Council approves McHenry Senior Commons development agreement after debate on fees and parking

The McHenry City Council on March 3 approved an ordinance authorizing the mayor to execute a development agreement with McHenry Senior LLC for the McHenry Senior Commons, a proposed 40‑unit, age‑restricted multifamily development financed through low‑income housing tax credits.

The council vote cleared three related actions: authorization to execute the development agreement, approval of a final plat for the Houston Funeral Home resubdivision, and release of memoranda of understanding referenced in the staff packet. The project is age‑restricted to residents 62 and older and includes units set at income limits tied to area median income under the tax‑credit financing.

“It's actually age restricted 62 and older,” Sarah Beck of Baird Development told the council when staff asked her to explain the financing and rent structure. Beck said the development includes units rented at roughly $500–$600 per month at the lowest income bands and $1,100–$1,300 at the higher band, with the property financed by the low‑income housing tax credit program and a long‑term investor committed for a minimum of 15 years.

Council discussion focused on two technical areas: parking and capital development fees for water and sewer. City staff described the fee adjustment not as an arbitrary reduction but as a calculation based on measured water use. Staff said they had previously used the Illinois EPA’s standard assumption of 100 gallons per day per unit but have, for recent developments, required the developer to submit municipal bills from similar developments and used actual usage per bedroom to calculate capital development fees. Staff said that for comparable senior projects actual use is closer to 30–50 gallons per day, and the city builds a 20% contingency into fee calculations.

Aldermen questioned whether reduced capital development fees shift future costs onto ratepayers. City staff and council members clarified that capital development fees are earmarked for system expansion and are separate from base rates used to maintain existing infrastructure, but several aldermen urged careful monitoring and suggested provisions to reevaluate fees if usage spikes.

Other details recorded in the meeting: the developer expects to break ground in April 2025 with an approximately 14‑month construction schedule; lease‑up is expected during the final three months of construction and is typically swift for similar projects; parking is currently planned at about 1.5 spaces per unit with room to expand if necessary.

The final vote on the ordinance carried (Yes: Miller, Cook, Davis, Bassi; No: McClatchy, Glab).