Hampshire, Illinois. On a June night in 1994, Hampshire completed its annexation of a 30-mile corridor from its former outskirts north to the I-90 interchange at U.S. Route 20, creating a bipolar community.

"It's almost as though we have two villages," said William Schmidt, village president for the past 13 years. "We're kind of recycling ourselves in going back out there." And increasing the community's tax base. The village's primary economic development is now at the interchange. By September, an $80 million plant built by Elgiloy, a stainless-steel fabricator, will have begun operations in an industrial park developed by the company.

Other businesses will follow, including a motel for Elgiloy customers to complement the two 24-hour truck stops and other eateries now there to serve the 600 to 700 trucks that pass through daily. The downtown business district also is thriving, although it's not as diverse as it once was. Mall competition has forced some retailers to close.

"All in all, as the old has gone out, something new has filled in," said Schmidt. Three smaller industries will be opening in the future in a centrally located industrial park. Farmland straddling the annexed stretch to I-90 probably will be converted to residential use eventually. "We visualize that corridor being upscale-type housing," Schmidt said.

Now there are three subdivisions of custom and semi-custom homes, served by a city well and sewage treatment plant, under development on the south side of Hampshire. However, there's no massive construction boom. Only 26 building permits were issued in 1997 and fewer in previous years. The minimum lot size in Hampshire is about a quarter-acre, which precludes tract housing.

In Hampshire Prairie, prices range from $200,000 to $269,000 for 1,600- to 2,400-square-foot homes. Hampshire Hills houses, measuring 2,000 to 3,000 square feet, cost between $279,000 and $379,000. Hampshire Fields, the newest subdivision, is similar to the Prairie development, said Lynn Klein, broker-owner of Century 21 New Heritage.

Klein's office is in the middle of the building activity. "I'm looking out my window at the first home going up in Hampshire Hills," Klein said, noting that buyers are migrating there from such Chicago suburbs as Palatine, Mt. Prospect and Schaumburg. "They're coming out to get more for the dollar," she said.

Old Town Manor, a planned-unit development started five years ago, includes duplex and townhouse units priced between $132,900 and $136,900. Investor-owned duplexes rent for $900 to $1,000 a month, and townhouses $700 to $800, Klein said.

A senior citizen center will be expanded with proceeds from a $75,000 grant.

In early June, the Hampshire Chamber of Commerce sponsored its first downtown mixer with food and entertainment for residents and visitors. The expected yearly event is intended to showcase the business community, said Jeanne Holzkamp, chamber president. The annual Coon Creek festival follows in mid-summer.

Holzkamp, a five-year resident, said she loves the openness, the location and the friendliness of Hampshire. "People joke about the Hampshire wave, but people do wave here," Holzkamp said. "You probably won't drive past anybody who won't wave at you."