What’s up with Wheaton apartment project? Developer could soon begin site’s demolition

When the Wheaton City Council weighed in on plans for a major apartment complex, the project was hailed by one former council member as a significant investment in the downtown.

Developer Banner Real Estate envisioned 300-plus apartments along the south side of the train tracks running through downtown. The council at that time agreed to allow the construction of a mixed-use building across the city block bounded by Liberty Drive on the north, Hale Street on the east, Willow Avenue on the south and Wheaton Avenue on the west.

More than 30 months later, the project has yet to get off the ground, but council members have signed off on a resolution directing city staff to extend again a building permit — with a list of conditions. The resolution stipulates that demolition “shall be actively underway” by June 24, and completed by the start of August.

“I think they’ll be done before that time … That’s what they’ve indicated to me. They’ll probably be done before Aug. 1,” City Manager Mike Dzugan said Tuesday.

He also told the city council this week he believes that Banner is going “to move forward very quickly to demolish” the buildings on the properties. Banner executives did not immediately return a request for comment.

“I appreciate them working with us to try to get this project moving along,” Dzugan said.

A corner brick office building formerly occupied by a bank and other nearby structures have been boarded up within the block. The building at 208 S. Hale St. — housing Egg Harbor Cafe — and its parking lot may remain as long as the tenant continues to operate from it, according to the resolution.

The candidates for the city council seat representing Wheaton’s North District — incumbent Scott Brown and challenger Syed Hussain — also addressed the status of the apartment plans during an interview with the Daily Herald Editorial Board last month.

“It kind of comes (to) the point where you can realize that the economic window for a project like that probably gets a little squeezed as interest rates have gone up,” Brown said. “Their economic modeling may have been stretched a little bit. But the reality to it is they own the dirt. They own the land. They’ve gotten a lot of support from the city council.”

Brown said the surrounding downtown community has “a lot to offer a developer like Banner.”

“I think bringing additional housing into our downtown area, it’s really important, and perhaps a little overdue even,” Hussain said. “We have so much potential with folks getting on the train commuting, as everyone is going back to (the) office and just making use of that” space.

About a year ago, the city issued a conditional building permit for the multifamily development. Last August, the city received a request from the owner of the properties seeking a 180-day extension of the issued building permit, as permitted by city code. The city building director extended the permit to March 24. Earlier this month, the owner requested a second 180-day extension.

“I have had several conversations with the owner, Banner, who have agreed to the conditions that we’ve set forth in the resolution,” Dzugan told the council.

Demolition applications must be submitted by April 24, although the owner of the properties has already submitted some of that material.

A payment of $250,000 to the city for the purchase of the public alley — running east-west mid-block between Wheaton Avenue and Hale Street — must be made at the time of the demolition permit issuance.

Mayor Phil Suess also thanked Banner “for working with us on this. This is something that needed to be resolved,” he added, “and we appreciate your efforts in getting that done.”

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