Downtown Joliet Looks To Lure More Residential Units

JOLIET, IL — Economic Development Director Steve Jones is excited about downtown Joliet's present and its future. Business developers are in regular contact with City Hall, exploring a myriad of projects focused on retail, residential and professional offices. But economic redevelopment isn't a one-way street.

Usually, it involves give and take between developers and local governments. And moving forward, Jones implored his city's elected officials to think outside the box. They must be creative. They must come up with new financial incentives to convince investors and developers that Joliet's downtown is a worthwhile risk.

"One key is to bulk up the population," Jones recently told Joliet's City Council.

In years past, Joliet has relied on Tax Incremental Finance Districts as its primary incentive to spur business redevelopment around the downtown.

But times are changing. And that could spell bad news for the downtown if Joliet becomes too passive. The state's third-largest city may lose out on a number of business prospects that may be here today, but gone tomorrow.

"You could have a situation where it costs more to build the building, to gut it, to bring it to 2017 standards than what the building is worth on paper," Jones said. "We've done (tax) rebates after development occurs in the past. I think we're about to enter a stage where the market is going to dictate that we consider loans upfront. I think the city is going to have to take a little bit of that economic risk upfront."

So what would happen if the City Council isn't willing to pony up more financial incentives for some of these redevelopment projects that may be coming down the pike? Elected officials may need to brace for less appealing scenarios, Jones warned.

"Are we going to have to lower our standards with regard to what we expect downtown?" he asked. "I think we are going to have to change our approach if we want residential downtown of a market-rate nature."

On the plus side, Joliet already has a number of downtown redevelopment projects in the works, Jones noted. The city is currently in negotiations with a new team of developers looking to refurbish the vacant Crabigale's comedy club, a three-story building at Chicago and Cass streets. The club closed more than a decade ago and the building is now owned by the city.

Preliminary plans for the shuttered comedy club call for a bar and restaurant, along with medical offices on the first floor. A dozen residential units would occupy the upper floors.

Another key project is near Silver Cross Field. Plans for the three-story brick building across from the right-field area call for a few retail shops on the main level and 11 upscale apartments on the top levels, Jones said.

That particular three-story brick building, 141 E. Jefferson St., is also owned by Joliet. The city aims to finalize the redevelopment agreements for both projects in the coming months, Jones said.

Images via City of Joliet

What developments would you like in downtown Joliet? Offer your suggestions below.