Oswego, Shodeen finalize deal for The Reserve at Hudson Crossing
OSWEGO, ILL. – More residents, more shops and dining, more parking, and a more charming downtown experience are all on their way to Oswego as
the Village of Oswego and Shodeen Group announce a $64 million redevelopment deal to take the former Alexander Lumber property in downtown Oswego from vacant to vibrant.
On Dec. 11, 2017, the Oswego Village Board is expected to officially approve a deal struck between the Village and Shodeen Group, finalizing the details on The Reserve at Hudson Crossing, a residential and commercial development in the heart of downtown Oswego.
The two six-story buildings, nestled between the Village’s downtown core and its picturesque riverfront Hudson Crossing Park, have been designed to anchor downtown Oswego’s revitalization as a shopping and dining destination. In addition to 245 luxury apartments, The Reserve will include 12,000 square feet of new restaurants and shops along Washington Street (Route 34), a reimagined streetscape with inviting benches and lighting, plus two levels of public parking that will create 506 spaces for residents and downtown shoppers.
“It has been exhilarating to watch the vision and planning of this Village Board come to fruition through our talented staff. Economic Development Director Corinna Cole and Administrator Dan Di Santo have led efforts on behalf of the board to shape what will be the largest development deal in Oswego’s history,” said Village President Gail Johnson. “This is a transformative project that will be a catalyst for additional development in our downtown. The Reserve at Hudson Crossing is about enhancing the identity of our community. Residents and business owners have asked for a vital, thriving downtown. Now, we are one step closer to making our shared vision possible.”
The $64 million project exceeds many of the expectations for what is at the heart of the Village’s long-range planning: a redevelopment on the former Alexander lumber site that will jump-start reinvestment in downtown Oswego. By combining the lumberyard site with adjacent properties to the north, the project is expected to generate more property tax revenue than previously proposed and accelerate the rate of redevelopment for the whole downtown.
The Village’s contributions to the project total approximately $7 million, all of which is eligible to be reimbursed to the Village through future TIF-funded projects, and includes the initial land purchase that made the deal possible, as well as the complete reconstruction, infrastructure improvement, and redesign of Harrison, Jackson and Adams Streets, which are aging and in need of repair. To back the construction of the publicly owned parking deck, the Village will additionally issue a $16 million bond to be repaid by Shodeen through incremental property tax payments.
At the end of the project, the Village will own the parking decks, and, along with the street reconstruction project, the Village will acquire assets worth approximately $20 million.
Shodeen will contribute a total private investment of $57 million, split between $41 million in traditional private financing and $16 million in TIF increment property taxes.
“This has been a carefully considered and hard-driven bargain,” Village Administrator Dan DiSanto said. “In the end, Shodeen gets profitable project and the Village gets a revitalized downtown. The Village will also receive long-needed streetscape enhancements and a publicly owned parking deck, which we are getting for a very good price.”
“The Chicago Metropolitan Agency’s (CMAP) comprehensive planning work called ‘Goto 2040’ and CMAP’s ‘Onto 2050’ urges and emphasizes the need for communities in the six collar counties to reinvest in their downtown areas deploying opportunities for compact, walkable, and mixed-use development that will provide the residents with a range of housing options. Shodeen has been actively pursuing these trends for years and are proud to join the thoughtful leaders in Oswego who are championing this very same objective as urged by CMAP and the market,” said Dave Patzelt, president of Shodeen Group. “Shodeen is proud to contribute our expertise to this partnership with the Oswego leaders, taking this long-dormant property and redeveloping it into not only a housing opportunity but also an economic engine for the existing and future businesses of downtown Oswego. Truly all involved are taking the appropriate steps to transform this vacant parcel into the Reserve at Hudson Crossing.”
Following the formal approval of the agreement, it will take approximately one year to break ground, and move-in for the large project is expected by fall 2021.
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