Latest news with #JenniferKonen
Chicago Tribune
01-08-2025
- Business
- Chicago Tribune
Construction begins on first residential lots at controversial Crown development in Sugar Grove
Construction has officially started at The Grove, a mixed-use development planned on 760 acres at Interstate 88 and Route 47 that was annexed into the village of Sugar Grove last year. Work is beginning on just one portion of the development area, set to be the community's first residential neighborhood, according to a news release Thursday from Sugar Grove LLC, an entity of Naperville-based Crown Community Development. That area, located along Merrill Road, will offer single-family homes on 214 lots, which Crown expects to deliver to home builders in 2026. Oswego-based J&S Construction was awarded the site contract for the project, according to Thursday's news release. The Grove has been a long time coming, said Crown's Managing Director Jennifer Cowan on Friday. She said that Crown has owned the property for many years, and that 'a lot of work has gone into positioning the property for development.' Last September, the Sugar Grove Village Board approved the development project and agreed to annex the property into the village and give its developer financial incentives via a tax increment financing district, according to past reporting. The project will sit on what is currently mostly farmland surrounding the Interstate 88 and Route 47 interchange. It's set to include neighborhoods, mixed-use commercial and residential areas, a walkable town center and a business park area. The project faced public opposition, however, both before and after the village gave it the green light. In April, a non-binding referendum question was passed by voters asking the village to reverse its decision on the project. In the same election, former village president Jennifer Konen and an incumbent village trustee — both of whom voted in favor of the Crown project — were voted out. Still underway is a lawsuit against Sugar Grove by Kaneland School District 302, which is challenging the tax increment financing district planned for the development project. A TIF district is a form of economic development incentive, in which the value of a property is essentially frozen, with the extra or 'increment' taxes created by developing the property then going into a special fund used to pay for costs related to improving the area. Kaneland was previously in negotiations with Sugar Grove to create an intergovernmental agreement about the TIF district, according to past reporting. But, not satisfied with those terms, the district floated the possibility of taking legal action against the village in February. The Kaneland lawsuit was filed on June 13 with the Kane County Circuit Court, according to case information on the county circuit clerk's website. The district is arguing that the TIF district will mean the school district will lose out on incremental property taxes levied against the area for a period of 23 years, and that there is controversy over whether the area should qualify for tax increment financing in the first place, according to past reporting. Per the lawsuit, the school district is asking the village to dissolve the TIF district. Sugar Grove Village President Sue Stillwell declined to comment on Friday about the lawsuit. Kaneland Superintendent Kurt Rohlwing said on Friday that the district right now is waiting on an initial hearing, which will likely not be until September. 'We want to make sure that we have a fair deal for the financial arrangements that impact all of our communities,' Rohlwing told The Beacon-News. But, despite the opposition and legal action surrounding the TIF district for the development, the Crown project has continued to move forward in recent months. In late April, the village OK'd a final plat of subdivision, essentially a map dividing up a piece of land into smaller lots, for one portion of the development — the part that just began construction, Cowan said. The latest approval Crown secured was a mass grading permit, which is required by its annexation agreement with Sugar Grove, according to Stillwell. Mass grading is essentially preparing the land at a site for construction. The developer is going to be grading nearly 80 acres of the project area, Cowan said, which could take six to eight weeks. From there, the developer will install sanitary sewers, water mains and storm sewers underground, and pave and finish streets by the end of this year or the spring of 2026. Getting the mass grading permit allows Crown to start construction while its engineering plans are still being reviewed, Cowan explained. She noted that significant rain during the fall could impede the process, so the goal is to have the grading done before then. Crown will have to go through the engineering review process and plat approval process for each portion of the project it brings forward to the village, Cowan said. This first development area is expected to offer single-family homes with two- or three-car garages, according to Thursday's news release. Crown is a land developer, meaning it won't be building the homes that will sit on this development area. But Cowan said she anticipates there could be homes built in this area before the end of 2026. The Crown project as a whole is set to have as many as 1,500 residences, according to The Grove's website, and at least 200 acres of open space, including parks and trails. As for the other components, Cowan said that the industrial portion of the land is already under contract for a data center, which could be built in the next three to four years. For Crown's part, she estimated that its build-out of all the parcels in the project's development area could be finished in about 10 years, not necessarily including the construction of the homes or other buildings that will then be built on top of them. But, for now, Cowan expressed optimism about the project as a whole and the progress being made on this first residential piece of the project. 'I'm really excited to be able to deliver some additional housing supply to this market,' Cowan said. 'It is a supply-constrained market. … Housing supply is definitely a need here in Chicago, in the Chicago metro area.'
Chicago Tribune
26-06-2025
- Business
- Chicago Tribune
Kaneland School District files lawsuit against Sugar Grove over Crown development's TIF district
Kaneland School District 302 is moving forward with taking legal action against the village of Sugar Grove to challenge the tax increment financing district planned for the controversial Crown Community Development project at Interstate 88 and Route 47, according to a lawsuit filed on June 13 with the 16th Judicial Circuit Court. At its May 12 meeting, Kaneland's school board voted to authorize the district to possibly take legal action over the TIF district for the development project. The lawsuit was filed on June 13 with the Kane County Circuit Court, according to case information on the county circuit clerk's website. The project, called The Grove, is a planned 760-acre mixed-use development, commonly called the Crown development in reference to its developer, Naperville-based Crown Community Development, according to previous reporting. The planned development, which the village OK'd last September, is designed to include nearly 400 acres of residential properties, a walkable town center, more than 120 acres of commercial development and about 240 acres for a business park. The lawsuit filed by Kaneland is over the TIF district for the project. A TIF district is a sort of economic development incentive, in which the value of a property is essentially frozen, and the extra or 'increment' taxes created by developing the property go into a special fund used to pay for costs related to improving the area. According to an original proposal, 10% of the TIF funds were to go to the village for any improvements it needs to make in the area, but, in August, then-Sugar Grove Village President Jennifer Konen said Crown had agreed to give another 10% of the funds to be distributed among the other taxing bodies, of which Kaneland is expected to get $26 million. The original TIF agreement also included payments from TIF district funds to offset the cost of schooling for students living in the new housing at the development. Kaneland was previously in negotiations with Sugar Grove to create an intergovernmental agreement about the TIF district, according to past reporting. But, not satisfied with those terms, the district floated the possibility of taking legal action against the village in February. A spokesperson for Kaneland said the district declined to comment on the lawsuit until the village had been served. As of Thursday morning, Sugar Grove's Village Administrator Scott Koeppel said they had not been served. In the complaint, Kaneland says that the establishment of the TIF 'will deprive the school district of incremental property taxes levied against the Redevelopment Project Area for 23 years.' The lawsuit is arguing that there is an 'actual controversy' over whether the area qualifies for tax increment financing, per the filing. The district is making this argument in a few ways. It is arguing that the project area should not be considered 'blighted,' which was part of the rationale for its qualifying as a TIF district, and that the TIF district is not contiguous. It is also alleging that the village has not provided sufficient proof that development would not have occurred in the area without the creation of the TIF district and providing financial incentives to the developer. Per the lawsuit, the school district is asking Sugar Grove to dissolve the TIF district. The Crown development has seen significant community backlash as the project has progressed, including a majority of voters supporting a non-binding referendum in April asking the village to reverse course on the development entirely. In the same election, incumbent Village President Jennifer Konen, who was in support of the project, was ousted, according to past reporting. Pat Gallagher, the primary proponent of the petition for the advisory referendum, told The Beacon-News he felt the situation with the Kaneland lawsuit was avoidable, but he's supportive of it as 'the most appropriate next step.' Sugar Grove Village President Sue Stillwell said in a statement that 'regardless of the nature of the litigation and any dispute,' she is 'committed to fostering a positive, collaborative relationship with the Kaneland School District as well as the other taxing bodies.' According to a statement from Crown Community Development on Tuesday, construction at The Grove has not yet begun, but Crown is working with the village to secure the required permits to begin development.
Chicago Tribune
28-02-2025
- Business
- Chicago Tribune
Kaneland School District considers legal action against Sugar Grove over development project's TIF district
Kaneland School District 302 may pursue legal action against the village of Sugar Grove to challenge the tax increment financing district planned for the controversial Crown Community Development project at Interstate 88 and Route 47. In the latest backlash to Crown Community Development's 760-acre mixed-use project called The Grove, Kaneland is opposing the development on the grounds that it is being built in a tax increment financing, or TIF, district will limit property tax revenue to the school district. In a TIF district, property taxes from the new development do not go to taxing bodies as they typically do. Rather, the extra or 'increment' taxes created by the development of the property go into a special fund used to pay for costs related to improving the area. It's meant to serve as an economic development incentive. According to an original proposal, 10% of the TIF funds were to go to the village for any improvements it needs to make in the area, but in August, Sugar Grove Village President Jennifer Konen said that Crown had agreed to give another 10% of the funds to be distributed among the other taxing bodies, which could amount to $37 million over the TIF district's 23-year lifespan, according to past reporting. Kaneland is expected to get $26 million of those funds. The original agreement also included payments from TIF district funds to offset the cost of schooling for students living in TIF-supported housing. Kaneland began negotiations with Sugar Grove, the entity that would be disbursing the TIF funds, to create an intergovernmental agreement about the TIF district, according to documents from the school board's Jan. 13 meeting. A final draft of the agreement was presented to the school board in January. It included the stipulation about an additional 10% of TIF funds being allocated to taxing bodies, among other provisions. Now, not satisfied with the terms of the proposed intergovernmental agreement, the school district is considering a new approach: taking legal action against Sugar Grove over the TIF district. 'We're looking at the … both short-term and long-term health of our district,' Kaneland Superintendent Kurt Rohlwing told The Beacon-News on Thursday. 'The health of our district dictates the experience and the education we're able to provide the students of Kaneland. And so, we don't believe that what is proposed is in the best interest' of the school district. Rohlwing characterized the proposed intergovernmental agreement as the village's 'last best offer,' and said legal action was the next possible avenue. On Monday, Kaneland's school board authorized its legal counsel, boutique K-12 education law firm Kriha Boucek, to draft a complaint. While any official legal action must be first approved by the school board, Rohlwing said, this move is the district's latest attempt to fight the TIF district. The Grove is a proposed 760-acre mixed-use development, commonly referred to as the Crown development in reference to its developer, the Naperville-based Crown Community Development, according to past reporting. The developer, through a subsidiary, owns the site of the planned development and 23-year TIF district, located at the intersection of Interstate 88 and Route 47. Plans for the development include nearly 400 acres of residential properties, over 120 acres of commercial development and about 240 acres for a business park, according to past reporting. According to its website, the project could hold as many as 1,500 residential units. As public discussions over the project took place over months and the proposal drew substantial community criticism, a Joint Review Board formed by the village of Sugar Grove reviewed the proposed TIF district and its financial impact on the area in May. It ultimately made no recommendation to the Sugar Grove Village Board. According to a document from the Kaneland superintendent presented to the school board with a timeline of the district's position on the development's TIF impact, the district's legal representation recommended that the district abstain from voting for or against the TIF district at the Joint Review Board meeting, so as to 'allow ease in working with the village of Sugar Grove and allow for more concessions to be given.' Kaneland abstained in the May vote. Despite months of public opposition, however, the Sugar Grove Village Board voted in September to allow the Crown project to move forward. Residents opposing the project have said previously that the development will burden the taxing bodies such as school districts that will have to provide services to the residents and businesses the project draws in without receiving the additional tax revenue the development would ordinarily bring in due to the TIF district, according to past reporting. 'The interest of the (Kaneland) district is intertwined with the interests of our homeowners,' Rohlwing said on Thursday. 'The additional revenue not only … would allow us to provide better facilities, better educational opportunities and experiences for our students, it also would provide us a possible way to alleviate the tax rate on individual homeowners,' saying that, were the development not in a TIF district, commercial and retail properties from the project would provide a greater share of tax money to taxing bodies. Crown Community Development's Jennifer Cowan previously said their goal was to begin work on the site in fall 2025, completing engineering on the first part of the project and obtaining the necessary permits before then. The first lots for the development are expected to be sold and builders are set to start constructing houses sometime in 2026, according to past reporting. The public relations firm representing Crown Community Development did not respond to The Beacon-News' request for comment on Friday. But, even after the Sugar Grove Village Board's approval of the development in September, public opposition has continued. A non-binding referendum on the April 1 ballot will provide residents another opportunity to express their support or opposition to the project. And Kaneland, for its part, is one entity making a final effort to oppose the current TIF plan, and the terms of the intergovernmental agreement with Sugar Grove. 'If they want this incentive, then they need to, the way I see it, they need to invest money back into the community,' Kaneland board president Addam Gonzales said at Monday's meeting. 'And we are nowhere near what my expectations would be for that.' Should the school board approve the legal complaint, which would need to identify the defects in the TIF district, the complaint would then be filed in Kane County Circuit Court, an attorney from Kriha Boucek told the board on Monday. But it could take years to make its way through the courts. Despite the possibility of a legal battle, Sugar Grove, however, does not seem to be going back on its plan for the development or the TIF district. 'While I respect the Kaneland school board's decision and understand their concerns, I stand by the Village Board's approval of the project,' Sugar Grove Village President Jennifer Konen said in a statement to The Beacon-News on Thursday. 'This project creates opportunities for families, children and local businesses while strengthening our tax base and ensuring long-term, sustainable growth that benefits homeowners and the entire community.' But Kaneland doesn't appear to be backing down, either. The school board noted Monday that, since the district is one of the largest taxing bodies affected by the TIF district, they need to be the entity to take the lead in opposing it. 'Who else can fight the village, right?,' school board member Aaron Lawler said. 'I mean, the fire district probably can't, the library district probably can't, the park district probably can't. So it falls on our shoulders.'
