Town Center Redevelopment

Village and Kensington Developers Advance Redevelopment ProjectKensington has entered into a contract to acquire and redevelop Town Center into a mix-use development that will include retail, restaurants and multi-family residential. 
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Conceptual rendering looking southwest from Route 83. Project includes a mix of retail, office and residential with first floor commercial.
Highlights:Kensington Development Partners is proposing to redevelop the 20-acre Town Center property into a new, modern central entertainment and residential district. Featuring walkability, contemporary building design, as well as upscale tenants, this new central district will be a unique destination for residents and visitors alike.The plan proposes two phases: The first phase looks to redevelop the southern and central sections of the site and includes:
-a new 37,500 square foot nationally renowned grocery store with an innovative format to meet the demands of today’s consumers.
-a 7-story, 275- to 300-unit high-end apartment building with 18,000 square feet of commercial space on the ground floor. Distinctive from traditional multi-family complexes, the proposed
“next generation” apartment building represents the latest in the luxury rental market, where the focus is creating an amenity-rich, convenience-filled environment. 
-65,000 square feet of retail and restaurants scattered throughout the site.
-A half-acre “Central Park” will sit in the middle of the site and can be programmed for concerts, the arts and other civic events.

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Phase 2Phase 2 of the plan would revitalize the remaining 34,000 square feet located on the northern portion of the site, creating new opportunities for existing and future tenants. Under the terms of the MOU, Kensington will pursue Phase 2 within five years of the construction of Phase 1.

Agreement between the Village and Kensington

On Monday, November 1, 2021 the Village of Buffalo Grove will consider a Memorandum of Understanding (MOU) with Kensington to help facilitate the project. The total investment and project costs are estimated to exceed $150 million.
The agreement between the Village and Kensington is the latest step in redeveloping the 30-year-old center. The process first began with the Lake Cook Corridor Plan, which was adopted in 2018 and laid out a community-driven vision. Kensington was attracted to the plan’s bold vision, as well as the corridor’s Tax Increment Financing (TIF) district, established in 2020. In July 2020, Kensington went under contract with the Town Center owners to purchase the property. Since that time, Kensington and the Village have been refining the plan and negotiating a public-private partnership. The resulting MOU specifies Kensington’s obligation to purchase and redevelop the property, per the agreed upon vision. In doing so, the Village will provide eligible TIF funds and 50-percent of the new sales tax growth in an amount not to exceed $24.75 million. The agreement is structured such that only funds generated by the redevelopment project will be provided or shared over the next 20 years - and ensure a timely redevelopment process and financial protections for the Village.
If the MOU is approved, Kensington will proceed with finalizing their plans and enter into a formal redevelopment agreement with the Village. Construction is anticipated to start in the summer of 2022. More information and details will be forthcoming.Image 1Related Resources

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