Submitted By
Tammie Grossman, Director Development Customer Services
Reviewed By
LKS
Agenda Item Title
Title
A Motion to Direct Staff to Prepare an Agreement between the Village and WDF-3 Wood Oak Park Owner, LLC As Developer of the Vantage Oak Park Project at Lake Street and Forest Avenue as Recommended by the Oak Park Economic Development Corporation (Oak Park EDC).
End
Overview
Overview
The WDF-3 Wood Oak Park Owner, LLC (“the Developer”) requested through the Oak Park Economic Development Corporation (Oak Park EDC) a financial development incentive to help defer extraordinary expenses related to securing and accommodating a large restaurant user for the development’s first floor commercial space.
Body
Staff Recommendation
Approve the Motion. Staff will then prepare an agreement consistent with the terms recommended by the Oak Park EDC.
Fiscal Impact
Should the Board authorize the improvements, the costs will be included in the 2017 Downtown Oak Park Tax Increment Financing (Downtown TIF) Budget. While the expense can technically be budgeted in the Downtown TIF, the incentive expense may not be deducted pursuant to the settlement agreement with SD97 and SD200. Therefore, it is probable that when the TIF expires in 2019 (final year of collections) and should it have an outstanding obligation (interfund liability), it will need to be covered by the General Fund. However, the Oak Park EDC expects that the Village’s sale tax receipts from the new restaurant will pay the incentive back in approximately six (6) months.
Background
Vantage Development ws designed to accommodate a restaurant tenant, but extraordinary structural modifications are required due to the size fo the proposed user. The developer is providing tenant improvements of approximately $900,000. The Oak Park EDC is recommending that Village incentive be provided to cover architectural, design and other TIF eligible expenses directly related to the these improvements.
Alternatives
Refer the matter back to the Oak Park EDC for additional information and/or further review.
Previous Board Action
This matter is before the Board for the first time.
Citizen Advisory Commission Action
N/A.
Anticipated Future Actions/Commitments
If the motion is approved, staff will prepare an Agreement for the Village Board’s review and consideration.
Intergovernmental Cooperation Opportunities
N/A.
Performance Management (MAP) Alignment
A governance priority for the Development Customer Service Department is Economic Development Management.