Orland Park officials voted this week to reimburse the would-be developer of the Village’s Main Street Triangle for up to $1 million in costs associated with the project as the Village struggles to negotiate a development agreement with the company.
The refund to Edwards Realty Co. could help the Orland Park-based company buy village-owned property in the district, northwest of La Grange Road and 143rd Street.
The triangle includes the Ninety7Fifty on the Park apartments, the University of Chicago Medicine Center for Advanced Care, and multi-level parking between the apartments and the U. of C.
There are approximately 9 acres spread over five sites open for development and owned by Orland Park.
The village hired Edwards in March 2021 to consult on potential uses for the remaining land, and the village council last August agreed to negotiate a framework development agreement with the company for the property. This agreement has not yet been finalized.
Edwards’ proposal includes elements such as an indoor civic amphitheater, five- and six-story buildings that could house offices and apartments, as well as restaurants and retail space.
The money for Edwards could come from a tax-raise fundraising district that includes the property, but Orland Park officials also said sales tax revenue from a new district d business which incorporates the property could be operated to make the repayment.
In a presentation to Orland Park officials this summer, Edwards said the triangle is “envisioned as a new community gathering place comprised of pedestrian-scale buildings supporting a mix of retail uses, office, entertainment, commercial, cultural, hospitality and residential.”
Orland Park said the intention is a pedestrian-friendly development, with a mix of residential uses, such as apartments, and commercial uses such as restaurants and retail.
Edwards said a focal point of the initial development plan will be what he calls “Hero’s Memorial Park,” south of the 143rd Street Metra station, which will honor first responders. It will be near the planned amphitheater, according to the company.
Overall, Edwards estimates the development of all properties, including residential and commercial, will cost approximately $253.3 million, and the company expects the village to share approximately $49.6 million.
The planned residential buildings would include commercial space on the first floor with “lively restaurants, bars and entertainment venues”, Edwards told the village earlier this year.
Edwards said potential apartment rental rates could range from $1,500 per month for studio apartments to $2,400 per month for 2-bedroom, 2-bathroom units.
In its proposal, Edwards included a letter from First Midwest Bank stating that the developer may be eligible to borrow $75 million for the project, based on Edwards’ financial statements.
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Edwards said if approved as lead developer, he plans to start by the middle of next year on three of the properties, including Hero’s Park.
Orland Park can, through the TIF district, use the funds generated to reimburse the developer, but village officials have said they will either have to extend the life of the existing TIF district or create a new one.
In a TIF district, property taxes for all government agencies are frozen at levels at the time the TIF is created and any increases due to higher property values, the increment, are used to pay for improvements or incentives.
TIF districts usually expire after 23 years, but can be extended up to 35 years.
The triangle’s first tax year for the TIF was 2003, and the thought of village officials is that by the time much of the development is complete, the TIF will have expired or be only a few years old. This would reduce development cost payback time.
The term triangle comes from the northern boundary of the Metra SouthWest Service Line site and the Southwest Freeway, the eastern boundary of La Grange Road, and the southern boundary of 143rd Street.