Village Board Approves Final Plans for The Clove Project
On June 20, 2022, the Village Board facilitated the largest redevelopment project in Buffalo Grove’s history by approving the final plans and a Redevelopment Agreement (RDA) for The Clove project. The project, which is being undertaken by Kensington Development Partners (Kensington) and Urban Street, was born out of the concepts presented in the 2018 Lake Cook Corridor Market Study and Plan.
The Clove will feature approximately 78,000 square feet of new retail commercial space across multiple buildings. It will also include a 0.85-acre park, an approximately 295-unit luxury apartment building with first-floor retail, and a remodeled 35,000-square-foot shopping center north of Old Checker Road. Featuring walkability, contemporary building design, as well as many new tenants, this new district will be a unique destination for residents and visitors alike. The enterprising plan will have an estimated total project cost of $150 million.
The Village retained SB Friedman and Associates (SBF), to assist in the RDA review process and assess the proposed financial structure of the plan. Per the RDA, Kensington will provide up to three developer notes for a combined total amount not to exceed $22.75 million, which is to be paid via the funds generated by the Lake Cook Corridor TIF District and the project’s sales tax. The $22.75 million represents approximately 15-percent of the total development costs of the project. The Village is not raising taxes or taking on debt to pay for the project. The revenue sources are new dollars generated by the project and remitted back to support the developer notes.
SBF’s analysis found that the RDA is structured to safeguard the Village’s finances and does not put it at any financial risk, nor does the Village have any general obligation to support the developer notes. The construction of this multi-year project is anticipated to start in the summer of 2022. More information and details will be forthcoming.