While the four-story building won’t be fully completed for at least another 18 months, developers of one of the biggest projects in Western Springs are already asking about receiving tax increment finance revenue incentives that won’t begin pouring into the development until long after its completion.
Officials from Foxford Station, LLC, the group building the retail and residential condominium project at the corner of Wolf Road and Burlington Avenue, met Monday with the Planning and Zoning Committee to discuss the economic impacts of the project and TIF incentives the developer hopes to receive.
Foxford Station is looking to formalize a deal to regain 70 percent of the TIF dollars that accrue from the development over the 23 year life of the district. The village would receive the other 30 percent, according to the proposal. Foxford officials are also looking to recoup roughly $2 million in pre-construction costs.
The Village Board approved preliminary plans and zoning changes for the Foxford Station development in February 2015 for the redevelopment of the vacant Tischler’s grocery and Breen’s Cleaners properties, which had been vacant for more than 10 years. Once completed, Foxford will offer about 3,600 square feet of commercial space on the first floor and 28 condominium units on floors two through four, which will range from 1,700 to 3,100 square feet. All of the units will have some sort of outdoor patio or balcony space.
The Village Board approved its first TIF district in January 2015, TIF districts are an economic tool used by municipalities to bring in new development and improved infrastructure. In a TIF district, the amount of property tax paid to local governments within the district is frozen for up to 23 years, and new tax dollars generated by rising property values — the increment — are used to improve infrastructure to promote development in the district.
Village attorney Michael Jurusik said that when the TIF district was established, a separate TIF tax fund was set up for the Foxford project, and that all the future tax money generated from the project would go into that separate fund.
John McFarland, project manager for Foxford Station, said this request puts the burden on the developer to get the project up and going as soon as possible, and to get the first floor retail and the three-story condominium units sold and occupied by tenants, as they will not recoup any of their constriction costs until the project begins to bring in revenue. The construction cost of the project is expected to be about $8 million, according to developers.
Community Development Director Martin Scott said the incentive request proposal is expected to go before the Village Board within the next month, and could be voted on later this spring.
McFarland said the site has been cleared, and developers are working with utility companies to relocate power and cable lines on the site. He said the goal is to break ground on the project in April, with the goal of having occupancy for the new condominium units by the end of 2018.
McFarland said the developer will be adding about $2.2 million in public improvements, such as street resurfacing, storm water management and other streetscape improvements to the area.
“It’s a win-win for the village, as they won’t be on the hook for any of those improvements,” McFarland said.
David Heitz is a freelance reporter for Pioneer Press.
