Algonquin State Bank building could have restaurant, commercial space

The vacant Algonquin State Bank could be redeveloped into a building that would have a restaurant and up to two other businesses, according to village of Algonquin officials.

A redevelopment plan under consideration would expand the building to 5,200 square feet, add an outdoor patio space and overhaul its 4,000-square-foot basement.

Kopetsky Properties proposes to renovate the building’s facade with brick, stone, board panel and “decorative Victorian elements,” according to village documents.

Kopetsky Properties Owner Paul Kopetsky said one possibility that’s been discussed would include a tap room. He also said that an existing Algonquin-based restaurant has a “significant interest” to expand and lease the majority of the space.

Kopetsky Properties estimated the building, which the village bought in 2021, to be valued at about $700,000 and estimates the cost of the renovation to be about $835,000, according to village documents. The developer proposed to buy the building from the village for $1.

The Algonquin State Bank, located at 219 S. Main Street, has been vacant since the COVID-19 pandemic lockdown started in March of 2020, Algonquin Community Development Director Jason Shallcross said.

The village acquired the building in 2021 for $800,000, trustee Jerry Glogowski said. About another $20,000 was spent on removing asbestos from the building, Shallcross said.

Village board members voted 5-2 in favor of the pre-development agreement at a preliminary meeting on Tuesday. The village board is expected to take a final vote on the pre-development plan at its meeting next week.

“All this does is set the clock for both staff and the developer to work together to come to an agreement on a formal redevelopment agreement,” Shallcross said.

Kopetsky Properties is a property developer based in Algonquin. The company remodeled Makity Make, Mane hair salon and Fishman Miller PC all on South Main Street in Algonquin.

Trustee John Spella opposed the agreement and said he did not think that selling the building for $1 was a good option for the village.

“I don’t like $1 deals,” Spella said. “But I don’t think a dollar deal with non-payment of permit fees is fair. I don’t think we would get our money out of it quick enough.”

Shallcross said the proposal is the village’s best option due to the dramatic changes in interest rates and the economy since the village bought the building.

“This proposal is the most financially beneficial to the village out of those that were submitted,” Shallcross said. “And it’s not close either.”

Other developers were turned away because of proposals to create four or five-story apartment buildings, which village officials did not think fit with the downtown feel, Shallcross said.

Village President Debby Sosine said the long-term investment Kopetsky Properties is willing to put into the building while meeting the board’s desires makes sense to take the $1 deal.

The building is located in a special taxing district, known as a tax-increment financing district, or TIF.

A TIF is a financial tool that allows villages to earmark certain property taxes for development, including through incentive packages for developers or for new infrastructure or public amenities within the area. It works by freezing the property values local taxing bodies collect taxes off of; revenue collected off any new value goes to the TIF.

Typically, a TIF lasts for a duration of 23 years.

“For us to get what we want, we have to give,” she said. “And that’s a hard egg to swallow here.”

The adjacent parking lots on the property would still be owned by the village, which allows the village to have flexibility for future developments, Kopetsky said.

“Having a vacant building doesn’t do anyone any favors.” Algonquin Village Manager Tim Schloneger said.

Algonquin Village Board will vote on the pre-development agreement on Tuesday, Shallcross said. From there, a finalized redevelopment agreement is expected to be confirmed by the village and developers by Jan. 16.