TO: Mayor and City Council
FROM: Dustin Anderson, Director of Community Development
SUBJECT:
title
Ordinance Approving the Fourth Amendment to Development Agreement for Senior Suites of Joliet, LLC Building at 215 N. Ottawa Street
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BACKGROUND:
On March 15, 2004, the City of Joliet and Senior Suites LLC entered into a Development Agreement, authorized by Ordinance No. 14605, for the redevelopment of 215 N. Ottawa Street (the former YMCA building). The project resulted in the creation of ninety (90) rental units, including eighty-four (84) age-restricted affordable units, which are required to remain affordable through 2037. Partial funding for the project was provided through the City Center Redevelopment Project Area - TIF District No. 2.
The original agreement awarded up to $3,000,000 in TIF increment rebates or for the life of the TIF, which was originally set to expire in 2023. However, the life of the TIF was extended an additional twelve (12) years and is now set to expire in 2035. The Development Agreement has been amended three (3) times previously to:
1. Adjust the initial project timeline (April 4, 2005 - Ordinance No. 15060);
2. Increase the allocation of HOME funds (August 15, 2006 - Ordinance No. 15633); and
3. Permit the loan of HOME funds to be secured by a third-party mortgage (September 19, 2006 - Ordinance No.15671).
Senior Suites of Joliet, LLC is requesting a fourth amendment to extend the existing TIF agreement by five (5) years. The proposed extension would allow the developer additional time to pursue financing opportunities with the Illinois Housing Development Authority’s (IHDA) Low-Income Housing Tax Credit (LIHTC) programs. Securing these resources would enable the developer to stabilize the project and undertake approximately $9 million in capital improvements to modernize the residential units, common areas, and building systems.
On October 22, 2025, the Land Use & Economic Development Committee voted to recommend approval of the proposed amendment to the full City Council.
CONCLUSION:
To date, the project has received $1,463,403.86 in TIF rebates. Approval of a five-year extension to the agreement is projected to generate approximately $470,000 in additional TIF assistance.
The proposed extension would preserve 84 age-restricted affordable housing units within a key downtown Joliet building. It would also provide the developer sufficient time to apply for IHDA funding, which could extend the project’s affordability covenants for an additional thirty (30) years or more. In addition, the developer anticipates investing approximately $9 million to modernize the building.
RECOMMENDATION:
recommendation
Based on the above, it is recommended that the Mayor and City Council approve an Ordinance Approving the Fourth Amendment to Development Agreement with Senior Suites of Joliet, LLC Building at 215 N. Ottawa Street.
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