Another developer has backed off plans to redevelop the shuttered Family Square Plaza in downtown Lisle.
In October, a Chicago-based developer put in an offer on the property, located at the southeast corner of Ogden Avenue and Main Street.
Earlier this month, Synergy Construction and Development pulled out of the deal, saying a mixed-use development including residential, retail and public parking could not work on the property.
“This site is a little too tight to accomplish all those goals,” said Phil Domenico, Synergy’s principal owner, who met with village officials last week to share the news. “We just don’t see a path for this.”
In August, another developer, Flaherty & Collins, missed a deadline to show it had financing for its project, which included demolishing the shuttered strip mall and building a 198-unit apartment building with retail space on the main level. Village trustees approved the initial project in 2022 and granted two extensions for Flaherty & Collins to make good on the deal.
Synergy made an offer on the property, owned by Green State Credit Union, just over a month after Flaherty & Collins pulled out of the deal. Within six weeks, however, Synergy came to the same conclusion as Flaherty & Collins.
The strip mall, which has remained shuttered, sits in a tax increment financing — or TIF — district that would give a developer access to up to $10.5 million to help with project costs.
In a TIF district, the amount of property taxes collected by local taxing bodies is frozen during the first year of the TIF. As improvements are made to properties within the TIF, and their values increase, any additional money generated in property taxes goes into a special fund for the municipality to pay for public improvements within the district.
Chicago-based Synergy Construction and Development said there was not enough space for a mixed-use development featuring retail, residential and public parking at the shuttered Family Square Plaza in downtown Lisle.
Paul Valade/[email protected]
Village emails show Synergy was not the only developer interested in the property. In an Oct. 1 email from Green State Credit Union to Lisle Village Manager Eric Ertmoed, the credit union notes it had received two letters of interest in the property and that two other parties had reached out about the site.
Lisle Mayor Chris Pecak says others remain interested in the property.
In addition to the Family Square Plaza, the TIF district includes properties immediately east of the strip mall along the south side of Ogden Avenue. While Synergy has pulled out of the deal to purchase the strip mall, Domenico did not rule out the possibility of working with other property owners within the TIF district to put together a mixed-use development.
“They’re (the village) excited to get something going,” Domenico said. “They just need the right answer there, but it’s just going to have to be bigger.”
Pecak said the village has reached out to Green State Credit Union to see what the next steps may be. Pecak added he has always maintained that he wants a “cohesive” development within the TIF district, but stressed the village needs to be respectful of other property owners’ rights.
“I’m certainly willing to have conversations with anyone who is interested,” he said.