A historic downtown building fallen into disrepair is to be converted into apartments and commercial space with the help of a $1.7 million economic incentive package tentatively approved Wednesday by the Elgin City Council.

South Grove Holdings LLC plans to create four ground-level storefronts and six second-floor apartment units at 61-65 S. Grove Ave. in a project that’s to cost an estimated $5.1 million, City Manager Rick Kozal said.

The basement level will have a commercial kitchen, meeting room and storage space, and new electrical, mechanical and plumbing systems and a new elevator are to be installed, according to city documents.

City funds from the Central Area Tax Increment Financing (TIF) district will help with the transformation proposed by Kevin Echevarria, a downtown businessman who owns South Grove Holdings, Kozel said. The council will formally vote on the funding at its next meeting.

Adaptive reuse is one of the objectives behind the Central Area TIF, which has been tapped previously to help redevelop downtown buildings. Most recently, the council approved the use of TIF funds for the $4.3 million renovation of the McBride Building on Douglas Avenue, in which the top two floors are being converted into a 26-room boutique hotel.

Councilman Steve Thoren endorsed Echevarria’s plan, saying the use of TIF money for it is in line with other projects receiving similar funding.

“I think it’s at the point where either we’re gonna help him or the building is going to disappear,” Thoren said. “It’s a rather drastic option. But I want to thank you because it’s a great facade, and keeping the downtown’s integrity with a classic old structure is important to me, certainly to many.”

Councilwoman Tish Powell was also enthusiastic. “I’m really excited about this project. This is a big bite to take, as I’m sure you are always aware, but I really appreciate your continued investment in our downtown,” she said.

South Grove Holdings purchased the building for $1 million in September from Cuming Holdings, which spent $740,000 stabilizing the structure and bracing/preserving the facades after a second roof collapse in August 2025. The first occurred in July 2024 under previous ownership.

The building is cordoned off and has anchors to keep it stable, but the roof is visibly missing.

When asked by Councilwoman Diana Alfaro if the city’s Historical Design Committee would have a say in the project, Community Development Director Marc Mylott said it would not because it does not oversee downtown properties.

However, because South Grove Holdings is seeking federal and state historic preservation tax credits to help fund it, “there’s certainly a strong historic component that will be included in this project,” Mylott said.

Echevarria said his company is in the second phase of the tax credit application process.

The building dates back to 1885, with the portion fronting South Grove Avenue being done in an Italianate style. A one-story addition fronting Spring Street was built in 1929. Together, it has about 8,700 square feet.

In the late 1880s, the building was home to small retail businesses like a sewing shop and candy store, according to city documents. At one point it was used as the Singer Manufacturing Co., and later housed, among other things, a bakery, a shoe repair shop, a restaurant, a grocery store and the Elgin Camera Shop, which was one of the longest tenants.

The Rancho Vargas was located there from the late 1990s until its closure in 2010. While it’s been vacant since then, it was added to the National Register of Historic Places in 2014, city documents said.

Gloria Casas is a freelance reporter for The Courier-News.

https://www.chicagotribune.com/2026/02/12/elgin-downtown-building-renovation-tif-apartments/