Condo Developer May Seek Elmhurst Subsidy

ELMHURST, IL – A developer proposing a condo complex in downtown Elmhurst is presenting options for a smaller project at the request of zoning committee members and neighbors.

But there's a catch: The developer would then seek financial help from the city.

The 28 condos would take the place of older structures from 196 to 202 N. York St. The developer, Oak Brook-based RSCK Holdings, is proposing a nine-story building, with two stories of parking above ground and seven stories of condos.

But RSCK has presented the option of removing one floor of condos, meaning four fewer units, the developer's attorney, Scott Day, said in an email to Patch on Monday.

Another alternative, he said, is tiering the design so that the top floor is set back from York Street, Day said. That would mean the loss of one condo.

"Those two options are presented in full," Day said in the email, "but both will require TIF assistance."

He was referring to the tax increment financing district in the downtown neighborhood. Such districts are known to provide help to businesses, with the expectation that a more expensive development would bring in more property tax income.

The assessed tax value of the property in question would rise to $10 million, from $344,000 now, according to the developer.

With a TIF district, the growth in property tax money is designated for improvements in that area.

Because the proposed condo complex would be smaller, the thought is that it would bring in less income to justify the investment, prompting a request for help.

Last month, a developer planning townhomes at 240 W. Lake St. asked for an increase in TIF assistance to $1.7 million, from $950,000. This was after a City Council committee rejected a larger complex.

Now, the developer said he needs financial help to get a reasonable return on his investment.