A long-closed roadside hotel just outside Dixon could soon be packed with renters instead of road-trippers, if a Chicago development team gets its way. The plan: turn the shuttered Magnuson Hotel into a 70-unit apartment complex with a full gut rehab and roughly $2 million in private money. The reaction from nearby residents at a recent zoning hearing: not exactly enthusiastic, with neighbors warning the project is too big for the Castellan subdivisions and flagging traffic and private-well worries.
Developers' plan and building condition
Owners Tomasz Klimowski and Edin “Eddie” Begic told county officials they want to strip most of the interior down and rebuild it as apartments, offering 12 studios, 36 one-bedroom units, 17 two-bedrooms, and five three-bedrooms on one-year, market-rate leases. Klimowski said the team expects to put about $2 million into renovations and will screen tenants with background and credit checks. The building, which a judge ordered closed in late 2024 over safety problems, was later inspected by Lee County building staff, who reported the structure is largely concrete and could be rehabbed, according to Shaw Local.
Rezoning petition and hearing
The formal request on file is Petition No. 25-P-1658, submitted by Dixon Apartments LLC. The company is asking Lee County to rezone the parcels at 441 and 443 IL Route 2 from C-3 General Business to R-4 Multi-Family Residential so the former hotel can operate as an apartment building. The petition appeared on the Zoning Hearing Officer agenda for the March 25 meeting and was heard by Officer Brian F. Brim, according to the Lee County Zoning Hearing Agenda.
Neighbors push back
Residents who showed up to the hearing said that if all 70 units are filled, the building could hold more than 100 people, which they argued would overwhelm the quieter riverfront subdivision behind the property. They cited potential problems with lights, noise, and extra cars on nearby roads, and questioned whether private wells and other local infrastructure could handle the added demand. At the same time, both the Palmyra Township board and the Dixon City Council had earlier filed “no objection” responses to the proposal, according to Shaw Local.
County rules and timeline
County staff reminded attendees that the property already ties into Dixon’s sewer system and that any overhaul of the building will still have to go through engineering review, permitting, and inspections from the building department. Under Lee County’s zoning calendar, petitions heard toward the end of March can move to the County Board on April 23 and, depending on when paperwork is completed, could be up for a vote as early as the May 21 meeting, according to the county’s zoning filing deadlines in the Lee County Zoning Forms.
What comes next
Zoning Hearing Officer Brim will now prepare a report and recommendation for Zoning Administrator Alice Henkel, who will present it to the full County Board before members decide on the rezoning request. Even if the board signs off on the zoning change, the owners would still need to secure permits, clear inspections, and obtain engineering approvals before any construction or move-ins could happen. Neighbors say they plan to keep pushing for conditions they believe would protect infrastructure and nearby property values as the project moves through the next rounds of review.
