ALGONQUIN, IL-This quaint suburb along the Fox River northwest of Chicago will be able to offer commercial property owners in its Downtown business district low-interest loans to fix their building facades. However, some property owners fear the new Downtown business improvement district may be the precursor of eminent domain proceedings against some of them.

Sensitive to those concerns after hearing from property owners at two public hearings, the ordinance passed by trustees Tuesday night contained to reference to eminent domain. Village officials contend that while the new improvement district gives them no additional eminent domain powers, they already have some by virtue of state law.

The sole benefit of the improvement district, village officials say, is the ability to provide low-interest loans to commercial property owners, primarily along Main Street, the main north-south thoroughfare in the suburb. Community Development Director Jeffrey J. Mihelich tells the village is working with a handful of local banks on a program that would provide loans up to $50,000 at an interest rate “two to three points below prime.” The village would buy down the interest rate on the loans, which would be payable over five to 10 years, he adds.

“This is our effort to try to help out these businesses,” says Trustee Robert M. Smith. “It doesn’t do anything more than that.”

Village officials received a petition with 100 signatures in support of the Downtown business district in addition to supportive e-mails.

Property owners’ fears stem from a recently accepted comprehensive plan for Downtown prepared by Teska Associates. Some business owners mentioned specific items in that plan in objecting to the business improvement district. However, trustees say the comprehensive plan serves as a guideline, allowing them to “pick and choose” specific recommendations.

“I think there’s some general confusion about the revitalization plan,” says Trustee Constance R. Donner. “It has not been adopted. It has been accepted. That means we can pick and choose from it.”

“There has to be a certain amount of trust that we’re going to be able to work together,” Smith adds.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper


GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.