Water Street bonanza
The city paid about $2 million for the 2.1-acre library site, which will be given in addition to the $10.8 million to the developers, RSC & Associates and Ryan Companies.
Kaptain has estimated that the land is now valued at about $5 million, putting the incentives at closer to $15 million.
He said the city would be chipping in about 23 percent of the total project cost, which is more than the about 15 percent the city generally donates.
“It’s the largest incentive for a development of this type in the history of the downtown,” he said.
The building will include 146 condos, eight townhouses and about 18,400 square feet of retail space at the street level.
Four restaurants would front the river, and a new street -Water Street - would be built to run through the development.
Jim McDonald, director of real estate for Ryan Companies, said that if the project is approved Wednesday construction would likely begin next fall and be completed in two years.
“The revenue in this project will far exceed the $10 million that the development is receiving,” Schock said. “And that tax revenue will be spent to improve other areas of the (downtown).” (source: Daily Herald 12/5/06)
Rather misleading for the mayor to claim the incentive is only $10M, don’t you think? He’s rounding $10.8M down to $10M and then ignoring the $5M value of the land.
Still, I’m skeptical that even with all these incentives, the project will ever be built. If condos in the downtown make economic sense, why hasn’t River Park Place broken ground on their condo yet? And why isn’t the city doing anything about it?
I think the demolition of this and other buildings will just mean that there will be a lot more piles of rubble or empty lots in downtown Elgin for the foreseeable future. Stuff may eventually get built, but not likely in this real estate cycle. If Fountain Square completes both phases of its project that will in itself be worth celebrating. But I have to be skeptical.
I’m skeptical about the restaurants and the retail as well. In fact, I couldn’t help but laugh when I read the mayor’s wishlist for the restaurants he would like in downtown Elgin. Anyway, I think I’ve had about enough of this mayor. I would be willing to vote for David Kaptain for mayor just to get some reprieve from this senseless Schock and awe campaign aimed at leveling all our landmarks–and not to mention the reckless spending. The DC Cook building is next on their hit list and it’s scary to think about what they’ve got planned for after that.
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