Work starts on new parking deck in East Dundee

East Dundee trustees broke ground on a long-awaited project that will bring more parking to the downtown district.

Construction work is expected to begin this week on a two-level parking deck that can be accessed off Hill and Jackson streets. The $6.5 million project will add roughly 130 parking spaces to the downtown and 6,000 square feet of retail space on the first level fronting River Street.

“It’s a long time coming,” East Dundee Village President Jeff Lynam said. “We’re real excited about it.

“I believe this deck will be the catalyst … of further growth opportunities,” he added. “It is going to ensure the viability of the downtown for generations to come.”

A 2021 parking study showed the downtown district had 573 parking spaces, about 259 spots short of what was needed. Lynam and village officials have said the added spaces will help spur additional development in the downtown district.

In May, representatives from the Raue Center for Performing Arts in Crystal Lake suggested they were considering branching out into East Dundee. The village also confirmed they began talks with Raue Center officials last year about potentially expanding into the downtown district.

Though no formal plans have been submitted, the Raue Center could be part of redevelopment plans for a two-acre parcel on Railroad Street that once housed a lumber yard.

“The parking deck, for development of those other sites, is key,” Lyman said. “You need to make sure that whatever you end up developing, that people have a place to park.”

The new parking deck is expected to be completed by early next year. The village will use a $1 million state grant and $1.5 million from the downtown district’s tax increment finance district to help pay for the parking deck. The remaining costs will be covered by a special sales tax paid by patrons shopping or eating at any of the downtown businesses. The special sales tax generates about $500,000 a year for the village.