Village of Lake Villa, Illinois

It is a centrally-located downtown Village parcel (approximately 60,000 sq ft) zoned Central Business District (CBD) and currently vacant. The Village is seeking a developer to build a mixed-use project with retail/service space (around 10,000 sq ft) and residential uses above or adjacent.

The project site is a prime downtown location near the Metra station and downtown businesses, this site represents an opportunity to strengthen economic vitality, increase downtown foot-traffic, support transit-oriented growth, and enhance the quality of life for residents.

The Village owns the property and is issuing a Request for Qualifications (RFQ) to identify a qualified developer. Once selected, the Village and Developer will negotiate a development agreement, and the project will move through zoning, permitting and construction phases.

The site is zoned Central Business District (CBD). Under that zoning the site supports development from one to four stories and allows for retail, service, and residential uses.

No. The project site is located within the Village’s established Tax Increment Financing (TIF) District and Business District (BDD). These special financing districts allow the Village to use TIF and BDD funds to supplement eligible public improvements and infrastructure costs associated with the redevelopment—such as utilities, stormwater, or streetscape enhancements. These funds are specifically restricted for redevelopment purposes and are not drawn from general revenues used to provide Village services such as police protection, public works, or day-to-day operations. The Village will continue to review and publicly disclose any financial participation or incentive details as part of the development agreement and approval process.

These impact areas will be studied as the project advances (during due-diligence, engineering design and public review phases). The Developer and Village will work with appropriate consultants and the Village’s community development and public works team to address these matters and seek to minimize impacts to surrounding residential neighborhoods.

A definitive start date has not yet been set. After a Redevelopment Agreement is executed, further steps (zoning, engineering, permitting) must be completed before major construction. Currently, the Village anticipates a Redevelopment Agreement will be negotiated and presented to the Village Board in early spring 2026, followed by the Plan Commission/Zoning Board of Appeals process. Estimated schedules will be posted on this webpage as they are refined, but currently, permits and/or construction is not anticipated until early 2027.

The Village will incorporate design standards, review processes and public input into the selection of the developer and subsequent approval of site plans and architecture as part of the zoning entitlement processes. The Village's Zoning Code establishes architectural design standards for new commercial developments, as well as, the Village Center Overlay District requirements, which ensure that development in the village center of Lake Villa reflects an integrated, pedestrian oriented, mixed use character. Within the Overlay District, buildings are required to be oriented toward the sidewalk and pedestrian connections must be provided between individual sites, the Metra train station, and adjoining residential neighborhoods. The Village’s downtown vision and comprehensive plan provide the framework for quality design and alignment with these community goals.

Residents can attend the open house or public hearing events (which will be posted on this webpage). They may also submit comments or questions at any time to the JM Developer team or Village Staff below.