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Concur with the Historic Preservation Commission and Adopt a Resolution Supporting and Consenting to Approval of Cook County Class L Classification for the Rehabilitation of the Building Located at 1144 Lake Street, Oak Park, Illinois
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Introduction
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Nicholas P. Karris, on behalf of the owner of the Marshal Fields and Company building located at 1144 Lake Street, is applying for a Cook County Class L real estate tax assessment incentive that offers financial benefits to property owners undertaking substantial rehabilitation of landmarked buildings. In order to receive a Class L assessment designation, the municipality in which the real estate is located must, by lawful ordinance or resolution, state (1) that the incentive is necessary for the substantial rehabilitation, (2) that it supports the granting of the incentive, and (3) that it has reviewed and accepted its Preservation Commission’s recommendation of the project. This resolution would provide Village support for the Class L request and is a companion item to the Landmark Designation Ordinance and the attached Economic Incentive Agreement.
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Recommended Action
Adopt the Resolution.
Prior Board Action
On September 6, 2022, the Village Board approved an economic incentive agreement with 1144 Lake Street LLC for a new grocery store- Dom’s Kitchen & Market. However, the Dom’s Kitchen & Market grocery store did not move forward.
Background
Village staff and the Village’s consultant conducted an Economic Impact Analysis to determine the feasibility of the Cook County Class L designation. The analysis also contemplated a sales tax rebate to the developer for the municipal and home rule sales taxes generated by the new Barnes & Noble Bookstore. However, the owner has since withdrawn its request for a sales tax rebate and is only requesting a Class L incentive at this time.
As noted above, in 2022, the Village Board approved an Economic Incentive Agreement with 1144 Lake Street, LLC., for the Dom’s Kitchen & Market grocery store. One of the primary Village Board goals is to reduce retail vacancy in the Village’s business districts and enhance sales tax revenue generation. While that project did not advance, the redevelopment of this landmark building in the Downtown Oak Park business district will bring a new nationally recognized bookstore to the district and expand the Village’s trade area for miles outside the Village. The Village Manager’s Office, Office of Economic Vitality, Development Services, Neighborhood Services, and the Law Department have all been working together to assist with the revitalization of this property. The new bookstore will create cross-shopping opportunities for other retailers, restaurants, and services in Oak Park.
Barnes & Noble will employ approximately 60 new part-time and full-time employees at the store. There are also multiplier impacts of the new retail sales, part-time and full-time permanent employee wages, as well as full-time and part-time construction wages. These new revenues are recycled into the local economy. The Office of Economic Vitality and the Village’s consultant also conducted an Economic Impact Analysis of the redevelopment.
The owner plans to renovate the building, including concrete repair, updating the HVAC system, updating the electrical system, elevator improvements, and a store buildout totaling $3.5 million to make the space ready for a Barnes & Noble bookstore. Cook County offers an economic incentive referred to as “Class L” status, which lowers the assessed value of properties to promote the rehabilitation or restoration of commercial, industrial, and multi-family properties within local historic districts or which are designated as local landmarks. To qualify for the Class L incentive, the building must either be a locally designated individual historic landmark or a contributing resource within a locally designated historic district.
Upon approval of the Class L incentive, the property will be assessed at 10% of its fair market value for the first ten years, 15% in the eleventh year, and 20% in the twelfth year. Please refer to the attached Class L Eligibility Bulletin for more information regarding definitions, eligibility criteria, the evaluation process, and maintaining Class L status.
Importantly, the incentive is only available if the owner’s investment in a substantial rehabilitation of the property meets or exceeds 50% of the building’s assessed market value for the year prior to commencing the work, which for the property in question is 2024. The building’s assessed market value for 2024 is $3,554,313 (source: Baker Tilly Economic Impact Analysis - supplied by the Village), with 50% of that value being $1,777,156. Renovation expenses are expected to be approximately $3,541,000. A project budget for the rehabilitation is included with the application.
On August 14, 2025, the Village’s Historic Preservation Commission found that the Marshall Field and Company building is eligible to be nominated as an Oak Park Historic Landmark. A public hearing followed the Commission’s approval of the Preliminary Determination of Eligibility. That same night, the Commission determined that it would recommend designation of a historical landmark to the Village Board, based on the “Criteria for Designation” in 7-9-4 of the Historic Preservation Ordinance. See Ordinance 25-165)
At the property owner’s request, the Landmark Designation Resolution was not sent to the Village Board immediately. The owner asked that the landmark designation be considered by the Village Board at the same time as the owner’s Class L incentive request. This allows the Village Board to review both items at the same time, as the applicant does not want the property to be designated as a historic landmark unless the Village Board supports the granting of the Class L tax incentive. In addition, the Village’s Class L support is based on the owner’s compliance with the Economic Inventive Agreement attached as Exhibit A to the Resolution.
Timing Considerations
1144 Lake Street, LLC plans to deliver a “vanilla box” to Barnes & Noble in November 2025. Barnes & Noble would then require five months to build out the space to their specifications. Barnes & Noble hopes to open by May 1, 2026. The applicant does not want the property to be designated as a historic landmark unless the Village Board supports the granting of the Class L tax incentive. In addition, the Village’s Class L support is based on the owner’s compliance with the Economic Incentive Agreement.
Budget Impact
The property is not currently generating any sales taxes and has not done so for over 12 years. The property is not generating the maximum property tax revenue since the property has been vacant and is receiving vacancy relief from the Cook County Assessor.
The Village will receive 100% of the new sales tax revenue generated by Barnes & Noble over the 30-year lease term. There is no sales tax rebate contemplated. $300 has been budgeted for this item through the Historic Preservation Commission for a bronze plaque, GL account 1001.49200.332.530662. There are funds budgeted to cover the cost of a Public Hearing notice of $133 from 1001.46202.101.550652.
Staffing Impact
Village staff have spent approximately 120 hours analyzing the project’s economic impact and negotiating the redevelopment agreement. There were also approximately 30 hours of staff impact to process the landmark designation/Class L incentive initially, as well as providing documents to the landlord following Village Board action.
The item aligns with the Office of Economic Vitality’s core objectives to recycle vacant and blighted commercial space.
DEI Impact
The DEI impact will be enhanced by the Village collaborating with Barnes & Noble and other stakeholders to help hire local residents, minority applicants, and veterans.
Community Input
The Historic Preservation Commission reviewed the Class L application at its meeting on October 23, 2025, and forwarded a Resolution recommending approval by the Village Board of the Class L incentive for 1144 Lake Street, and that the project budget and scope of work meet or exceed the Secretary of the Interior’s Standards for Rehabilitation.
Staff Recommendation
The Office of Economic Vitality recommends approval of the Cook County Class L designation and the related Economic Incentive Agreement in order to revitalize a vacant and underutilized historic building in the Village’s Downtown District. The Economic Incentive Agreement and Cook County Class L designation will provide the catalyst for the landlord to undertake the extraordinary renovation and rehabilitation costs. The new Barnes & Noble store will create approximately 60 new part-time and full-time positions.
The Historic Preservation Commission determined that the proposed scope of work meets the Secretary of the Interior’s Standards for Rehabilitation and the Village of Oak Park’s Architectural Review Guidelines. The proposed investment in the building exceeds the minimum requirement for the Class L incentive. Therefore, staff recommends that the Village Board adopt a Resolution confirming (1) that the incentive is necessary for the substantial rehabilitation, (2) that it supports the granting of the incentive, and (3) that it has reviewed and accepted the Historic Preservation Commission’s recommendation of the project.
Advantages:
• Barnes & Noble will provide a new sales tax revenue stream and an enhanced property tax revenue stream, following the extraordinary improvements.
• The Class L and the Redevelopment Agreement will eliminate 25,000 square feet of vacant space in the Downtown District, jumpstart leasing efforts in the district, and create cross-shopping opportunities for other retailers, restaurants, and professional services in Oak Park.
• There will be multiplier impacts of all the wages and salary income from construction jobs and full-time and part-time permanent jobs created by Barnes & Noble.
• The Class L Tax Incentive encourages significant investment that can increase the property’s value and rent potential.
• This action preserves historic landmarks or historically significant buildings by encouraging their preservation and restoration.
Disadvantages:
• A tax reduction for one property might burden other property taxpayers in the Village.
• A decrease in property tax collection reduces money for other taxing bodies.
Alternatives
The Board can elect not to support the granting of the Class L tax incentive.
Advantages:
• There will be no reduction to the total tax base of the Village.
• There will be no reduction of funding to other taxing bodies.
• This action prevents unnecessary subsidies.
Disadvantages:
• The landlord may decide not to move forward with the redevelopment.
• This action can result in a potential scenario where the project does not get completed.
• Without the Class L incentives, historic buildings may fall into disrepair.
• Not renovating the building could inhibit attracting tenants for other spaces in the building and adjacent properties.
Anticipated Future Actions
There are no anticipated future actions in relation to this item.
Prepared By: John C. Melaniphy, Assistant Village Manager of Economic Vitality; and Mike Bruce, Planning & Urban Design Manager/Village Planner.
Reviewed By: Craig Failor, Development Services Director
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Resolution and Exhibits A and B
2. Adopted HPC Resolution
3. Application
4. Drawings
5. Class L Eligibility Application
6. Application Budget
7. Exhibit C
8. Building Plans
9. Class L Eligibility Bulletin
10. RDA 1144 Lake Street (Exhibit A Standalone)