Submitted By
Emily A. Egan, Development Services Director
Reviewed By
Erin E. Baynes, Assistant to the Village Manager
Agenda Item Title
Title
An Ordinance Approving a Sixth Amendment to the Redevelopment Agreement for the 700-728 Madison Street Redevelopment Project between the Village of Oak Park, Jupiter Realty Company, LLC, Oak Park Madison Street, LLC (Pete’s), and AH Oak Park, LLC and Authorizing Its Execution
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Overview
Overview
Due to delays caused by the COVID-19 pandemic and other factors as explained by the applicant, Oak Park Madison Street, LLC seeks an amendment to the Redevelopment Agreement to extend the completion date of the Pete’s Fresh Market store from June 30, 2024 to sixteen (16) months after the “Permit Date” as defined in the Sixth Amendment.
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Recommendation
Recommendation
Adopt the Ordinance
Background
Due to delays caused by the COVID-19 pandemic, supply chain issues, and the relocation of utilities, Oak Park Madison, LLC, seeks to amend the Redevelopment Agreement to update project milestone dates for the construction and opening of Pete’s Fresh Market. To date, the developer has demolished the building and secured permits for the relocation of ComEd, AT&T, Nicor, and the Village water/sewer system from the Village’s public right of way on Euclid Avenue.
Between 2001 and 2005, the Village purchased the properties located at 710-728 Madison for redevelopment of a future parking lot for a total of $2,206,500. The parking lot was leased to Fenwick High School in 2009. In anticipation of the site’s redevelopment, that lease was not renewed in 2018-2019.
On May 18, 2018, the Village issued a Request for Proposal (RFP) for the properties on the north side of Madison between Oak Park Avenue and Euclid. On May 25, 2018, the Village issued an amended RFP extending the due date to July 6, 2018. This amendment clarified the Village’s potential willingness to allow a cul-de-sac at Euclid Avenue as it had acquired the parcel at 700 Madison (formerly CarX) for $1.2 million.
On September 16, 2018, the Village issued an RFP for the property at 710-728 Madison. Jupiter Realty Company was named the preferred developer. The RDA between the Village and Jupiter for the 710-728 Madison properties was never finalized.
The Oak Park EDC reviewed the submissions to the revised RFP and presented a recommendation to enter into a redevelopment agreement with Jupiter. The agreement would combine the Village-owned parcel at Oak Park and Madison with the property located at 644-640 Madison. The Village would then partner with Pete’s Fresh Market to build a grocery store and the property located at 725 and 711 Madison to construct a senior living facility.
On December 10, 2018, the Village Board approved a Redevelopment Agreement (RDA) for the 700-728 Madison Street Redevelopment Project Consistent with the Oak Park Economic Development Corporation’s (Oak Park EDC) Recommendation Between the Village of Oak Park and Jupiter Realty Company, LLC (Jupiter), Oak Park Madison Street LLC (Pete’s), and 711 Madison Senior Living, LLC.
The First Amendment to the RDA was on September 3, 2019.
The Second Amendment to the RDA was on November 23, 2020, for dates for Pete’s Fresh Market Project Schedule.
The Third Amendment to the RDA was on February 22, 2021, for dates for the Senior Housing Project Schedule.
The Fourth Amendment to the RDA was on October 18, 2021, to adjust dates for the Senior Housing Project Schedule.
The Fifth Amendment to the RDA was on January 17, 2023, to adjust dates for Pete’s Fresh Market project for delays caused by the COVID-19 pandemic.
The attached Ordinance authorizes a Sixth Amendment to that Redevelopment Agreement. The Sixth Amendment includes the addition of electric vehicle charging stations on-site, a $22,000 donation to the Oak Park Area Arts Council for temporary art located at the property line during construction, and a Claw Back Remedy if construction does not begin within one hundred (100) days of the commencement of construction of the grocery store’s foundation. It also provides a performance penalty fee of $16,000 if the project is not under roof within nine (9) months and $45,760 per month if the project does not receive the certificate of occupancy within sixteen (16) months after the Permit Date.
Fiscal Impact
The Sixth Amendment includes performance penalties of $16,000 and $45,760 per month if project development is delayed beyond the applicable milestones. These penalties are based on an estimate of lost revenue for a delayed project that would otherwise be deposited in the Village’s general revenue fund.
The project involves significant private investment. Pete’s representatives estimate an investment to date of $4.3 million in hard costs for utility relocation and site preparation. While staff have not seen the private contracts outlining the details of this work, they believe that the estimated dollar amount provided by Pete’s representatives is reasonable for the work completed thus far. Completed work items within that estimate include:
• ComEd relocation
• AT&T relocation
• Comcast relocation
• Village water and sewer main relocation
• Private storm sewer detention system installation
• Building demolition
• Environmental remediation
Pete’s representatives also estimate an additional $3.8 million has been expended between ordering supplies and materials for construction and soft costs such as architect, engineering, and project management. Pete’s representatives estimate a total investment to date of $8.1 million.
DEI Impact
The project would provide access to grocery store items to the community. The size and scale of this project indicates its ability to also serve the wider region, extending food access to neighboring areas and residents. Food access, especially to fresh fruits and vegetables, is a critical service and aligns with the Village Board’s goals for equity and economic vitality.
Alternatives
The Board can choose not to adopt the Ordinance.
Previous Board Action
On September 6, 2016, the Village Board directed staff to issue an RFP for the Village-owned parcel at the corner of Madison and Oak Park Avenue (710-728 Madison).
On December 5, 2016, the Village Board approved a motion recommended by the Oak Park EDC to designate Jupiter Realty Company, LLC (Jupiter) as the preferred developer for 710-728 Madison Street and directed staff to negotiate a redevelopment agreement.
On September 5, 2017, the Village Board authorized the purchase of 700 Madison.
On May 7, 2018, the Village Board approved a motion to direct the issuance of an RFP for 700-728 Madison.
On October 1, 2018, the Village Board approved a resolution for an independent contractor agreement with Delta Demolition, Inc. for the demolition of 700 Madison Street in an amount not to exceed $141,425.
On October 29, 2018, the Village Board approved a motion to name Jupiter as the preferred developer and directed staff to negotiate a redevelopment agreement.
On December 10, 2018, the Village Board approved a Redevelopment Agreement for the 700-728 Madison Street Redevelopment Project Consistent with the Oak Park Economic Development Corporation’s (Oak Park EDC) Recommendation Between the Village of Oak Park and Jupiter Realty Company, LLC (Jupiter), Oak Park Madison Street LLC (Pete’s), and 711 Madison Senior Living, LLC.
On September 3, 2019, the Village Board approved a First Amendment to the Redevelopment Agreement for the 700-728 Madison Street Redevelopment Project Between the Village of Oak Park and Jupiter Realty Company, LLC (Jupiter), Oak Park Madison Street LLC (Pete’s) and AH Oak Park, LLC.
On February 3, 2020, the Village Board concurred with the Plan Commission’s recommendation and adopted an Ordinance Granting a Special Use Permit for a Major Planned Development Containing a Seven Story Senior Living Facility at the Property Located at 711-725 Madison Street and authorized the vacation of the portion of Euclid Avenue between and abutting 711 and 725 Madison Street.
On November 23, 2020, the Village Board adopted the Second Amendment to the Redevelopment Agreement for 700-728 Madison Street Redevelopment Project Between the Village of Oak Park and Jupiter Realty Company, LLC (Jupiter), Oak Park Madison Street, LLC (Pete’s) and AH Oak Park, LLC to amend project milestones and the project concept plan.
On February 16, 2021, the Village Board concurred with Plan Commission’s recommendation and adopted An Ordinance Granting a Special Use Permit for a Major Planned Development Containing a Commercial Building (Pete’s Fresh Market) with 220 parking spaces at 640-728 Madison Street and authorized the vacation of the portion of Euclid Avenue between Madison Street and the east-west alley North of Madison Street and a portion of Madison Street between Oak Park Avenue and Wesley Avenue.
On February 22, 2021, the Village Board approved a Third Amendment to the Redevelopment Agreement for the 700-728 Madison Redevelopment Project between the Village of Oak Park, Jupiter Realty Company, LLC (Jupiter), Oak Park Madison LLC (Pete’s), and AH Oak Park, LLC which amended the project milestones in the Redevelopment Agreement for the senior housing project.
On October 18, 2021, the Village Board approved a Fourth Amendment to the Redevelopment Agreement for the 700-728 Madison Redevelopment Project between the Village of Oak Park, Jupiter Realty Company, LLC (Jupiter), Oak Park Madison LLC (Pete’s), and AH Oak Park, LLC which amended the project milestones in the Redevelopment Agreement for the Pete’s Fresh Market Store.
On January 17, 2023, the Village Board approved a Fifth Amendment to the Redevelopment Agreement for the 700-728 Madison Street Redevelopment Project between the Village of Oak Park, Jupiter Realty Company, LLC, Oak Park Madison Street LLC (Pete’s), and AH Oak Park, LLC and Authorizing its Execution.
Citizen Advisory Commission Action
The Plan Commission reviewed the Major Planned Development and approved the project unanimously.
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A