A 29-acre site in St. Charles – one of the last remaining open properties in town for residential development – is becoming a flashpoint for housing affordability in the city.

With a new project proposal on the table, some city officials are requesting affordable units, while the developers say it hurts their private equity-backed bottom line.

Two developments are proposed to divide up the site. Springs at 38 West consists of 306 rental apartments in 12 two-story buildings and two three-story buildings and a clubhouse. The complex would sprawl across 22.2 acres. The Traditions of St. Charles development would take up the remaining 7.3 acres, consisting of a three-story, 167-unit senior living facility with independent living, assisted living and memory care.

The site is in the southwest part of town on the southern side of Illinois Route 38, west of the Meijer grocery store.

City officials previously told the developers they prefer that the site include a mix of residential options for all ages, complementing the surrounding areas. They said a priority was making sure teachers, city employees, health workers, first responders and working-class families and individuals can afford to live in town.

During a March 16 City Council Committee of the Whole meeting, the developer of Springs at 38 West, Continental Properties, and Austin Dempsey, CEO of BEI Properties, pushed back on that notion. The developers of Traditions of St. Charles, the Leo Brown Group, also did not accommodate any substantial affordable units in their concept plans.

The city’s inclusionary housing ordinance requires 10% of units to be affordable to households who earn 60% of the area median income, according to city documents.

While hinting that inclusionary housing could become a sticking point between developers and the city, Dempsey said any new housing should help the market.

“There’s an unmet demand in housing in our community already,” Dempsey said during the meeting. “Adding any units of any kind will help to balance and create more affordability.”

According to Continental Properties, of the 306 rental apartments at Springs, 9% are studios that will go for $1,636 per month, 40% are one-bedroom for $1,905 per month, 40% are two-bedroom for rent of $2,333 and 11% are three-bedroom units for $2,671.

The developers said they are trying to support retail along the Randall Road corridor by “attracting residents with disposable income.” City officials responded by saying there are people who work for the city who can’t afford to live there.

Continental Properties previously developed Springs at St. Charles on the east side of town. For that development, they paid the city cash in lieu of providing on-site affordable housing units.

During the March 16 meeting, the developers said offering affordable units, such as a $1,070-per-month studio would “provide a revenue gap.”

Alderperson Ronald Silkaitis told the developers that while he approves of the site plan, he wants affordable housing prioritized.

“We don’t want cash donations,” Silkaitis said. “We want on-site affordable housing because there is an issue in Illinois in general for affordable housing. I’m not in favor of taking a fee in lieu of that.”

Other alderpersons echoed his concern, saying on-site affordable housing is needed because it’s one of the final places to develop in the entire city.

Leo Brown Group, which recently developed the luxury Ignite Medical Resort in Batavia, requested an exemption from providing affordable units because representatives said services and amenities are built into the rental rate. During the meeting, alderpersons asked how the housing could be made more affordable for seniors.

Developers said the total investment for both projects combined is around $150 million, about $100 million for Springs and $50 million for Traditions.

For full approval, the site needs to be rezoned to residential, and a planned-unit development needs the City Council’s blessing. The current land use is agriculture. There’s commercially zoned property to the north and east, multi-family housing to the south and farmland to the west.

A new access roadway is proposed on Route 38, with secondary access via the cross-access drive south of Metro Self Storage.

The St. Charles Park District is requesting a two-acre public park site donation on the property. Silkaitis said he defers to the park district whether to have the park on or off site.

Alderperson Jayme Muenz said the plans include 100 extra parking spaces that could be decreased to expand green spaces on the site. She also requested paths be built to local recreation areas, with both access to bike paths and the Meijer.

Alderperson Vick Spellman requested expanded green spaces for seniors to enjoy recreation on the property.

Dempsey said the developers are currently looking to increase green space and provide cash for parkland elsewhere in town. He said it’s difficult to connect the site to available walking paths outside the property.

“If we work together we can make something happen on this site that will be an incredible addition to St. Charles,” Dempsey said.