The developer of a multimillion-dollar luxury apartment complex planned for Route 31 and Huntley Road in Carpentersville has pulled out of the project despite the village’s approval of TIF funding and permitting waivers.
A groundbreaking event was held in June for the 130-unit Iron Flats Apartments, and construction began on the underground parking garage, but when village officials asked why construction had stopped, WT Group/Olive Street Development responded. The village said they learned that construction had been canceled. Manager John O’Sullivan said:
“(They) threw in the towel a few months ago,” O’Sullivan said. “We asked them their intentions and they said they had no intention of proceeding.”
The 130-unit complex was to be built on the site of the Huntley Square retail and office complex, which was demolished in 2021.
As an incentive, the Carpentersville Village Board approved $10.9 million in tax increment financing district funds for infrastructure work and waived building permit fees, which are estimated to cost the village $1 million.
WT Group/Olive Street Development ran into problems with the underground parking garage last year, requiring more engineering work, village officials said. Initial construction work remains incomplete behind a chain-link fence and a sign announcing that Iron Flats is “soon to be completed.”
Mr O’Sullivan said he did not know whether the company’s decision to abandon the project was due to economics, finances or other reasons.
Company officials did not respond to requests for comment.
“We can’t let them do that. It’s a private entity,” O’Sullivan said. “They just decided not to go ahead with it.”
The property was sold to a Hoffman Estates-based company by Otto Engineering owner Tom Roser, who paid for the demolition of the Huntley Square building. Mr Roser could not be reached for comment, but Mr O’Sullivan said he was working on finding a new developer and that an agreement may be in the works.
O’Sullivan said developers are “very close to picking up the ball.”
Village officials “intend to work again with another developer on a similar TIF contract,” he said. “We’re still in a predicament. We’ve been like that for far too long.”
Any new proposal would require approval from the Village Board.
The Iron Flats development was given the go-ahead by the board in 2022. Their plans called for a mix of studio, one- and two-bedroom units with amenities such as an outdoor fire pit, rooftop deck, fitness station, and fitness station. dog park.
Gloria Casas is a freelance reporter for The Courier-News.
First Published: October 3, 2024 12:15 p.m.