East Dundee authorizes negotiations with developer for 7 Maiden Lane redevelopment

The East Dundee Board of Trustees on Feb. 3 authorized staff to begin negotiating a redevelopment agreement with Brinshore Development LLC for the village-owned property at 7 Maiden Lane, a motion the board approved by roll call vote.

The authorization allows staff to negotiate terms for redevelopment of the former Hager property, which Brinshore proposes to transform with a mix of preserved industrial elements, new multifamily buildings facing the Fox River, roughly 30 townhomes, a central “Preservation Plaza,” and a new park and trail connections. The company says the overall project would be financed in part through Low-Income Housing Tax Credit (LIHTC) allocations and a proposed tax-increment financing (TIF) district that Brinshore estimates could contribute roughly $4,000,000 toward cleanup and demolition costs.

The plan, as presented by Brinshore representative Mike Roan, emphasizes adaptive reuse of the existing white Hager building, retention of the water tower and kiln structures where feasible, and a riverfront-oriented layout with parking largely tucked behind townhomes. “Our goal when we started talking to the architects was to really leverage the proximity of the river, the bike path, and try to integrate and connect the new proposal to the existing community,” Roan said. He told the board Brinshore would pursue a mix of one-third market-rate and two-thirds workforce rental units and that the company intends to remain a long-term owner.

Why it matters: the Hager site has been described in the RFP and by staff as blighted and in need of investment. The board’s move begins a multi-step public process that will include a formal redevelopment agreement, required public notices and later zoning and planning reviews before any demolition or construction begins.

Key elements of the developer’s presentation and the board’s discussion included: - Preservation focus: Brinshore proposes preserving the Hager building where structurally feasible, keeping the water tower and kiln areas as focal, public-facing features, and creating a Preservation Plaza that could host markets and community events. - Housing and affordability: The proposal would be 100% rental, with the developer proposing a mixed-income model (approximately one-third market-rate units and two-thirds workforce units). Roan explained LIHTC mechanics to the board, including that an investor typically remains for 15 years while the developer’s extended-use period is 30 years under the tax credit program’s rules. - Financing and timeline: Brinshore indicated it would pursue LIHTC allocations (PPA application due in December, full application in March 2026 under the timeline in its RFP response) and expects project financing to be a major source of capital; the firm estimated total investment at about $70,000,000. The company and staff projected schematic design, tax credit application, and zoning steps could lead toward breaking ground in roughly two years if schedule and approvals align. - TIF and cleanup: Staff and the developer said a new TIF district would be created for the project on a “pay-as-you-go” basis, meaning reimbursements to the developer only occur from incremental tax revenue generated by the project. The board’s packet and public comments described the village does not have $4,000,000 on hand and that the TIF is the mechanism proposed to address demolition and remediation costs. - Parking and traffic: The developer’s preliminary site plan proposed approximately 1:1 parking for apartment units and 2:1 for townhomes. Trustees and residents raised questions about whether that would meet village code, the need for a traffic study, River Street closure impacts and potential changes near Van Buren Street. - Public concerns and local features: Residents asked that the development be compatible with East Dundee’s historic character. Britney Hudson, a resident and business owner, said she liked much of the plan but urged that the architecture “blend with the old buildings” and that some land north of Maiden Lane be considered for commercial or mixed uses. Neighbors raised concerns about a spring that runs under a nearby property and asked that the spring and other environmental conditions be protected.

Board procedure and next steps: The board’s vote authorized staff to negotiate a redevelopment agreement; staff said the agreement will be advertised and come back to the board for approval as required by the village’s redevelopment notification rules (“10 act” was cited during the meeting as the legal requirement for advertising the agreement). Staff said the redevelopment agreement will generally set the project scope, proposed unit count and timelines, and would be followed by the developer’s submissions to planning, zoning and other commissions for formal review and approvals.

Votes at a glance: - Motion to authorize staff to negotiate a redevelopment agreement with Brinshore Development LLC for 7 Maiden Lane — Approved (roll call: Trustee Bridal: Yes; Trustee Treiber: Yes; Trustee Sauter: Yes; Trustee Mahoney: Yes; Trustee Coonsie: Yes). - Consent agenda items approved earlier (single motion): approval of regular village board minutes dated Jan. 13, 2025; acceptance of warrants lists in the amounts reported in the meeting packet (amounts reported in the packet: $272,553.97; $383,158.58; $787,502.92; $74,261.97); resolution declaring certain village vehicles, equipment and other property surplus and authorizing sale via electronic auction; ordinance amending sections of the village code relating to water and sewer rates — all approved by voice/roll call as part of the consent agenda.

What’s next: Staff will advertise the redevelopment agreement and return to the board with a formal agreement and purchase-and-sale terms. The developer indicated it will begin schematic work and pursue tax-credit applications on the timeline included in its RFP response; public review and planning approvals will follow before any demolition or construction begins.