Chicago Construction News staff writer
The City of Elgin is moving forward with plans to transform the long-vacant building at 61–65 S. Grove Ave. into a mixed-use development.
At its Feb. 11 Committee of the Whole meeting, the Elgin City Council unanimously supported a redevelopment agreement with South Grove Holdings, LLC, which is expected to be officially adopted at the Feb. 25 council meeting.
The project would convert the historic two-story building into four ground-floor commercial spaces and six apartments on the second floor. Total redevelopment costs are estimated at $5.1 million, with up to $1.78 million in Central Area Tax Increment Financing (TIF) assistance proposed to support the project.
City officials say the agreement leverages economic development tools to rehabilitate vacant and deteriorated downtown properties while encouraging private investment.
“This redevelopment reflects Elgin’s commitment to strengthening our downtown and preserving our historic buildings,” said Marc Mylott, community development director. “By partnering with private developers, we are creating new opportunities for businesses, residents and the community as a whole.”
The building has significant structural damage, including a roof collapses in 2024 and 2025. South Grove Holdings has already invested more than $740,000 to stabilize the structure and preserve the historic façades along Grove Avenue and Spring Street.
Plans include a fully accessible building with an elevator, updated building systems, and renovated storefronts and windows. Three of the six apartments, facing Spring Street, would include private rooftop patios.
The redevelopment agreement includes fee waivers, expedited permit review, and milestone-based financial assistance. Construction is expected to begin later this year and be completed within 18 months of permit issuance.
Located near the Fox River and downtown shops, restaurants and public parking, the project supports Elgin’s ongoing investment in its downtown as a hub of growth and opportunity.
I’m so excited to see this redevelopment in Elgin. I spend a good amount of time in my little city’s downtown, having coffee at the Dream Hall, frequenting the other restaurants there, and attending the Farmer’s Market. Elgin is a city with real history and a beautiful river, free parking–it’s great to see this lynchpin building being made useful again.