West Dundee eyeing next steps to redevelop former Supermart site

More than a decade after taking control of a downtown riverfront building, West Dundee officials are contemplating their next steps for facilitating the site's revitalization.

The village purchased the 200 Washington St. property in 2008 with the intention of integrating the parcel into its downtown redevelopment efforts, Village President Chris Nelson said.

Tucked between a single-family neighborhood and commercial activity, the site is "prime" for residential development, he said. West Dundee has received several proposals for such a project, but none were able to "strike the right balance of productivity and density."

Hoping to jump-start the redevelopment process, the village board last week directed staff members to explore costs for demolishing the existing structure, which formerly housed the Dundee Supermart. The move would provide a "blank slate" for potential developers, eliminating the added expense of having to tear down the structure themselves, Nelson said.

West Dundee officials also will likely consider issuing a request for proposals to provide guidelines and expectations for the site's reuse, he said.

"What we want is a proposal that ultimately satisfies the board's wishes," Nelson said, "which I believe (is) a project of modest density, high-quality materials, is owner-occupied and is architecturally in keeping with the surrounding neighborhood."

Potential projects brought forward since 2015 have included row houses, condominiums and zero-lot residences ranging from eight to 18 units, as well as a 45-unit apartment complex, village documents show. None of the proposals were formalized or presented to the board.

The site falls into a tax increment financing district, meaning any property tax revenue generated at that site above a certain level can be used for redevelopment. The village could consider offering an economic incentives to a future developer through that funding mechanism, Nelson said.

Previous proposals have requested the village contribute roughly $1 million or more upfront, rather than waiting to be reimbursed annually for project expenses through the pay-as-you-earn TIF method, Village Manager Joe Cavallaro said in a memo.

"Our organization doesn't want to function that way," Nelson said. "The project needs to sustain itself, and that's really where our mindset is."

Redeveloping the site could result in an estimated $2.7 million in new equalized assessed value, Cavallaro said.

Additional rooftops would generate "discretionary income to potentially increase business in the downtown area," he said. "It would also continue to expound upon the positive redevelopment and business climate that has been gathering steam over the past several years based on the continuation of public and private investment into the downtown area."

Since the Dundee Supermart closed late last year, the village also has received inquiries about a new commercial tenant moving into the store space. But that would require improving the existing building - an investment officials aren't willing to make, Nelson said.

"The village does not want to be a landlord," he said. "The intent was to get this in private hands so it could be redeveloped. We need to move on it."

The village board is expected to discuss demolition costs and potential ideas to include in a request for proposals during its Aug. 19 meeting.