Developer Papanicholas Nets Elk Grove Loan for Ice Rink Project

Elk Grove Village is emptying its net in an aggressive push to assist multifamily developer Nick Papanicholas Jr.’s goal of building a new indoor ice arena on the Chicago suburb’s west side.

The local government is playing a hands-on role, cutting a $27 million, zero-interest loan to the developer, whose firms include local builder Wingspan Development Group and Nicholas & Associates.

The financing — backed by general fund reserves — will support a 72,560-square-foot twin-sheet ice rink complex rising at the northwest corner of Meacham and Biesterfield roads, a site local leaders say has sat stubbornly vacant for decades, the Daily Herald reported. The village approved a 20-year redevelopment agreement and repayment term with Papanicholas, whose firms recently delivered a similar project in Rosemont and operate rinks in Mount Prospect and Vernon Hills.

As part of the deal, Papanicholas is personally guaranteeing repayment. The village also sold him the underlying 9.7-acre parcel for $4.5 million, the same price it paid to buy the property last year, and threw in two retail spaces for $1 each. The developer plans to lease the retail pads to food-service tenants.

Mayor Craig Johnson framed the financing as a catalyst play, pointing to the promise of future sales tax revenue from the project and the long-vacant state of the corner. Johnson said the village “had to take a bold step,” adding that it’s partnering with a proven rink operator rather than an untested developer.

Demolition wrapped this fall on the shuttered Aldi and Staples stores that previously occupied the block. Construction is now underway on the arena’s structure, which will include an 8,800-square-foot second-floor restaurant, a grab-and-go shop, study spaces and a physical therapy clinic.

The price tag for the arena itself is pegged at $28 million excluding land, according to the project budget. Under the loan terms, Papanicholas will submit monthly reimbursement certificates to access funds.

The repayment schedule calls for $800,000 annually over the first five years, rising to $1 million a year in years 6 through 10, $1.1 million in years 11 through 15 and $1.2 million in years 16 through 20, before a final $6.5 million balloon payment. The facility is slated to open in August 2026 and will host youth hockey organizations including Chicago Mission and the Northwest Chargers.

Papanicholas is already busy elsewhere in town: his firms are also behind The Vue, a 287-unit development under construction on Elk Grove Village’s east side.

— Eric Weilbacher