Village Approves Canopy Hill Development Agreement

After several years of planning and public meetings, the Union Grove Village Board on March 1, 2021 approved an agreement with Bear Development to develop Canopy Hill, a 160-acre multi-use housing development along U.S. Highway 45, across from Union Grove High School. The development will consist of 188 single-family lots, 60 duplex two-story condominium units, 8 ranch condominium units, 50 senior housing units, 60 multi-family residential units and 18 acres of parkland. The total project is anticipated to have a valuation of $112.8 million.

Originally proposed in 2007, Canopy Hill was forced to undergo delays due to the economic recession. Around the time of the original proposal, the Village invested $1.8 million in utility improvements to support Canopy Hill – these improvements were installed during the reconstruction of U.S. Highway 45. Canopy Hill was reintroduced in 2019, and Village officials have been working with the developer to encourage a development that would add a desired mix of housing and open space, while enhancing the long-term economic vitality of the community.

 “It has been my commitment to our residents, the Village of Union Grove and myself that I would continue to work on a solution to solve the debt that was taken on in 2008 for the infrastructure that was installed for the original Canopy Hill plan that was abandoned by the developer,” said Village President Mike Aimone. “This new development agreement not only solves for the debt repayment within Tax Incremental District Number 4, but also differs by offering a much more diversified housing stock with ample green space and connectivity for pedestrians.”

When Canopy Hill was reintroduced in 2019, the Village held a series of public meetings and presentations to gain feedback from community stakeholders. During those meetings, many participants expressed interest in a greater mix of owner-occupied housing for the development. Village officials proceeded to work with the developer on creating additional housing options to supplement the multi-family rental housing, including ranch and two-story condominiums. The revised development plan includes a healthy mix of owner-occupied housing and multi-family rental housing, both of which are key to the success of the project. “The inclusion of multi-family units was necessary to help achieve the goal for the debt repayment,” said President Aimone. “We went through discussions and negotiations and were able to reduce the number of multi-family units from 320 to 60.”

The Village also heard concerns from neighboring residents regarding the potential impact of development on drainage in the area. In response to these concerns, the developer produced a storm water management plan consisting of four storm water ponds designed to route all proposed runoff to four ponds, where 80% of total suspended solids will be removed. The proposed peak storm water flows from the developed site will be less than flows from the existing site.

Highlights of the Canopy Hill development include the following:

• The ranch townhomes and multi-family buildings will be constructed within Tax Incremental District (TID) Number 4, generating approximately $9.4 million in tax increment that will help reimburse debt incurred from the water and sewer utilities in 2008.
• 163 single-family lots, 60 duplex townhome units and the senior living community will be developed in a newly created TID #7. The developer will not receive any up-front incentives but will be reimbursed for the costs of infrastructure from future tax increment generated by the development (up to $22.4 million in reimbursement of verified infrastructure costs).
• 25 single-family lots will be developed outside of any tax incremental district, generating approximately $10.6 million in assessed value that will go directly onto the tax roll.
• The developer will donate 18 acres to be used for public parkland that will include a Village-approved trail system constructed by the developer.
• The development will contribute approximately $1.9 million in impact fees and connection charges to support future utility needs and improvements to parks, library and fire department.
• The development will be conditioned upon Village approval of a storm water management plan and traffic impact analysis.
• The construction of the development will take place with a phased buildout over the course of approximately eight years.

Ground-breaking is expected by summer 2021 for the initial phase of Canopy Hill, which will consist of 63 single-family lots, ranch townhome buildings, multi-family buildings and the senior living community. For more information on Canopy Hill, visit the Current Development Projects webpage.