A former lumberyard will be transformed into downtown East Dundee’s new “civic and cultural heart” under a proposal presented Monday to the village board.
Heritage Station is an $18 million development that would feature a performing arts center, retail shops, apartments and townhouses, said Andy Burns, cofounder of Sightwell Inc.
“This isn’t a proposal. It’s a vision,” Burns told the board. “It’s the next chapter of East Dundee.”
The village purchased the property at 110 Railroad St., formerly the Doederlein Lumber Co., in 2023 with a plan to use it for future redevelopment.
Sightwell is the only company to submit plans when the village put out a request for proposals, which came with the proviso that space must be allocated for a performing arts venue.
Heritage Station would include a multiuse building facing Railroad Street that would house the Depot Shops and theater space on the first floor and apartments and “boutique lodging” on the second, according to Sightwell’s plan. A residential component facing Hill Street calls for nine to 12 townhomes with front stoops and alley garages to be called Heritage Row.
“This isn’t just about filling vacancies but about curating an experience that strengthens East Dundee,” Burns said of the businesses they’d handpick as tenants.
“These are small, carefully chosen operators that draw people downtown and complement existing businesses and add reasons for visitors and residents to linger longer and spend more,” he said.
In addition to the five to six rental apartments on the second floor to be called The Rail Flats, there will be 10 suites of boutique lodging called The Station House, Burns said.
“This turns East Dundee into a place people not only visit but also stay,” he said.
The 8,000-square-foot performing arts center will be the centerpiece of the entire project, Burns said. It’s proposed as a lease-to-own structure for a regional nonprofit organization, which could be the Raue Center in Crystal Lake, which has expressed interest in expanding to East Dundee and operating the venue.
It would have a 2,000-square-foot lobby and plaza, a 4,000-square-foot stage with flexible seating, professional lighting and sound, two dressing rooms, administrative offices and classrooms, Burns said.
The goal is to create gathering spaces that engender civic pride with a walkable design to encourage engagement and economic activity, he said.
Stillwell is proposing it as a public-private partnership, with the village selling the company the site for $10 and contributing $2.5 million in Tax Increment Financing funds, Burns said. The organization leasing the performing arts center would contribute $5.5 million and the remaining $10 million would come from private developers, he said.
Public funds would pay for the civic and public components of the projct, Burns said.
“This is a partnership, not a subsidy,” he said.
Once completed, Heritage Station and its other components would generate $14.5 million in property taxes over 23 years, Burns said.
“Instead of a stagnant site, we are unlocking a long-term revenue engine that strengthens East Dundee for decades,” he said.
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Board reactions to the proposal were positive, with Trustee Scott Kunze calling the concept “awesome.” However, Kunze raised concerns about parking and Trustee Matt Oclon questioned how they would deal with the property being in a flood plain, which potentially could cause flooding issues for neighboring property owners.
Burns said both issues will be addressed in the engineering process.
While Sightwell presented three options for how the development might look, one featuring a clock tower appealed to many of the trustees.
If the village decides to move forward with the project, a development agreement would be drafted over the next few months for board approval. If all goes smoothly, construction could start in late 2026 and be completed by summer 2028, officials said.
Gloria Casas is a freelance reporter for The Courier-News.