B
radford Allen, a commercial real estate firm, has secured public funding for a $130 million residential and retail development in Arlington Heights. The village approved $17.8 million in tax increment financing to support the construction of an eight-story apartment building with 301 units and 26,000 square feet of street-level retail at the town's southern gateway. The project will kick off a four-part plan to reshape 16 acres near the Jane Addams Tollway over the next eight years.

    The development site, located at the southeast corner of Arlington Heights and Algonquin roads, is vacant following the demolition of a five-story office building and several commercial structures. Groundbreaking was delayed until public funding was secured, with Bradford Allen's executive managing director stating that "time is money." The firm will not receive payments until the project is complete.

    The village has agreed to disburse incentives in three stages: $12.9 million upon final occupancy, $2.9 million 18 months later, and $2 million to cover construction interest. However, if the project's internal rate of return falls below 11.42 percent, the second payment may be reduced. The public subsidies are crucial to making the project financially viable.

    Under the agreement, Bradford Allen must pay over $900,000 in impact fees to local taxing bodies and rent 30 units at affordable rates to those earning 60 percent or less of the area median income. Construction is expected to start by October and be completed by July 2026.