S
chaumburg is investing heavily in a property swap that could revamp one of its busiest intersections. The village plans to use $10.5 million from tax increment financing (TIF) funds to relocate the Cook County highway maintenance facility and pave the way for redevelopment at Algonquin and Meacham roads, according to reports.

    A crucial step in this plan was Schaumburg's recent purchase of the Hunter Foundry Machinery Corporation property on Hammond Drive for $6 million. This site will house the county's operations, allowing the relocation of the maintenance facility currently occupying the redevelopment area.

    The TIF funds will cover land acquisition, demolition, and construction costs. The proposed redevelopment includes a mix of hotels, retail, and restaurants that could generate up to $14 million in additional property tax revenue for the TIF district by 2038, along with $1 million annually in consumer taxes. Village officials see this project as an opportunity to transform the intersection into a thriving economic hub.

    However, the redevelopment process won't begin immediately due to a lease agreement between the village and Hunter Foundry that will keep the property occupied until late next year. The village won't take ownership of the site until September 2028, leaving several years before construction can start.

    This initiative comes at a time when Schaumburg's office market faces significant challenges, with a vacancy rate of 31.4 percent in the third quarter, up from 29.7 percent the previous year and 22.1 percent at the start of the pandemic.