Oak Forest officials are seeking to attract major retailers and tax dollars by offering incentives to a grocery store and developer, annexing land and approving a new store.
The City Council on Tuesday approved redevelopment agreements with Cincinnati-based Kroger-affiliate Food4Less and Archon Retail, a division of the Texas-based Archon Group LP.
Food4Less, which is revamping the former Dominick’s building at 159th Street and Central Avenue, will get $200,000 per year from tax increment financing funds with a cap at $2.2 million and 50 percent of sales tax revenues generated up to $2.7 million. The city is also giving the store $250,000 in upfront incentives for refurbishing the facade/entrance to the building. The store could open in January.
Mark McCombs, special counsel for economic development for the city, said incentives were necessary because of the high property taxes in the area and the expense of buying property.
“In order for us as a community to compete with those other areas where land value is cheaper or lower, we’ve got to come forward with incentives,” said McCombs, a Chicago attorney.
To get the incentives, Kroger officials must show good faith that they’re backing the project for the long haul.
The city’s deal with Archon, which is developing 42 acres at 167th Street and Cicero Avenue, will have a similar format, according to Bob McNeill, community development coordinator. But retailers must come on board before the dollar amounts can be decided.
Archon representatives said they are hoping to attract a Lowe’s, Kohl’s and Target, as well as smaller stores and businesses.
Also Tuesday, the council approved annexation of land at 173rd Street and Central Avenue where Arbor Park Middle School plans to construct a new $27 million building that would open in 2006.
