Batavia endorses $24M affordable housing development near Fox River

Property with a view of the Fox River in Kane County isn’t often affordable, but Batavia is in the early stages of reviewing a proposal for a development that would give low-income renters one of the best views around.

A former quarry in Batavia has caught the eye of developers, who have submitted plans to convert the vacant site just east of the Fox River into a three-story, 72-unit, affordable apartment building called The Residence at River Point.

The $24 million project would overlook Clark Island Park and the Fox River from across the street on the east side of Route 25.

The Fox River Affordable Housing Corp., a nonprofit development entity of the Housing Authority of Elgin, submitted plans for the project in March.

While the city has not begun its formal review process of the development plans, petitioners are seeking approval of a TIF funding agreement for the project and a letter of intent to consider the project in the meantime.

Developers are seeking $1.2 million TIF funding from the city to purchase the property at 400 S. River St. (Route 25), as well as the city’s endorsement of their efforts in seeking additional financial aid.

Batavia City Council members reviewed the request during their May 13 Committee of the Whole meeting.

The funding would come from TIF District 3, established in 2005 to drive downtown development.

Housing Authority of Elgin Executive Director Martell Armstrong represented the petitioners at the May 13 meeting. He said they intend to send the city’s letter of intent to the Illinois Housing Development Authority in support of their requests for low-income housing tax credits.

Armstrong said if all goes as planned, they expect to purchase the property by the end of this year and begin construction by November 2026.

As proposed, units in The Residence at River Point will be reserved based on income levels of households in relation to the area median income (AMI).

Plans call for 18 units to be reserved for households making 30% or less of the AMI, 38 will be reserved for households making 60% or less of the AMI, and the remaining 16 units will be available to anyone making 80% or less of the AMI.

The AMI for a household with two adults in Kane County is estimated at $96,000, according to the Chicago Department of Housing.

Mayor Jeffery Schielke said he has seen a lot of different developers come in and “kick the tires” on the quarry property, and while he was in support of the concept, he raised concerns about the limestone foundation of the site being stable enough to support a large development.

Alderman Alan Wolff stressed the need for affordable housing developments in Kane County, saying that very few concepts like The Residence at River Point are being built anywhere around Batavia.

“I think this is something that we need,” Wolff said. “When you have employees that work in your own city, your own park district, your own library, and you can’t have them live in this town, that’s a tough thing to take.”

One person spoke during Pub Comment after the discussion.

Batavia resident Lawrence Scholl lives just east of the quarry site and had his own concerns about the limestone foundation of the site. He worried that construction work on the quarry site could shift the foundations of nearby residences and suggested that stabilizing the site could create large, unexpected expenses.

Committee members recommended approval of the TIF funding commitment in a 12-1 vote. Ward 5 Alderman Jim Fahrenbach cast the sole no vote, and Ward 2 Alderman Tim Lanci was absent.

The city’s letter of intent does not obligate the city to approve the project, which will still have to go through regular permitting channels before plans are reviewed by City Council.

The permitting process, which would include rezoning the property, is expected to take several months, and will be reviewed next by the Plan Commission.