Council approves Redwood of McHenry final plan; developers project $2,800 average two-bedroom rent

The City Council approved an ordinance granting final plan and plat of subdivision approval for the Redwood of McHenry planned unit development after a public Q&A about rents and market comparables.

Kelly McIver, vice president of acquisitions for Redwood, told the council the developer's projected average rent for a two-bedroom unit is about $2,800 a month. “Right now, the rents are projected at an average of $2,800 a month,” McIver said.

Aldermen questioned how that figure compares with local market rates. A staff member who reviewed comps said market two-bedroom rents in the area vary and cited a rough range of $1,700 to $1,900 for the local market in current listings; McIver said her rents incorporate a premium for single-story attached-garage product and include an escalator built into a two-to-three-year lease-up and construction schedule.

Several councilors expressed concern that the proposed rents are above current local market rates and noted broader questions about the city's rental stock and tax revenue. “Above-market-rate rentals contribute to the affordability housing crisis,” one alderman said during the discussion and announced a continuing no vote.

Motion and vote: Alderman Cook moved to approve the final plan (mover: Alderman Cook; second: Alderman Miller). The roll call included recorded yes votes from Aldermen Cook, Miller, Doherty, Davis and Rainey, and recorded no votes from Aldermen Bassi and Glab. The motion carried.

What happens next: The final plan approval allows the developer to proceed with site preparation and permitting consistent with the approved engineering and the previously granted preliminary plan; staff noted there were no material changes between the preliminary and final plans presented.

Provenance: topicintro block_68 (Redwood presentation begins 00:15:09); topfinish block_106 (final votes and closing statements 00:23:34).