February 22, 2025
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Jeffers scales back Kankakee housing project

By Lee Provost
The apartment project proposed by J. Jeffers & Co. as seen from the 300 block of South Dearborn at the intersection of East Station Street in downtown Kankakee.

This is an earlier version of the apartment project proposed by J. Jeffers & Co. as seen from the 300 block of South Dearborn at the intersection of East Station Street in downtown Kankakee. Some modifications have been incorporated to the design of the now-47-unit project. (Provided by J. Jeffers & Co.)

KANKAKEE – Although a downtown Kankakee housing development has been scaled back, the project is once again nearing its start.

Proposed about six years ago and having gone through various developmental agreements – first in May 2021 and revised in August 2023 – the developer for the planned market-rate Kankakee apartment complex is making another run to finally begin the project.

Milwaukee-based developer Josh Jeffers has significantly reduced the once-planned 92-unit, four-story development to a 47-unit, three-story brick complex.

The location within the 2nd Ward remains the same. The project is to be erected at the southwest corner of South Dearborn Avenue and East Station Street, immediately east of the former Midland States Bank property, 310 S. Schuyler Ave.

The $19.3 million project will consist of 30,580 square feet of residential space to be divided into studio, one-bedroom and two-bedroom units.

The studio units would be about 600 square feet and rent for an estimated $1,200 a month. The one-bedroom units would be 700 square feet and rent for $1,500. The two-bedroom dwellings would be 1,050 square feet and rent for $2,100.

The exact square footage and rental costs still are being finalized.

The planned underground parking garage has been removed from the project, as well as a large second-floor balcony and gathering location.

However, a rooftop deck and a ground-floor community room have been incorporated into the plan.

But before anyone can think about signing a lease or planning a rooftop party, the long-languishing development has to actually break ground.

At Tuesday’s Kankakee City Council meeting, council members approved a revised tax increment financing agreement with J. Jeffers & Co., JD Financing and East Station Street LLC.

The agreement was passed by an 8-0 vote. Two council members, Republican Lance Marczak of District 4 and Democrat Mike O’Brien of District 2, abstained because of potential conflicts of interest.

Brian Loftin of J. Jeffers attended Tuesday’s meeting.

A key point of the financing agreement, Mayor Chris Curtis said, was the added “hard” start dates for the project.

By that phrasing, Curtis meant that there are several marker dates the developers must meet in order for the agreement to remain valid.

If the developers fail to reach those milestones, the city could render Jeffers in breach of the agreement. If that were to happen, the developer would be responsible for the repayment of a $1 million incentive the city approved a couple of years ago.

Based on the new agreement, the development, which needs to go through the zoning process again as a result of its changes, must have its zoning no later than June. 16.

Then, by Aug. 15, final designs must be submitted. By Oct. 15, building permits must be in Jeffers' possession. Finally, by Dec. 31, 2026, the complex must be ready for occupancy, meaning residents can be moving in after Jan. 1, 2027.

Curtis said the fact that the project is smaller than originally planned is not an issue.

“I’d rather it be successful. I feel better with it being small and successful,” he said.

Second Ward Alderman David Baron said he “definitely” believes this is a good project. He also was pleased that the city scaled back its incentive package.

“We are trying to reach a path forward. ... This is still a form of housing that doesn’t exist anywhere else in the county,” he said regarding the uniqueness of the development.

He also highlighted what he labeled the “walkability” and “bikeability” that the location offers prospective occupants.

“In my mind, this is a still a very viable project,” Baron said.

The project also is dependent upon the state’s expansion of a River Edge Redevelopment Zone incentive district to include Kankakee.

Operated through the Illinois Department of Commerce, the district would help lessen some developer out-of-pocket costs. The district is expected to be certified and in place by July 1, Curtis said.

The legislation will add Kankakee to the list of riverfront municipalities that can offer tax incentives to investors who are interested in the development of properties adjacent to rivers in Illinois.

Although the apartment portion of the project has grabbed the public’s attention, it actually is the development’s second phase.

The project’s first phase is the redevelopment of the former Midland States Bank property. The bank property will be developed into a business incubator.

Jeffers' leadership has said it has a tenant who has committed to using a significant portion of the bank’s ground floor.