Plans to upgrade Algonquin Commons could come with $90 million price tag

Many storefronts at the Algonquin Commons shopping center have sat vacant over the years, and while several remain empty, a few spots feature signs promising something new coming soon.

“A lot of stuff is gone,” said Pingree Grove resident Cindy Giancaspro, who was out shopping at the mall with her husband, Dominic, Thursday afternoon. “It could be a nice section. They need to do something.”

The shopping center’s owners plan to not only fill the storefronts but add several new amenities and entertainment venues as part of a $90 million proposal set to be considered by the Village Board at its meeting Tuesday.

If approved, the goal is to break ground in the summer and have a 24-month construction time, Algonquin Community Development Director Jason Shallcross said.

It’s been nearly two years since Algonquin Commons at 1900 S. Randall Road in Algonquin was purchased by California-based Red Mountain Group Inc. and with occupancy up and the new plans coming soon, village officials said they are optimistic about its direction.

However, changes haven’t happened as quickly as originally envisioned due to the various economic challenges developers have been hit with in recent years, including inflation and supply chain issues, Algonquin Village President Debby Sosine said.

When Red Mountain Group first purchased the complex, the investment firm announced plans to invest $30 million into the site.

Last year, the company announced a “substantial investment” of $90 million to transform the center into an entertainment and shopping venue, the Daily Herald reported. Shallcross said that new figure is higher than the $70 million originally projected, because of changes to the plan, inflation and supply chain issues.

To help cover the increasing costs, Red Mountain Group has asked the village for incentives, Shallcross said. Part of the ask stems from what the project calls for, including several public amenities.

Those potential new amenities include a new playground and a green space to host outdoor events, which will be centered around a 20,000-square-foot, two-story venue named “The Link.” The new venue will be home to restaurants and entertainment, and offer a stage that can be converted to both an indoor and outdoor spot, Shallcross said.

The plans also include some infrastructure changes, including expanded parking, pedestrian upgrades and relocated retention ponds.

“I’m really excited to see the renewal of the shopping center. It’s been depressed for a number of years.”

—  Algonquin Village President Debby Sosine on the future of Algonquin Commons

Those plans were pitched as a concept more than a year ago, Shallcross said, and after adding some of the infrastructure changes, they will be up for a final vote at the Village Board meeting Tuesday.

The village is also still negotiating with Red Mountain regarding potential incentives, Shallcross said, declining to provide details as to what the incentives package might look like. There is no set date on when such a package will be voted on, but it would come before ground breaks in the summer.

The upgrades are the centerpiece of the future for the site, but are not the only changes. When Red Mountain took over the mall, the center had an occupancy rate of about 75% – well below the village’s average at the time. It now sits above 90%, with some places expected to open shop later this year, Sosine said.

Some of those shops include Fresh Market, pOpshelf, Kids Empire, Five Below and a health and wellness center called The Oasis, a Red Mountain representative said. Others that have opened recently include Barnes & Noble, XSport Fitness, Tap House Grill and Ashley Furniture.

Still, much work is left to be done, Sosine said, with internal upgrades needed at some of the stores. The hope is the improvements overall will help make the Commons a destination for entertainment rather than just shopping.

The plan also seeks to bolster shopping and dining through a variety of events. In the past, officials with Red Mountain have said they want to offer televised sporting events, outdoor movie nights, outdoor dining and other holiday events.

Algonquin Commons – with roughly 600,000 square feet in space, more than 60 shops and seven dining options – was built in 2004. It was foreclosed on in 2013 as part of a $110 million lawsuit.

Over the next several years, it lingered in receivership, meaning that any lease that needed renewal had to go before a judge – something village officials said drove vacancies higher.

It exited foreclosure through Red Mountain Group’s purchase.

“I’m really excited to see the renewal of the shopping center,” Sosine said. “It’s been depressed for a number of years.”