Michigan Developer Gets its TIF

By Kevin Robinson in News on Mar 11, 2010 4:20PM

Michigan developer Village Green Companies got approval (finally) from the Chicago Community Development Commission for $34 million in TIF funding for a Loop apartment development in the beleaguered former Steuben Club Building. That's more than four times the funding initially approved in 2006, when the project was estimated to cost $79 million. Since then the project cost has escalated to $139 million.

The Department of Community Development told Crain's that “the renovation will create a bustling mixed-use building that will attract residents and customers, be a major generator of tax revenues and preserve the historic character of the area,” in a press release. The Farmington Hills, Michigan-based developer has had significant trouble lining up financing for the project since the credit crisis of 2008 - 2009, and has turned to public subsidies to finance the job. Along with TIF funding from the city, Village Green is relying on $40 million in tax-exempt bonds issued through the Illinois Housing Development Authority and nearly $37 million in tax credits. The property will feature 310 units, 20 percent of which will be set aside for people with incomes of no more than half of the area's median. A resturaunt, fitness spa and retail space are also planned for the development.