Simplifying Economic Development in Lombard Presentation to the Lombard Area Chamber of Commerce & Industry September 20, 2017
Simplifying
Simplifying Incentive Based Agreements Economic Incentive Policy • Adopted November, 2015 • Updated September, 2016
345 W. Roosevelt Road 2013-2016
Mariano’s 345 W. Roosevelt Road • Economic incentive between developer, Lombard and School Districts 44 & 87 “Closes the Gap” and meets a “But For” standard • Incentive is performance based on future sales tax revenues from development
Mariano’s 345 W. Roosevelt Road Figures: • $25,500,000 redevelopment project costs • $3,000,000 NPV incentive, based upon generated state sales and PFE taxes • $37,500,000 baseline sales figure • 20% cannibalism factor, then 50/50 share • $7,800,000 in share sales & PFE tax generated over agreement life • $239,000 in additional annual property tax revenue
Mariano’s Approved Site Plan
Mariano’s
Mariano’s Fuel Station
Bluestone Development/ Thornton’s
Bluestone Development/ Thornton’s
Bluestone Development/ Thornton's Economic incentive to address roadway improvements adjacent to site (no incentive for actual development) • Reconstruction of Broadview Av. • Lane enhancements to Route 53 & North Avenue Street improvements financed by future sales tax dollars generated by site – no cost to taxpayers or impacts upon the Village’s CIP
Bluestone Development/ Thornton's Figures: • $7,000,000 construction project in total • Up to $587,000 paid out in a performance based state sales tax rebate / up to a 10 year period; tied to actual construction costs • Village receives first $25,000 annually, plus the additional property EAV
Sam’s Club 611 E. Butterfield Road
Sam’s Club 611 E. Butterfield Road
Sam’s Club 611 E. Butterfield Road Economic Incentive, consisting of future performance based sales tax rebate approved by Village Board in March, 2016 Performance based agreement • $19,142,000 est. project costs • Up to 10 years, $2,500,000 NPV in State Sales Taxes • Village receives first $136,000 annually
Sam’s Club 611 E. Butterfield Road Status: • 135,000 sq. ft. warehouse club use with gas station approved by Village Board • Long-term lease signed • Buildings demolished • Site permits ready for issuance • Awaiting Sam’s to bid/start project
Yorktown Commons
Yorktown Commons Entitlement Approval • Teamwork Approach with KKR with significant public engagement • Set “rules of the game” in a Form -Based Code reduces market uncertainty • Allows for “fast - track” approvals
Yorktown Commons Utility Incentive Agreement Recognizing need for additional capacity, YTC constructs sanitary sewer pump station and sewer line. Lombard waives utility connection charges (building permit and GWA fees still collected) Village gets new $1.6 M lift station constructed before development occurs (without impacting Village CIP) Status: Under construction
Yorktown Commons GrayStar Development Multiple Phase, $150,000,000 capital investment into community
Yorktown Commons GrayStar Development • GrayStar received approval for Parcel 1 and Parcel 2 in the Yorktown Commons Planned Development • Construction underway
Yorktown Commons GrayStar Development Project Details • Elan (Parcel 1) – formerly a vacant lot • 4 story, 290 unit market rate apartment building • Parking garage, concealed from street view • Overture (Parcel 2 ) – former Bamboo Room • 175 unit apartment building, marketed to active adults • 221 space parking garage
Yorktown Commons Elan – Parcel 1
Yorktown Commons Elan - Parcel 1
Yorktown Commons Overture - Parcel 2
Yorktown Commons Overture - Parcel 2
Yorktown Commons Future Developments Parcel 3 – commercial building • No word on proposed developer or development timeline Parcel 4 – Yorktown Convenience Center tract • No pending developer or development timeline • Residential Use(s) to be determined based upon Form-Based Code
Simplifying Non-Traditional Incentive Agreement LPFC Restructuring Agreement
LPFC Restructuring Agreement • Water main installed as part of original hotel construction • Paid from original LPFC bond issue • Village will reimburse the LPFC for the bond funds provided to cover the $3,000,000 cost of upgraded water main which was done in 2006 • Additional funds for TIF eligible projects
LPFC Restructuring Agreement • Water main upgrades would have been necessary eventually • Support growth of Yorktown and supply water to residents and businesses • Release from future appropriation requests
LPFC Restructuring Agreement Overall Benefits of Hotel to Lombard • Visitors spend $134/day • Meeting attendees spend 2x that amount • 130,000 overnight stays at hotel and conference center in 2016 • $17.4 million spent in Lombard area (conservative) • Conference attendees also stay at other Lombard hotels
Area Developments Since 2007 (>$225,000,000)
LPFC Restructuring Agreement Additional Information http://villageoflombard.org/hotel
Simplifying Butterfield Yorktown TIF District • Northern Seminary • Yorktown Area (portions)
Proposed Butterfield Yorktown TIF District NBTS will be relocating and placed their campus on the real estate market Recognizing a number of neighboring properties may also have development or redevelopment challenges Declining EAV from 2010 to 2015 for many parcels Desire to be proactive in addressing potential future market challenges in the corridor
Tax Increment Financing (TIF) One of the most effective tools available to municipalities to encourage economic development One of the few economic development tools available in Illinois Provides municipalities options for funding needed public improvements
Tax Increment Financing (TIF) Help local governments restore “blighted” areas or jumpstart economically stagnant areas Helps governments attract private development and redevelopment If approved, this would be the 4 th TIF District in Lombard
Proposed Butterfield Yorktown TIF District
Redevelopment Plan (TIF Budget) Provides a maximum limit of expenditures by statutory categories covering the life of the TIF (Plan identified up to $125,000,000 in potential eligible costs to support EAV increase through development activity) Village is not committed to finance any of the $ redevelopment project costs It is not a commitment to spend
Approval Process Approved Reimbursement Resolution – April 6 Announced TIF Plan Availability – June 15 Adopted an Ordinance Calling for a Joint Review Board (JRB) meeting – July 20 Held JRB Meeting – August 11 (supported by JRB) Hold Public Hearing – September 21 Adopt Final Ordinances to Create TIF – October 19
Economic Incentive Policy Tool for Other Key (Re)development Properties, as identified in the 2011 Economic Strategies Report, including but not limited to: • Dania site • Route 53 & North Avenue (NE corner) • High profile properties • Larger vacant storefronts • Other sites which could benefit from sales tax generating activity
Simplifying Projects Under Construction
Yorktown Center Tenancies Yorktown’s “health & beauty precinct” tenants include: • The Barre Code (opened June) Cycle Bar (opening this month) • Coco Nail Bar (interior next to the Post Office – opening November) • Amazing Lash Studio (opening in November) • • Orange Theory Fitness (timing their opening to be late December) • European Wax Center (in lease negotiations) Other openings expected in October/November include: Ben’s Pretzels (lower level, south wing) • • I Talk N Repair (lower level, south wing).
Keystone Properties 781-791 E. Butterfield Road
Keystone Properties 781-791 E. Butterfield Road
Fountain Square of Lombard/ Yard House Restaurant
DuPage Medical Group 2725 Technology Drive 8,500 square foot addition and 27 new parking spaces
Medical Office Building 601 E. Roosevelt Road Former O’Reilly Auto Parts store
Koocoo’s Peri Peri Flame Grill 820 E. Roosevelt Road
Park District Recreation Center 543 E. Taylor Road Includes indoor basketball courts and fitness amenities • Construction underway – July 1, 2018 proposed opening •
CPSA High School Building 331 W. Madison Street
Airhart Construction/ Park Place of Lombard
Charred Restaurant 105 W. St. Charles Road
Simplifying Other Approved Projects
Babcock’s Grove Expansion Bonfil Black 101 W. St. Charles Road
Other Downtown Projects • Schiller Real Estate @ Properties – now open • Ruff Life – now open • Sky Center Martial Arts – expansion underway • BP – site improvements underway • Brick’s – grant approved
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