Submitted By
Tammie Grossman, Director of Development Customer Services
Reviewed By
LKS
Agenda Item Title
Title
An Ordinance Authorizing the Execution of a Third Amendment to Redevelopment Agreement - Lake Street / Westgate / North Boulevard Site and 1118 Development Agreement by the Village of Oak Park, a Home Rule Unit of Government
End
Overview
Overview
The Third Amendment is necessary as part of the Village’s asbestos abatement at 1118 Westgate and as a part of the Developer’s work related to 1118 Westgate. The Third Amendment allows for the Village and the Developer to proceed work with in the alleys near 1118 Westgate and with ComEd for project required facilities prior to the project’s Real Estate Closing at the end of October 2015.
Body
Staff Recommendation
Adopt the Ordinance.
Fiscal Impact
As part of the original Redevelopment Agreement, the Village agreed to be responsible for the costs associated with the asbestos removal and alley construction.
Background
In 2007, following a detailed Request for Qualifications (RFQ) process for the development of the Colt Westgate Site the Village entered into negotiations with Clark Street Developers. In 2008, Clark Street Developers were named the Preferred Developer for the Colt Site. Since that time there has been a focused effort by a group representing Village staff, the Village Board and Oak Park Economic Development Corporation (referred to as the Village’s Economic Development Team) to work in partnership with Clark Street to identify the highest and best use for the site.
Following past protocols, a Request for Alternative Proposals was submitted to the development community. No alternative proposals were received and this was reported to the Village Board at the June 17, 2013 Regular Meeting of the Board of Trustees. At this time, the Board provided staff with instructions to begin to negotiate a Development Term Sheet that would provide a broad understanding of the development proposal.
On July 22, 2013, the Village Board approved a term sheet for the proposed development project. Upon formation of the newly reconstituted Oak Park EDC in February of 2014, that organization began its review and evaluation of the proposed redevelopment project.
The Developer is responsible for the demolition, retention and stabilization of the front of approximately 15 feet of the façade of 1118 Westgate and preparation of the area to be conveyed and dedicated for the ComEd facilities and other alley work to be completed prior the Real Estate Closing defined in the original Redevelopment Agreement and amended in the Second Amendment approved on June 1, 2015. If this work is not done prior to October 31, 2015, it will delay construction of the larger transit oriented development.
Alternatives
The Board could choose to not enter into the Third Amendment or the new Redevelopment Agreement, however, the construction start deadlines for the larger transit oriented development would not be able to be met until the work on 1118 Westgate is performed.
Previous Board Action
On April 28, 2014, the Village Board directed staff to negotiate a Redevelopment Agreement with Clark Street Development, LLC., based upon the recommendations of the Oak Park Economic Development Corporation (EDC). On May 27, 2014, the Village Board approved the Redevelopment Agreement with Clark Street Development, LLC. On November 3, 2014, the Village Board approved the First Amendment to the Redevelopment Agreement that added Lennar Multifamily Communities, LLC. On June 1, 2015, the Village Board approved the Second Amendment to the Redevelopment Agreement to finalize project schedule completion.
Citizen Advisory Commission Action
On the Board Agenda is an item seeking referral of the Planned Development Application for consideration by the Plan Commission
Anticipated Future Actions/Commitments
On the Board Agenda is an item seeking referral of the Planned Development Application for consideration by the Plan Commission
Intergovernmental Cooperation Opportunities
Intergovernmental agreements are in place with allow the village to utilize TIF funds generated by this project to capitalize the Village’s infrastructure investment in the public portion of the garage.
Performance Management (MAP) Alignment
A governance priority established for the Development Customer Services Department is development management