Elmhurst Downtown Project Delayed, With Pandemic Blamed

ELMHURST, IL – A business set to receive nearly $350,000 in city incentives is years behind in its project. The pandemic is cited as the reason.

In 2016, the City Council entered an agreement with New Home Star for the development of its properties at Second Street and Addison Avenue.

It planned to improve the building and redevelop the next-door lot.

In a memo last week to the city, New Home Star said it has made much progress on the redevelopment plan since 2016. But the pandemic significantly slowed the project's momentum, the memo said.

New Home Star said it is in the business of new home construction, helping builders sell homes more profitably.

It said supply chain shortages for construction materials and "extreme" delays in home closings pushed back its plan for the properties.

With the former Clark gas station demolished, New Home Star is in the third stage of the state EPA's approval of the project site, according to the memo.

The business is requesting an extension of its redevelopment agreement with the city.

On Monday, the City Council's Development, Planning and Zoning Committee plans to review the proposed extension. After it makes a recommendation, the matter goes to the full council.

According to its agreement, New Home Star is supposed to get $335,000 in tax increment financing district money from the city if it completes the project.