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Simplifying Economic Development in Lombard Presentation to the Lombard Area Chamber of Commerce & Industry September 20, 2017
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
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 4th TIF
District in Lombard
Tax Increment Financing (TIF)
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’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).
Yorktown Center Tenancies
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
Oakview Estates
400 E St. Charles Road
• 10 Unit Single Family Townhouse Development
• 3 Buildings: 2 buildings with 4 dwelling units each and one duplex
• Each unit will include a two-car attached garage and roof-top deck
Oakview Estates
400 E St. Charles Road
• 10 Unit Single Family Townhouse Development
• 3 Buildings: 2 buildings with 4 dwelling units each and one duplex
• Each unit will include a two-car attached garage and roof-top deck
Over the Rainbow Apartments
1005-1027 E Division Street
• Former Deicke Home site
• 14 unit apartment development serving individuals with disabilities
• Building on the east side of the site will be demolished
Emerald Homes/Windsor Place
222 E. Windsor Avenue
• Former Allied Drywall Site
• 12-lot single family home subdivision
• Construction to start in Fall, 2017
Emerald Homes/Windsor Place
222 E. Windsor Avenue
High Point Shopping Center
Planned Development Amendment
High Point Shopping Center
Planned Development Amendment
35,000 sq. ft. fitness center with pool
High Point Shopping Center
Planned Development Amendment
High Point Shopping Center
Planned Development Amendment
New free-standing sign package
Simplifying
Other Pending
Projects
Holiday Inn Express Hotel
St. Regis & North Lake Dr.
• Immediately behind Greek Islands Restaurant
• Approximately 96 rooms
• Workshop before Plan Commission – September, 2017
Hilton Tru Hotel
550 E. 22nd
Street
• Site previously approved as townhome development in 2016
• Approximately 90 + rooms
• Workshop before Plan Commission – September, 2017
101-109 S. Main Street Site
101-109 S. Main Street
2017 Actions
• Workshop Before Lombard Village Board
• Request for Proposals (RFP) effort undertaken during Summer, 2017
• Single User Grocer sole desired land use
• Outreach to grocers and development community
• RFP Process closed – September 5, with no interested parties seeking the site
• Village will be reviewing site in greater detail to determine next steps, with a focus upon private redevelopment
Simplifying
Data Reflecting
Development Activity
Permit Improvement Value
• 2015 - Jan./Aug. = $ 34.8 M
• 2016 - Jan./Aug. = $ 54.3 M
• 2017 - Jan./Aug. = $ 114.0 M
Building Permit Applications by Year
2,000
2,200
2,400
2,600
2,800
3,000
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Pro
j
Building Permit Fees Collected
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
$2,000,000
$2,200,000
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
(Pro
j)
Simplifying
Delivering on Expectations
Service Enhancements
• Web-Site Enhancements
• MyPermits Implementation
• On-line contractor registration
• Instant Permits
• Over the Counter Permits
• Electronic notifications on permit approvals
• Electronic Plan Review – in development
• Optiview Plan Retrieval
Website Enhancements
Everything you wanted to know – online for 24/7 access!
• Building Division handouts on decks, fences, etc.
• Permit application
• Report a Concern for Code Violations
• Available commercial properties
• Maps
• Information on current and proposed development projects
• Historic survey of properties
Future Stuff
Everything you wanted to know – online for 24/7 access!
• On-Line Plan Submittal
• On-line Plan Approval, Payment and Issuance
• Enhanced planning information
• GIS enhancements
• Code enforcement
• Blending technology and inspections (Facetime)
• Future technologies
2018 Goal: On-line Electronic
Plan Submittal
Future Goals: Plan Review
Future Goals: Virtual and Remote
Inspections
Simplifying Economic Development:
Resources
Many resources available to assist
existing and prospective businesses
William J. Heniff, AICP
Lombard Director of Community Development
255 E. Wilson Avenue
Lombard, IL 60148
(630)620-3599
