Downtown Elmhurst Firm Pulls Project For Now

ELMHURST, IL – A business that was in line to get city money in exchange for constructing a three-story building downtown has pulled the project – at least for now.

Under a 5-year-old agreement, New Home Star, 145 W. Second St., was set to get $335,000 in economic development money for the project. It had already received some of that money.

In an April 1 email, Assistant City Manager Mike Kopp informed a city committee that the project would not happen.

"Prior to my meeting with them, I received a call from New Home Star stating due to the world we now live in and the effects of the past couple of years, they will not be moving forward with their project," Kopp said.

The firm's deadline to complete the project was Wednesday.

"They understand that means repayment of the funds we already paid them (I will need to verify amount) as well as bringing their property up to code. Most particularly the parking lot," Kopp said in the email.

In an interview Thursday, Taylor Holop, senior director of corporate operations for New Home Star, said supply chain issues prevented the company from meeting the deadline.

He said the business would pay back any money it was given under the agreement and pave the parking lot.

"It is our plan to still build the building and stay here in Elmhurst," he said.

New Home Star already operates its corporate office in a building on the property, with more than 30 employees based there, Holop said. He said the business had no definite timeline on when it would construct the new building.

The company has branches around the country.

In an interview Thursday, Elmhurst Alderwoman Dannee Polomsky said the city attorney was working on a resolution to wrap up the matter.

The city money was to come from a downtown tax increment financing district.

New Home Star came up during a mid-March meeting of the City Council's Development, Planning and Zoning Committee, which Polomsky heads.

At the meeting, New Home Star representatives asked the committee to extend the agreement for another two years, according to meeting minutes. They said the pandemic delayed the work.

Mayor Scott Levin said the planned project was good for Elmhurst, but said two years was too long to allow the gravel lot. He suggested six months.

The company's representatives said six months was too soon and that a year would be better.

Alderwoman Emily Bastedo said the city's patience was wearing thin because of the delays, according to the minutes.

Bastedo requested the lot be used for public parking after 5 p.m. and on weekends. The representatives said they were open to that idea, noting they already have such an agreement with the nearby Fitz's Pub.

Kopp recommended adding milestones for different parts of the project such as zoning, permits and construction.

Alderman Mark Mulliner agreed with that idea, recommending city staff meet with New Home Star to establish a timeline.

Members of the Development, Planning and Zoning Committee agreed for that meeting to be arranged.

In Thursday's interview, Holop said the business determined after the city meeting that it couldn't proceed under the agreement.

"We knew the agreement would expire," he said.