I wanted to take a few moments to discuss an exciting proposed project that will be a cornerstone to revitalizing Downtown Tinley.
The Boulevard at Central Station is a four-story, mixed-use development project that will sit on the three acres of vacant land south of the Oak Park Avenue train station. This project has been talked about by various village boards for more than a decade. Once complete, the Boulevard will consist of 165 residential units and nearly 30,000 leasable square feet of commercial space and will bring the density required to create a vibrant, successful downtown.
The development will be constructed in two phases. Phase One will include 66 residential units, with about 15,000 square feet of leasable commercial space and upscale amenities for the residents. Part of the commercial space will be dedicated to a white-tablecloth, full-service restaurant to complement all of the other great businesses in Downtown Tinley and make the area a prime destination. Phase Two will include 99 residential units, about 15,000 square feet of leasable commercial space, a 181-space parking garage and a swimming pool for the residents.
This project would not be possible without the New Bremen TIF District, which the Village created earlier this year to replace the aging Main Street South TIF. Projects like the Boulevard are why we created the New Bremen TIF and the Main Street North TIF in the first place – to attract high-quality developments and bring commercial development to Downtown Tinley. It’s important to note that each of the local affected taxing bodies supports this new TIF. These types of projects, along with the new plaza that will begin construction next year, promises to breathe new life into Downtown Tinley.
The development team, which consists of Hansen Development and Joe Rizza Auto Group, is requesting $2.2 million in upfront funds to assist with the estimated $3.3 million in public infrastructure improvements the location needs such as sidewalks, burying utility poles and water mains. These funds will be reimbursed to the Village as increment is generated by the project. Many of these improvements would have to be made by the Village regardless of this particular project due to aging infrastructure.
The developer has agreed to pay for all public improvements greater than the $2.2 million incentive, no matter the costs. Having the developer perform these improvements is beneficial to us as a Village because it’s more efficient for them to do the improvements now with the new development improvements, than to do them on our own. The developer can better coordinate the work of the various contractors and avoid conflicts that can result in construction delays. The estimated costs of the infrastructure improvements are detailed on pages 91 to 93 in the packet linked near the end of this article.
The developer is also requesting $4.8 million in tax increment development to assist with TIF-eligible expenses in the estimated $32.7 million private development. A major objective of this incentive is to help finance the commercial development portion of this project, which the Village believes is important to the growth and revitalization of the downtown area and the Village economy. It is also important to note that the TIF funds supporting this incentive will be generated by the success of the development and will not include any Village funds. Furthermore, there are timetables in terms of construction that incent the developer to construct the project in a timely manner.
The Village will share as much as 50% of the yearly TIF increment with the developer until the Village receives all of its $2.2 million in public infrastructure incentives back, after which the developer will receive up to the maximum $4.8 million based on documented TIF costs.
The other parts of the incentive include a permit fee cap of $100,000 and a land swap. The full details of the incentive package were included in the Village agenda packet for the Oct. 9, 2018 Committee of the Whole meeting, but I have included a direct link to this 114-page document for your convenience. The estimated value of the incentives is about $7.5 million.
Incentives for development projects like this are thoroughly reviewed by staff and the Village Board. They are the result of extensive meetings and negotiations.
I invite all of you to read more about this project on the Village’s Current Projects page. This project will be up for approval at the Nov. 6 Village Board meeting.
Until next time, have a great Halloween and be sure to visit us at the annual Boo Bash, happening from noon to 3 p.m. this Sunday in Zabrocki Plaza.
'For the Record' archive