Elgin plans to pitch in $250,000 more than anticipated to bring a housing development for artists to its downtown.
While some city officials expressed concern over the growing financial contribution to the project, ultimately all councilmen agreed making sure the project comes to fruition is in the city’s best interest.
Minneapolis-based non-profit Artspace plans to transform the building at 51 S. Spring St., which formerly served as Elgin Community College’s Fountain Square campus, into 55 affordable housing units ranging from efficiencies to three bedrooms.
The units will be rented to a variety of visual artists, screen writers, actors and musicians. The $14.5 million project also includes creating gallery space, a community room and outdoor plaza where the public can see the artists’ work on display. Artspace has completed 28 such projects around the country.
Elgin already pitched in by contributing $757,500 to the project and by donating land it swapped with Elgin Community College.
However, some of Artspace’s other funding sources totaling $800,000 fell through. After a handful of efforts to make up the shortfall, it still remains in need of $250,000.
“We’re within 30 days of closing and we have exhausted every resource we can,” said Heidi Kurtze, director of property development for Artspace.
She promised it would be the group’s final request.
However, Councilman John Prigge expressed concern over the additional funding.
“I was sold on it,” he said of the project. “I just get scared with the possibility of saying now well it was a good idea and now you’ve got to pony up 250 grand.”
However, the majority said they would rather contribute $250,000 than see the project not happen and risk the building staying vacant.
“That would be made an eyesore,” Councilman Robert Gilliam said. “By putting this new facility up now we’re looking at trying to bring our downtown back and making it more viable.”
Others also pointed out the money, like the majority of the money the city already has contributed, will come out of tax increment financing district funds, which must be used for improvements to the district.
“Based on the estimates that this is going to generate an additional $1.3 million … in tax increment with this project not to mention the sales taxes that are reasonably expected to be generated and just the aesthetic and property value increase to the surrounding neighborhoods I think this is a worthwhile use of our TIF funds,” Councilwoman Anna Moeller said.
Councilmen ultimately voted 7-0 in favor of the additional contribution and could take a final vote at their next meeting.
Construction is expected to begin at the end of the month. The city expects the project to generate 171 construction jobs.
