Algonquin Officials: Financing Secured for Riverside Plaza Project

The village of Algonquin has announced that the developer of the controversial Riverside Plaza building has secured the $11 million in necessary financing to move forward on the project. 

An announcement posted on the village website Friday states developer John Breugelmans has "secured financing and is on track to begin interior construction later this year."

Breugelmans plans to convert the existing 54 condominiums in the building to 63 luxury apartments. The building sist vacant at the corners of Route 31 and Algonquin Road in downtown Algonquin.

Nearly one year ago, Algonquin village leaders reluctantly granted Breugelmans permission to convert the condominiums to apartment units at the Riverside Plaza.

The decision came after Breugelmans said he couldn't sell the units as condos, telling the Village Board that no bank would back a condominium project in this economy. Banks would back a rental building, he said. 

However, the village's approval came with 15 stipulations, one stating Breugelmans must begin the interior work within one year. That deadline is next week, and, as of this time, Bruegelmans has not even obtained the necessary construction permits let alone begin work on the conversion.

He needed the financing to begin the renovation.

Riverside Plaza is expected to have 9,600-square-feet of ground-level retail shops and on-site parking, is scheduled for occupancy in summer of 2014. 

"There have been many long hours dedicated to this project by staff to work with Mr. Breugelmans to ensure this development fits the community vision for downtown a midst a difficult lending environment," said Village President John Schmitt. 

"Coming out of the Great Recession with a significant investment such as Riverside Plaza is great for downtown and is great for Algonquin."

Riverside Plaza will increase the number of people living in downtown Algonquin, which are expected to support existing businesses and help attract new dining, retail, and service establishments.

Plans for the Riverside Plaza rentals called for having two-thirds of the building filled with two-bedroom units and one-third with one-bedroom units. The development has indoor parking and retail space at the ground level.

Another condition of the October 2012 Village Board decision was that the rentals be converted to owner-occupied condos by July 1, 2018. Once completed, the development is expected to add over $10 million of property value to downtown.

"By next year, there will have been over $81 million invested in infrastructure and private development in downtown Algonquin since the beginning of the Great Recession," said Schmitt. 

"As we start to implement the Downtown Planning Study, we are again on our way to bringing a new vitality to the heart and soul of Algonquin."

The Downtown Planning Study, which was approved this past March, highlights development opportunities and strategies upon completion of the $71 million Illinois Route 31 Western Bypass, which is scheduled for next year. 

The Western Bypass will allow Main Street, from Huntington Drive north to Greenwood Court, to be converted to a local road and provide for a more pedestrian-friendly and traditional commercial corridor. 

For more information about future opportunities in downtown Algonquin, visit www.algonquin.org/development.