The Oswego Village Board has approved its largest-ever annexation agreement, one that will add up to 1,400 homes and a 500,000-square-foot shopping center to the rapidly growing village of about 13,500.
Under the agreement, Oswego will annex about 600 acres south of U.S. Highway 34, west of Douglas Road, north of Wolfs Crossing Road and east of the Fox Bend Golf Club.
Inland Real Estate Development Corp. will develop the residential component over the next 10 to 15 years, while Minnesota-based Ryan Cos. USA Inc. plans to start building the sales- and property-tax-rich commercial portion this year.
Oswego will provide sales tax rebates worth between $4 million and $5 million to Ryan during the first 10 years of operation, said Michael P. Cassa, Oswego Economic Development Commission executive director.
Those rebates, which range from 25 to 75 percent of village sales taxes, are designed to reimburse a portion of the money Ryan will spend to upgrade infrastructure and to use high-quality building materials demanded by the village, Cassa said.
“Technically, they are not getting incentives,” he said. “They are getting a reimbursement.”
The rebates also are intended to ensure that the commercial portion of the development is completed quickly and to encourage retail uses over office buildings, Village Administrator Bruce Bonebrake said.
“The more money the developer makes, the more money we make,” he said.
The shopping center, which will include a Target, Home Depot and Dominick’s Fresh Store, should generate about $1.7 million a year in village sales taxes and about $1.4 million annually in property taxes, with more than $850,000 going to Oswego Community School District 308, officials said.
Ryan plans to build the $42 million shopping center on a 68-acre site south of U.S. 34, just east of the Fox Bend Golf Course and west of a realigned Douglas Road.
Houses dominate Inland’s plans for the Greenside at Mill Race Creek development, but town homes and duplexes also will be part of the mix.
Inland will donate 31 acres to the school district, make an upfront payment of $200,000 to the district and provide another $500,000 to the district when it is ready to build a local school.
