As representatives of the Waukegan Community Development Partnership and the city continue negotiations over a proposed $315 million downtown redevelopment project, a member of the partnership is developing one of the parcels on his own.
Starting with the former YMCA on Clayton Street, as well as a one-time combination restaurant and office building on Genesee Street, the development team revealed in March it was attempting to buy and redevelop the buildings into multiuse partnership projects.
With the former YMCA still under contract, the owner of 38 North Genesee Street grew impatient waiting for the partnership to close, Mikki Schuk, a member of the partnership team, decided to buy it himself. He took title to the building in September and went to work.
“I’m not going to sit and wait,” Schuk said. “I’m going to do it myself, brick by brick. Downtown Waukegan is going to come to life again.”
Schuk is in the process of getting the ground floor ready for a commercial tenant, and obtaining building permits from the city to put six luxury apartments on the second and third floors of the building at 38 North Genesee St. in downtown Waukegan.
Owning and renting upscale and luxury dwellings in downtown Waukegan is not new to Schuk. In the last 25 months, he has renovated four downtown buildings, putting seven luxury units in two and 16 upscale apartments in the other pair. He remains part of the development team.
At a special meeting of the Waukegan City Council in March, members of the partnership told the council their long-term goal is putting 700 residences, 70,000 square feet of commercial space and a park downtown. They heeded the advice of starting with the two properties.
Sam Yingling of New Century Real Estate and another member of the development team, said Tuesday the group started meeting with city officials 18 months ago. With the city’s downtown in a tax increment financing district (TIF), it presents an opportunity to help finance the effort.
Yingling said the partnership and city officials are discussing how much money the city might use from the TIF to help finance both the initial phase of the project and the overall development. Funds from the TIF will supplement bank financing and cash from the partnership.
“We’re discussing with the city ways they can help initially make the project sustainable through the TIF,” he said.
Confirming the negotiations are ongoing, Nia Simone, the city’s public relations specialist, said Wednesday “We are still amidst negotiations, so we are unable to comment officially at this time.”
Like he did with a building he renovated at 218 Washington St. just over a year ago, Schuk said he plans to do sufficient work to make the ground floor of 38 North Genesee prepared for a commercial tenant, whether it is a restaurant, a bank, a retail business or another type of entity.
“I’m going to get the ground floor ready for a commercial user,” he said. “I’m going to put in new awnings and storefront windows. We’re going to fix the bricks and limestone.”
On the second and third floors, Shuck said he is turning the one-time office suites into a pair of two-bedroom, 720-square-foot apartments he plans to rent for $1,500, two 600-square-foot one-bedroom units for $1,350 and a 520-square-foot studio for $1,150.
“They’ll have granite countertops, stainless steel appliances and hardwood floors,” he said. “There will be tile floors in the bathroom and kitchen.
Shuk said the 23 apartments he owns in downtown Waukegan are all rented.
