McHenry gets one proposal for Central Wastewater Treatment Plant redevelopment, continuing to discuss options

McHenry officials are continuing to discuss how to approach the redevelopment of its defunct Central Wastewater Treatment Plant site.

The city earlier this year issued a request for proposal in hopes of identifying a future use for the 7.2-acre site at 3302 Waukegan Road on the Fox River. The property is zoned for downtown commercial use, and there already are boat slips on the site, according to city documents.

The city received one proposal in response to the RFP but want to continue to explore its options. Deputy City Clerk Monte Johnson wouldn’t provide details on the existing proposal, citing confidentiality exemptions in Illinois Freedom of Information Act regulation.

“They are looking at alternatives and deciding how to move forward,” Johnson said. “[The proposal] is still confidential because something could still be done with it.”

The city has not publicly discussed results of the RFP but talked about how to market the property at a recent City Council meeting.

The city decommissioned the plant in 2018 after an expansion of the South Wastewater Treatment Plant was complete.

An appraisal of the site was completed in October. The land value of the property is $1.2 million, and the boat slip value is $223,000, according to the appraisal. Demolition of buildings on the property would cost between $1.5 million and $2 million, according to city documents.

Economic Development Director Doug Martin said he had been approached by a developer interested in submitting a proposal for possible residential redevelopment. The developer didn’t submit the plan because it seemed financially unfeasible, Martin said.

“They had a hard time making the numbers work,” Martin said. “I believe there is something out there for this property but it has to be the right developer and at the right time.”

City officials are considering hiring a Realtor to help market the property nationally.

“I think we need to go broader than just McHenry people,” McHenry Mayor Wayne Jett said. “This site is going to take a big developer and big dollars.”

Ward 7 Alderwoman Sue Miller said she liked the idea of a residential development for the site but also wanted to keep options open.

“There are a million ways to redevelop a property,” she said. “We realize its going to be tough spot. We realize its going to be an expensive redevelopment. We just have to be open to the opportunities that come but we need to make sure the developer is financially prudent enough to understand the costs.”