West Dundee offers up to $1 million in TIF incentives to senior housing developer
West Dundee is offering financial incentives to assist with development of a senior housing facility along the Route 31 corridor.
The Westbrook at Canterfield residential community aims to address a demand for assisted living and memory care in an area where such housing options are lacking, said Tim Scott, community and economic development director. Proposed by Iowa-based Nelson Construction & Development, the project calls for building 126 units on a vacant 9-acre property at Route 31 and Angle Tarn.
In a pact approved last week, the village board agreed to use tax increment financing dollars to reimburse the development group for up to $1 million. The pay-as-you-go contribution will help cover the cost of site improvements for the project, Village Manager Joe Cavallaro said in a memo.
In a TIF district, the property tax revenues that go to local governments are frozen at a certain level. Any taxes generated above that base assessed value can go back into redevelopment.
According to the deal, 90% of the incremental property taxes generated at the Westbrook at Canterfield site will go back to Nelson Construction until the maximum reimbursement is reached.
Cavallaro estimates the village will fulfill its obligation within three or four years upon completion of the project. After that, the additional tax revenue will be collected entirely by the village.
"We feel that the giveback of their taxes for an abbreviated period of time will be more than made up by the fact that they will generate far more increment during the life of the TIF," said Village President Chris Nelson, who has no affiliation with the development group. "Those proceeds will help to fund other projects and improvements throughout the community."
Trustees last week also unanimously approved final development plans for the project, which is expected to cost Nelson Construction about $35 million for land acquisition, construction and other expenses, according to village documents.
The development group is purchasing the site from the Haeger Estes family, who founded the now-shuttered Haeger Potteries in East Dundee. Fourth-generation company owner Lexy Haeger Estes and her husband, Craig Zachrich, have been partitioning sections of the family's estate for development purposes for decades.
But stimulating substantial growth along Route 31 has been challenging, Nelson said, largely because of the way the nearby Randall Road corridor "exploded" with commercial development.
A senior housing facility, though still a significant investment, has little impact on village services and is an appropriate use for the property, Nelson said. By contrast, retail buildings or a high-density apartment complex would have a greater potential of disrupting residents in an adjacent single-family neighborhood.
The Westbrook at Canterfield project also addresses a gap in housing and services for aging residents who want to stay in town, he said.
"What we want is positive activity that serves the needs of the community and that is low impact," Nelson said. "That fits the bill."