Orland Park officials voted this week to reimburse the potential developer of the village’s Main Street Triangle up to $1 million in costs associated with the project as the village works to negotiate a development agreement with the firm.
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The reimbursement to Edwards Realty Co. could help the Orland Park-based company buy the village-owned property in the district, northwest of La Grange Road and 143rd Street.
The triangle includes the Ninety7Fifty on the Park apartments, University of Chicago Medicine Center for Advanced Care and a multilevel parking garage between the apartments and U. of C.
There are about 9 acres spread among five sites that are open for development and owned by Orland Park.
The village hired Edwards in March 2021 to consult on potential uses for the remaining land, and the Village Board this past August agreed to negotiate a master development agreement with the company for the property. That agreement has not yet been finalized.
Edwards’ proposal includes elements such as an indoor civic amphitheater, five- and six-story buildings that could be home to office space and apartments, and restaurants and retail space.
The money paid to Edwards could come from a tax increment financing district that includes the property, but Orland Park officials also said sales tax revenue from a new business district that incorporates the property could be tapped to make the reimbursement.
In a presentation made to Orland Park officials this summer, Edwards said the triangle is “envisioned as a new community gathering place composed of pedestrian-scaled buildings supporting a mix of retail, office, entertainment, commercial, cultural, hospitality, and residential uses.”
Orland Park has said the intent is a pedestrian friendly development, with a mix of residential uses, such as apartments, and commercial such as restaurants and retail.
Edwards said a focal point of the initial development plan will be what it calls “Hero’s Memorial Park,” south of the 143rd Street Metra station that will honor first responders. It will be near the planned amphitheater, according to the company.
Overall, Edwards estimates developing all of the properties, including residential and commercial, will cost about $253.3 million, and the firm anticipates the village sharing about $49.6 million.
Residential buildings planned would include first-floor commercial space featuring “lively restaurants, bars and entertainment venues,” Edwards told the village earlier this year.
Edwards said that potential rental rates for apartments could range from $1,500 a month for studio units to $2,400 monthly for 2-bedroom, 2-bathroom units.
In its proposal, Edwards included a letter from First Midwest Bank indicating the developer could be eligible to borrow $75 million for the project, based on Edwards’ financial statements.
Edwards said should it be approved as the master developer, it plans to break ground by the middle of next year on three of the properties, including Hero’s Park.
Orland Park can, through the TIF district, use generated funds to reimburse the developer, but village officials have said they will need to either extend the life of the existing TIF district or create a new one.
In a TIF district, property taxes for all government bodies are frozen at levels at the time the TIF is created and any increase due to higher property values, the increment, is used to pay for improvements or incentives.
TIF districts typically expire after 23 years but can be extended to up to 35 years.
The triangle’s TIF first tax year was 2003, and the thinking by village officials is by the time much of the development is completed, the TIF will have expired or have just a few years of life left. That would shorten the amount of time development costs could be recouped.
The term triangle comes from the site’s northern border of the Metra SouthWest Service line and Southwest Highway, eastern border of La Grange Road and southern border of 143rd Street.
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