City Of Elgin Advances Downtown Redevelopment At 61-65 Grove Ave

ELGIN, IL (Feb. 13, 2026) — The City of Elgin is moving forward with a redevelopment agreement to transform the long-vacant building at 61–65 S. Grove Ave. into a mixed-use development in the heart of downtown.  

At its Feb. 11 Committee of the Whole meeting, the Elgin City Council expressed unanimous support to move forward with a redevelopment agreement with South Grove Holdings, LLC, advancing plans for the project. The agreement is anticipated to be officially adopted at the Feb. 25 City Council meeting.  

The proposed project by South Grove Holdings, LLC, would convert the historic two-story structure into four ground-floor commercial spaces and six apartments on the second floor. Total redevelopment costs are approximately $5.1 million, with up to $1.78 million in Central Area Tax Increment Financing (TIF) assistance proposed to support the project.  

City officials say the agreement leverages Elgin’s economic development tools to help rehabilitate vacant and deteriorated downtown properties while encouraging private investment.  

“This redevelopment reflects Elgin’s commitment to strengthening our downtown and preserving our historic buildings,” said Marc Mylott, community development director. “By partnering with private developers, we are creating new opportunities for businesses, residents and the community as a whole.”  

The building has experienced significant structural damage, including roof collapses in 2024 and 2025. South Grove Holdings has already invested more than $740,000 to stabilize the structure and preserve the historic façades along Grove Avenue and Spring Street.  

Plans call for a fully accessible building with an elevator, new building systems, and updated storefronts and windows. Three of the six apartments, facing Spring Street, would include private rooftop patios.  

The redevelopment agreement includes fee waivers, expedited permit review, and milestone-based financial assistance. Construction is expected to begin later this year and be completed within 18 months of permit issuance.  

Located near the Fox River and downtown shops, restaurants and public parking, the project supports Elgin’s continued investment in its downtown as a hub of growth and opportunity.

 Media Contact
Josie Beecher-Crotty
Communications & Engagement Manager
(224) 407-0293
josie.beecher-crotty@elginIL.gov
elginIL.gov