MOUNT VERNON — A multi-family rental apartment development on Upper Gilchrist Road is again on the move.
Residences at Founders Grove is a 156-unit Lemmon Development complex located on 34 acres north of Rockford’s complex, The Retreat at Mount Vernon.
Lemmon also developed Danbury Senior Living on Venture Drive.
Mount Vernon’s Municipal Planning Commission recommended, and council members approved, rezoning the 34 acres to PND (Planned Neighborhood Development) in November 2023.
Both entities approved Lemmon’s development plan in the spring of 2024. Founders Grove LLC bought the property in July 2024 for $1,152,260.
Plans call for six, 8-unit apartment buildings and 108 housing units composed of 2-, 4-, and 6-unit villas.
City council members voted in a special session on Wednesday to accept Lemmon’s petition to join the city’s New Community Authority.
They also set a public hearing for Monday, Dec. 22, at 6:30 p.m.
“The New Community Authority allows the city to generate community development charges, which help finance potentially additional infrastructure for any new developments that come into the city,” Michael Ringle of Bricker Graydon told council in a special session on Nov. 17.
For Founders Grove, Lemmon Development will assess a 4-mill development charge to new structures within the development.
In return, Lemmon asked for a 10-year, 50% abatement on real property taxes through the city’s Community Reinvestment Area.
Council members gave a first reading to legislation executing a CRA agreement with Lemmon at their Nov. 17 meeting. It will be on the Nov. 24 agenda for a second reading.
Lemmon has not released rental prices.
Financial impact to the schools
All CRA agreements require the city to notify the schools and county commissioners of the abatement. Area Development Foundation President Sam Filkins, who works with the city on CRAs, notified the commissioners on Nov. 13.
Filkins said the housing units are age-targeted, but not age-restricted.
“It will not create, ideally, a lot of children for the schools, so they won’t be getting a large influx,” he said.
Lemmon will invest approximately $45.5 million into the Founders Grove project. The abatement will save the developer about $2 million.
“I’m not giving tax abatements just to give them out,” Filkins said. “They had to show that it was the difference between them feeling confident and going forward.”
Mount Vernon City School District’s projected 50% share is $148,457 annually for the 10-year term of the abatement.
“Once the abatement rolls off, starting in year 11, they would earn $286,422. Currently, that entire lot produces $1,000 in taxes for all taxing authorities,” Filkins said.
“So we’re going from $1,000 total collections to the schools alone getting $148,457 for 10 years. The career center will get $19,422 for the first 10 years, and then it will be double that at $37,471 moving forward.”
The target resident in Founders Grove is age “60 and better.” Filkins said that reflects the county’s aging population.
“Our median age is higher than the state and national average, and we have many people in our community that are living in homes that are above what they would like to maintain,” Filkins said.
He noted the Rockford apartments are geared more toward young professionals.
The CRA terms require Lemmon to complete construction by 2028.
