Lilac Ledge Apartments, a 12-story, 203-unit apartment building in downtown Waukegan serving low-income and retired tenants, will be undergoing a $4.7 million renovation over the summer, financed with federal tax credits and tax-exempt bonds intended to encourage the development of affordable housing.
Andy DeBruler, head of real estate development at the Libertyville-based DeBruler Company, which manages the building, said the company plans to replace 2,400 windows, two elevators and the roof; upgrade the business and fitness centers; and add a full-time social service coordinator and a full-time wellness nurse. DeBruler also wants to install granite counters, new cabinets and energy-efficient light fixtures, he said.
“It’s time,” DeBruler said. “It’s 40 years old. We’ve kept up on the deferred maintenance, but some of the big-ticket stuff … their time is up.”
DeBruler said the company hopes to begin the rehabilitation in late June or early July. He said none of the tenants — most of whom qualify for Section 8 housing vouchers — would likely be displaced, though he said there is money set aside if tenants need to be relocated to a hotel for a few days.
The Lake County Board last month approved the issuance of $22 million in federally tax-exempt bonds, which DeBruler said will be used to renovate the building, pay for soft costs such as lawyers and finance a $13.5 million sale of the building as part of a reorganization of the ownership structure necessary to qualify for tax benefits.
“We’re kind of actually selling it to ourselves,” DeBruler said.
Lake County Finance Director Gary Gordon said the county is only serving as a conduit or pass-through agency, so it assumes no risk associated with repaying the bonds.
“It’s private money,” Gordon said. “They’ll be borrowing the money directly from the bank.”
By coming through the county, Gordon said, DeBruler will be able to “take advantage of lower borrowing costs.”
Lilac Ledge is at 542 Washington St. in Waukegan. The building mostly consists of one-bedroom apartments but also has two studio units on each floor, according to its website.
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