The village of Skokie and the developer of a mixed-use development project planned for the heart of downtown have entered into an agreement calling for sharing some costs associated with the project.
The Skokie Village Board approved the development agreement with 8000 North LLC at the Feb. 20 meeting, and is gave the green light for the $1.5 million sale of village-owned property to the developer.
Under the pact, the village will build a garage on the property, which the developer will lease and then purchase from Skokie in 10 or 12 years.
The agreement also allows the developer use of up to more than $5.9 million in tax increment finance funding to help pay for construction costs officials estimate at more than $64 million.
Should the developer sell the property, provisions of the deal call for the village to share in the profits of that sale.
“Given the costs associated with the site preparation and the construction of such a project, the project would not be feasible without financial assistance from Skokie,” said village attorney Michael Lorge.
Trustees also approved at the meeting the site plan for 8000 North, a project that includes 153-unit luxury apartment and retail building pegged for the northwest corner of Oakton Street and Lincoln Avenue.
The residential building will be 12 stories high with a courtyard and an attached five-story parking structure. Retail space including a restaurant will be part of the ground floor along with a small drive — referred to as a motor court — for dropping off and picking up customers, according to project plans.
The garage will accommodate 265 parking spaces, 73 of which will be available for public parking, according to the plans. The project also calls for four on-street parking spaces with the option of adding up to three additional spaces.
The 42,000 square feet of land in one of downtown Skokie’s most conspicuous locations has been vacant for “many, many years,” Lorge said.
Lorge said the village expects the project to create commercial and residential growth, impact the development of nearby properties, increase the property tax base of the district and generate new sales taxes.
According to Lorge, a market feasibility and demand study commissioned by Skokie demonstrated “a strong need for new quality housing” in the development zone and concluded that additional rental property would spur economic activity.
Calling it “a pretty complex agreement,” Trustee Randy Roberts asked about how village funding will work for the project.
Construction of the main building and the garage are expected to be funded through different sources, Lorge said.
A revenue bond to help pay for construction of the garage will be supported by developer lease payments to Skokie, he said.
The village’s portion of construction costs for the residential-commercial building will be paid for from TIF funds after village leaders decided the project would be a good investment, officials said.
Outside experts identified potential revenue from the project and determined there were some specific “TIF-eligible costs” associated with construction, Lorge said.
“The village of Skokie has spent countless hours working with and negotiating with the principals from the 8000 North LLC group,” Lorge said. “We have arrived at a development agreement that sets out financial obligations to bring to fruition this great project for our village.”
