008 to 2015 and the COVID-19 pandemic created a number of roadblocks, she said.
As envisioned, the Flaherty & Collins project will feature high-end amenities, a resort-style pool and other features. Filling that portion of the property in Plaza Circle will give the area a sense of place and allow it to fit the village's vision, according to the village.