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A Resolution Approving an Economic Incentive and Redevelopment Agreement Between the Village of Oak Park and 1144 Lake Street, LLC and Authorizing Its Execution
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Introduction
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This is a resolution approving an economic incentive agreement with 1144 Lake Street, LLC
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Recommended Action
Staff recommends that the Village Board approve the economic incentive agreement.
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. 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 an economic incentive agreement in which the Village would provide a sales tax rebate to the developer for the municipal and home rule sales taxes generated by a new Barnes & Noble bookstore. The Landlord plans to initially undertake over $4.0 million in extraordinary renovation costs on the nearly 100-year-old building. This includes hard costs of $2.6 million and soft costs of $1.4 million. This does not include the build-out costs to be paid for by Barnes & Noble. The Village would retain 50% of the sales tax revenues and rebate 50% of the sales tax revenues for the first 20 years. The property has been vacant for over 12 years and has not generated any sales tax revenue. The extraordinary costs to bring the building up to current building standards will allow the space to be productive again for Barnes & Noble or any other retailer in the future. The economic incentive agreement will provide the landlord with a sales tax rebate not to exceed $2.0 million.
The Village Board previously 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 bus...
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