St. Charles Housing Plan Sparks Affordability Clash

One of the last major residential development sites in St. Charles is shaping up to be a battleground over affordability, with city officials and developers at odds over whether new housing should serve middle-income residents or maximize returns.

A pair of proposals totaling roughly $150 million would transform a 29-acre site along the south side of Route 38 and west of Randall Road into a mix of apartments and senior housing. The Daily Herald reported that negotiations have stalled as developers resist calls to include below-market units, setting up a potential showdown as the project heads toward rezoning.

The plan splits the site into two components: “Springs at 38 West,” a 306-unit apartment complex from Continental Properties and BEI Properties, and “Traditions of St. Charles,” a 167-unit senior living facility from the Leo Brown Group. Combined, the developments would bring nearly 500 units to a city where officials say affordability is increasingly out of reach for local workers, according to the publication.

At a recent committee meeting, city leaders emphasized the need for housing accessible to teachers, first responders and municipal employees. St. Charles’ inclusionary housing ordinance requires 10 percent of units be affordable to households earning 60 percent of area median income — a threshold according to the outlet that neither developer has incorporated into current plans.

Rents at Springs are projected to range from $1,636 for studios to $2,671 for three-bedroom units. Incorporating affordable units — such as a roughly $1,070 monthly studio — would create what the development team called a “revenue gap,” undercutting returns for private equity investors backing the project.

Instead, the developers contend that simply adding supply will ease pricing pressures. They also frame the project as a boost to nearby retail along the Randall Road corridor, targeting renters with higher disposable income.

City officials aren’t convinced, as several alderpersons have pushed for on-site affordability rather than fee payments or exemptions, arguing the site represents one of the last opportunities to secure mixed-income housing at scale, according to the outlet. The senior housing developer has requested relief from affordability requirements altogether, citing built-in services and costs.

— Eric Weilbacher