The developer of a proposed multimillion-dollar luxury apartment complex at Route 31 and Huntley Road in Carpentersville has walked away from the project despite being approved for village TIF funding and permit waivers.
A groundbreaking event was held for the 130-unit Iron Flats apartments in June and construction on an underground parking lot had started, but when village officials questioned by why work had stopped, they learned WT Group/Olive Street Development had pulled the plug, Village Manager John O’Sullivan said.
“(They) threw in the towel a few months ago,” O’Sullivan said. “We asked them their intention, and they said they were not going to proceed.”
The 130-unit complex was to be built on the former Huntley Square retail and office site, which was razed in 2021.
As an incentive, the Carpentersville Village Board approved a $10.9 million in Tax Increment Financing District funds for infrastracture work and waived building permit fees at an estimated cost to the village of $1 million.
WT Group/Olive Street Development ran into an issue last year with the underground parking, which required more engineering work, village officials said. The initial construction work remains unfinished behind a chain link fence and a sign announcing that Iron Flats was “coming soon.”
O’Sullivan said he didn’t know if the company’s decision to abandon the project was due to economic conditions, finances or some other reason.
Company officials didn’t respond to a request for comment.
“We can’t make them do it. It’s a private entity,” O’Sullivan said. “They simply decided not to proceed with it.”
The property was sold to the Hoffman Estates-based company by Otto Engineering owner Tom Roser, who paid to have the Huntley Square buildings demolished. Although Roser could not be reached for comment, O’Sullivan said he is involved in trying to find a new developer and there may be deal in the works.
A developer “is close to picking up the ball,” O’Sullivan said.
Village officials are willing to “reengage with another developer on a similar TIF agreement,” he said. “We’re still in a situation where it’s a blighted corner. It’s been like that for way, way too long.”
Any new proposal would need village board approval.
The Iron Flats development was given a green light from the board in 2022. Their plan called for a mix of studio, one-bedroom, and two-bedroom units with amenities that included an outdoor fire pit, a rooftop deck, a fitness station and a dog park.
Gloria Casas is a freelance reporter for The Courier-News.