"The project acts as a catalyst for further development," Stone says. "It develops a difficult site." The tax increment financing proposal was recently endorsed by the community development commission.

The developer, California-based JJJ Properties, Inc., also is working with a smaller lot because of the widening of Lincoln Avenue, Stone explains. In addition, JJJ Properties is setting aside four ground-floor units for buyers qualifying under the city's affordable housing initiative, and has agreed to add a landscaped "green roof" to the top of the building. As it is, the developer can expect a 3.9% rate of return on the project with $1.1 million in tax increment financing, Stone says.

JJJ Properties acquired the 1,500-sf restaurant and 10,000-sf site near Peterson Avenue in 2002 for $598,000, financing the acquisition with a $420,000 mortgage from Charter One Bank, according to property records. Despite being based in Southern California, JJJ Properties' portfolio includes a commercial building at Elm and Chestnuts streets in the North Shore suburb of Winnetka, which it developed in 1981.

One-, two- and three-bedroom units will be priced from $219,000 to $314,900, although the affordable units will be offered at $156,000.