Crystal Lake approves $14 million Crystal Court redevelopment deal
Crystal Lake City Council members have approved a $14 million economic incentive package to help transform the long-struggling Crystal Court shopping center into a complex with apartments, townhouses, restaurants, retail stores, an outdoor public area and possibly a hotel.
Located along Northwest Highway, the mixed-use development would be rebranded Water's Edge. Plans for the redevelopment have been in the works for more than three years.
Developer Heartland Real Estate Partners' Managing Principal Tim Grogan said he wants to start demolition "as soon as possible," with hopes to get as much done as possible before winter weather begins.
"By the time the demo is done, we can start to put pipes in the ground later this year and then start foundations in the beginning [of next year]. So, in theory, we can start moving people in September of next year," he said.
As part of an agreement the council unanimously approved on Tuesday, Heartland can receive reimbursement for certain eligible expenses: $6 million for residential infrastructure, $6 million for commercial development and $2 million for commercial infrastructure.
The money will come from a tax increment financing district established for the area in June 2022. A TIF district works by earmarking newly accrued property taxes within a set area for economic development.
If the new revenue doesn't materialize, the city isn't on the hook for the funds, city officials have said.
The project is "a very important piece to the city," Mayor Haig Haleblian said at Tuesday's meeting. The process took almost four years, but he said he is "very pleased" with the final plan.
"We had a vision, and we stuck to it," Haleblian said. "It's really going to confirm what Crystal Lake is all about, which is not only the best city in McHenry County but the best of northern Illinois."
Heartland is a real estate development firm based in Chicago. The company has created mixed-use developments across the country similar to the Water's Edge proposal, including the Algonquin Square complex in Algonquin.
Heartland also is its own general contractor and has its own crews and builders for the project.
Grogan shared more details on the project, including a mural wall and an overlook that juts out for a view of North Lake and the quarry.
Developers originally planned for a permanent cornhole field in the park, but they said they are open to suggestions on how to best use the space. Council member Mandy Montford suggested bocce ball courts.
The complex will include 144 one-bedroom apartments and 96 two-bedroom apartments with balconies on the second floor. The two-bedroom units will be on the corner of the building with a separate entrance.
Residents will have access to a pool, pickleball courts, sand volleyball courts and a clubhouse. The clubhouse will have a fitness room, game room, lockers for package deliveries and a kitchen.
Heartland plans to continue to own and maintain the residential units, but the townhouses could be owner-occupied in the future, Grogan said.
Heartland split the project into two phases, with the first phase on the west side of Waters Edge Boulevard.
Developers are brainstorming what could occupy the east side of the road for the second phase. A hotel is a possibility or more retail space and townhouses could be built, depending on future demand, Grogan said.
"I've been doing this for 40 years," Grogan said. "I think in my career this has the opportunity to be one of the best developments I've ever done."
The current timeline aims to have the first residential and commercial occupancy by the fall of 2024. The first phase is expected to be complete by May 2026.