Waukegan approves $900,000 upfront incentive, TIF note for downtown redevelopment despite council concerns

Waukegan approved a development and final incentive agreement on June 2 to support rehabilitation of two downtown properties, authorizing $900,000 in upfront assistance and a long-term, $825,000 tax-increment note tied to projected property-tax increases from the sites.

The vote followed a detailed presentation from special counsel and weeks of prior review: the development team, described in the presentation as the Waukegan Community Development Partnership, proposes to restore the former YMCA at 200 North County and an adjacent property at 38 North Genesee for mixed use. Special counsel Stuart (Stu) Weiss summarized the financing and city protections and said, “we're not going to make you wait for this incentive. We're going to give you the $900,000 upfront.”

The development agreement, as presented, said the two properties would generate new market-rate residential units and ground-floor commercial space. Weiss's slide deck described “26 new market-rate units” in total; a later slide listed 19 residential units at 200 North County and six at 38 North Genesee. Weiss also told the council that the 200 North County acquisition and renovation was estimated at $3.7 million, with requested incentives totaling $1,725,000 across multiple instruments, and that the city’s $900,000 payment would come from previously allocated casino gaming revenues.

Why it matters: council members pressed for clearer protections for city taxpayers and more detail on what will be built before public money is disbursed.…