Elmhurst May Help Developer In 'Blighted' Area

ELMHURST, IL — Elmhurst officials are poised to use special tax district money to extend water and storm sewers to a proposed townhome development for an area seen as "blighted."

The developer is planning three buildings with six townhomes each at 240 W. Lake St., facing Interstate 290. It was once the site of an old Ford auto body shop, which was knocked down a dozen years ago and has been unused ever since.

The city has been in talks with the developer for about three years. The project was a topic at Monday's meeting of the City Council's Development, Planning and Zoning Committee.

The land at 240 W. Lake St. was once the site of a Ford auto body shop. It has gone unused for a dozen years. (Google Maps)

Attorney Mike Roth, who represents the developer, said his client originally sought $1.7 million from the area's tax increment financing district, or TIF, to make the project a reality.

But he said the city signaled it would not approve that request. Officials now appear open to an agreement in which the city would extend water and storm sewer and vacate a nearby alleyway.

If the city had approved the $1.7 million, the developer could have offered the condos for $400,000 each, filling a need for more affordable housing in town, Roth said. Without the money, he said, the units would go for $500,000.

"It's disappointing not to target that more affordable market. That was something we were really excited about," Roth said. "A lot of people in Elmhurst, my kids included, would like to buy something these days, but it's getting out of hand."

Committee member Mark Mulliner said extending utilities is a good use of TIF dollars.

"That would allow us to build up this blighted area. It would help us with the rest of Lake Street," he said. "I think it's a necessity for any development in this area, we need to do the water and sewer."

Currently, he said, wells were being used on properties such as 240 W. Lake.

The committee's chairwoman, Dannee Polomsky, said the utilities appeared to be an appropriate use of TIF money.

"Generally, I think it would be great to develop that area," she said.

The committee made no decisions. Polomsky said she would like to see the developer's TIF application, "redacted appropriately."

Roth is also representing the company that is proposing a six-story housing complex in downtown Elmhurst.