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A Resolution to Authorize the Execution of a Purchase and Sales Agreement with the Cook County Land Bank Authority to Acquire the Property at 6336-38 Roosevelt Road
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Introduction
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The purpose of this agenda item is to authorize the Village’s acquisition of 6336-38 Roosevelt Road (16-17-324-036-0000).
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Recommended Action
Staff recommends the Board of Trustees approve the resolution to execute the Purchase and Sale Agreement (PSA) and authorize the acquisition of the property.
Prior Board Action
There are no prior board actions associated with this agenda item.
Background
In September 2024, Staff presented an opportunity to the Board of Trustees to acquire the subject property from the Cook County Land Bank Authority (“CCLBA”) for the purposes of blight remediation and economic development in alignment with the Board of Trustees’ goals related to:
Community Affordability
a. Reduce economic barriers via an affordability mandate (10%, 20%, 50%+)
b. Increase supply of affordable units for purchase via deed restrictions
c. Leverage county abatements to enhance affordability for owner-occupied units
Vibrant, Diverse, and Connected Neighborhoods
a. Strengthen the connection between neighborhoods and business districts via mixed-use and mixed-income development strategy
b. Advance the “15-minute village” development strategy
Sustainability and Resiliency
a. Implement Climate Action Plan via LEED certification, electrification, sustainable materials, and reduced parking
Economic Vitality
a. Implement the Village’s vision and plan for the redevelopment of the Roosevelt Rd. Corridor
b. “Built-in consumers” to support local businesses, grow organizational capacity, and increase the vibrancy of Roosevelt Rd. Business District.
c. Provide modern retail suites to improve the viability of future small businesses
Following the presentation, the Board of Trustees authorized Staff to begin negotiations with the CCLBA to acquire the property for up to $70,000.
Negotiations between the Village and CCLBA have successfully resulted in a Purchase and Sale Agreement to acquire the property for $37,600 plus additional holding costs incurred by CCLBA beginning in January 2025 and through the execution date of the PSA. Those costs are detailed below.
Security Doors: $65 per month
Building Inspections: $150 per month for January and February 2025, increased to $375 per month after March 1, 2025
Snow Removal: $40 per occurrence
Timing Considerations
While there are no specific timing considerations associated with this item, the Village has agreed to incur the CCLBA’s carry costs accrued between January 1, 2025, and the execution of the Purchase and Sale Agreement. This amounts to $255 per month for January and February 2025, increasing to $480 per month in March 2025 and thereafter. Upon approval of the Purchase and Sale Agreement, the Village will have 120 days to complete due diligence and authorize the sale with the CCLBA.
Budget Impact
The adjusted acquisition price ($37,600 plus agreed CCLBA monthly carry costs) will be funded through the account of the Office of Economic Vitality’s budget GL 1001.41026.570704.0000 - “Property Acquisition.”
Recurring operating and maintenance expenses will be funded through the office’s budget GL 10001.41026.101.530660.0000 - General Contractuals.
Staffing Impact
Day-to-day management of the asset will be handled by the Village Manager’s Office of Economic Vitality. Maintenance will be managed within Public Work’s Building Maintenance Division. At this time, staff anticipates any impacts on staff’s time to be negligible.
DEI Impact
At this time, there is no DEI impact associated with this item.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Staff recommends the Board of Trustees approve the resolution to approve the Purchase and Sale Agreement and authorize the acquisition of the property.
Advantages:
• Strategic control of distressed commercial property within the Roosevelt Road Corridor
• This action empowers the Village to proactively remediate blighted conditions and reposition the property for productive use in alignment with Village Board goals
Disadvantages:
• Conflicting redevelopment goals and ideologies may burden interested development partners with unfeasible redevelopment expectations
• Market conditions may deteriorate - financial markets do not support the redevelopment of the property in the short or medium-terms
Alternatives
The Board of Trustees could alternatively:
Alternative 1: Forego authorization of the resolution to execute the Purchase and Sale Agreement
Advantages:
• The Village maintains its public interest in the property without assuming ownership risks
Disadvantages:
• Improving the blighted condition of the property and repositioning for productive use will be delayed until an alternative buyer is identified
• CCLBA may request compensation from the Village for “lost time” and associated carrying costs
Alternative 2: The Village offers financial support to facilitate the acquisition by a to-be-determined private party
Advantages:
• The Village maintains its public interest in the property and the potential to significantly influence repositioning without assuming ownership risks
Disadvantages:
• Improving the blighted condition of the property and repositioning for productive use are delayed until an alternative buyer is identified.
• Requires ongoing collaboration between the Village and CCLBA
• CCLBA may request compensation from the Village for “lost time” and associated carrying costs
Anticipated Future Actions
Upon completion of traditional due diligence activities, Staff may return to the Board of Trustees for a final determination regarding the property’s condition and authorization to close with the CCLBA.
Prepared By: Brandon Crawford, Economic Vitality Administrator
Reviewed By: Ahmad Zayyad, Deputy Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. 2024.11.01 Executed Cook County Land Bank Authority (“CCLBA”) Term Sheet
2. 2025.03.11 6336 Roosevelt Road Purchase and Sale Agreement
3. Resolution