Algonquin aims to redevelop ‘cornerstone’ of $30 million Main Street transformation

The village of Algonquin is looking for developers to revive the vacant Algonquin State Bank building located in the village’s downtown corridor.

The village hopes that developers will create a “white tablecloth restaurant” on the first floor with office spaces on the second floor, and local officials do not want residential proposals, according to village documents.

The former home of Algonquin State Bank, located at 221 S. Main St., has been vacant since the COVID-19 pandemic lockdown started in March 2020, former Algonquin Community Development Director Jason Shallcross has said. He has since left the village staff.

Algonquin acquired the building in 2021 for $800,000, Trustee Jerry Glogowski said.

The village envisions the property as “a cornerstone in the ongoing transformation of Algonquin’s Main Street corridor,” according to village documents. Developers can renovate the existing building or construct a new two-story building on the site.

Village President Debby Sosine imagines a restaurant with a large window looking out onto Washington Street, which will be used frequently for festivals and events.

“This project reflects our long-term vision for Old Town Algonquin,” Sosine said in a news release. “We’re looking for creative ideas that will enhance the overall experience of Main Street and attract more visitors to our community. The newly constructed Washington Street, with a shared street concept for outdoor events, makes this an exciting opportunity for prospective developers and our residents alike.”

The 5,900-square-foot building, along with 2,500 square feet of outdoor dining space, is for sale by the village, but the adjacent public parking lot still will be owned and maintained by the village, Community Development Director Patrick Knapp said.

A portion of the building predates 1950, and additions were made in 1954 and again in 1975 to create a general store, Knapp said. The village has primed the site for new developers by updating the water line and electricity, along with rezoning the property to Old Town District and permitting outdoor dining. About $20,000 also was spent on removing asbestos from the building, village officials have said. An underground tunnel used by the bank to access the drive-thru was sealed off to prevent future flooding, Knapp said.

More than $33 million has been invested into ongoing downtown Algonquin streetscape and utility improvements to create a “more pedestrian-friendly environment ideal for community gatherings, festivals and outdoor dining,” according to village documents.The Old Town District allows for businesses such as professional offices, retail shops, eateries, studios, residential, churches, breweries and wineries. Car sales and services, gas stations, drive-thru facilities, car washes, storage facilities and tattoo parlors are not permitted in that zoning, according to village documents.

Developer Kopetsky Properties had looked to take over the building for a restaurant and retail stores but walked away in June because of costs exceeding its budget, Knapp said. Kopetsky originally proposed to purchase the building from the village for $1.

An estimated timeline aims to have the Village Board vote on the preferred developer Dec. 17 and to have the developer open a restaurant at the end of 2025 or by spring 2026.

For more information on the request for developer proposals, visit aplusalgonquin.com/RFP. Proposals are due by Nov. 22.