The developer behind Heritage Station, an $18 million project that was to transform East Dundee’s downtown into the village’s civic and cultural heart, has pulled out of the deal.
West Dundee-based Sightwell Inc. proposed Heritage Station as a public-private initiative using the former Doederlein Lumberyard land at 110 Railroad St., which the village purchased in October 2023.
However, the project is “no longer financially viable,” according to developer, which notified the city earlier this month of its decision, according to village documents.
East Dundee planned to sell the property to Sightwell for $10 and provide $2.5 million in Tax Increment Financing funds to build a performing arts center, retail shops, apartments and townhouses. The project was expected to generate $14.5 million in property taxes over 23 years.
“This isn’t a proposal. It’s a vision,” Sightwell co-founder Andy Burns told the village board in August 2025. “It’s the next chapter of East Dundee.”
After being told of his financial situation, staff discussed other options with him, including phasing the construction, modifying development components and adjusting the density, but “the developer advised he could only move forward if the village provided substantially more village funds to the project, beyond the land conveyance and the $2.5M in TIF incentive,” documents said.
Neither the village nor Sightwell could be reached for comment. As of Friday, the developer still had images of the project on its website, calling it a “catalyst for community development and downtown revitalization while emphasizing historic preservation.”
Sightwell was the only firm last year to respond to the village’s request for proposal to develop the site.
While Heritage Station is derailed, plans for the 8,000-square-foot performing arts center are moving forward, with the village taking the lead in its development.
East Dundee has been working with the Raue Center in Crystal Lake since 2024 on the performing arts center, for which the village would sell bonds to pay for construction to be repaid over 20 years and the center would purchase via a lease-to-own agreement, according to village documents.
The timeline for the performing arts center would be the same, but the village would oversee the project, like it did with the downtown parking garage.
Staff is recommending that bids to demolish fencing and two barns on the center portion of the lumberyard land be sought to prepare the site for the construction. The village could reissue a request for proposals to seek commercial developers for the rest of the site.
The Heritage Station project included turning a piece of land adjacent to the lumberyard into an extension of Meier Street to allow for two-way traffic and angle parking. East Dundee could still proceed with those changes by earmarking funds in its capital projects budget, documents said.
Village board trustees are to discuss the next steps for the project at their Monday night meeting.
Gloria Casas is a freelance reporter for The Courier-News.
