Oak Forest officials asked Bremen High School District 228 Tuesday to approve an extension for a tax increment financing district 13 years before the TIF is scheduled to expire.
The school board did not take action Tuesday but discussed it at a committee meeting April 14, where a few board members called the early timing unusual and had more questions.
Paul Ruane, Oak Forest assistant director of community and economic development, said the request is part of negotiations with developer Deshe Real Estate to build two commercial properties and two 60-unit apartment buildings on the 5100 block of West 159th Street.
Ruane also said the city is interested in more developments in the TIF district and wanted more time to continue revitalizing the area.
Developer Deshe Real Estate Group told the city it would be unable to finance the development without TIF assistance paying eligible expenses of about $8 million, Ruane said.
Deshe requested the TIF be extended 13 to 20 years so the project could receive the the financial incentive beyond its expiration year 2039, he said.
These expenses include removing and replacing structures leftover from the previous tenant, addressing contamination from a previous auto shop, stormwater retention, grading and other site preparation.
The city did receive a no further remediation letter from the Illinois Environmental Protection Agency, Ruane said, but said any disturbance on the site would require additional costs.
“It’s a great opportunity to kind of explore some of these options and ideas that we’ve had for a while, similar to Tinley Park and what they’ve done with their downtown over there,” Ruane said. “Oak Forest is trying to organically find their own footing around our train station as well.”
The typical lifespan of a TIF is 23 years, but that can be extended 12 years with state legislative approval, and lawmakers typically call for letters of support from the taxing bodies substantially affected by TIF, including school and park districts.
If the extension is granted, the TIF would run until 2051.
The district covers land surrounding West 159th Street between Laramie Avenue and the Metra rail running through Oak Forest. The district is also adjacent to Oak Forest TIF three, running to Cicero Avenue.
In a TIF district, property tax revenues for all government bodies are frozen at creation, and the city uses any increase in property tax revenue — the increment — to pay for public improvements such as streets, sidewalks, water and sewer lines or to offer incentives to developers.
The development on West 159th Street that prompted the extension aims to revitalize land that’s been vacant since the previous tenant, a mobile home park, closed more than 20 years ago, said Ruane.
This property is in the 5100 block of West 159th Street at the northwest corner of 159th and Le Claire Avenue, but does not include The Original Pancake House on the street, Ruane said.
The two commercial buildings would each be 3,250 square feet and include drive-throughs, but Ruane said the developer is open to a restaurant with a larger patio than a drive through.
Plans also include two multifamily buildings with 60 units each, 120 units in total, for the rear of the property. These buildings would include amenities such as a gym, coworking space, on-site parking and a few garages.
Ruane said the city has had a hard time finding developers for the site since taking ownership of the property.
He said the land is costly to develop, but the proposed developer, Deshe Real Estate, established a plan the city and its TIF consultants see as a sustainable project. The city is also familiar with the group, as this is their fourth project working together, most of which have been built around Metra.
“They just have taken a liking to catering to the Metra trains station that they’ve been kind of building around,” he said. “They are the most response and up to it, where it makes sense for their returns as well.”
Ruane also said the city is interested in relocating the Wille Brothers Company, a mix concrete supplier, so the city could use the property for redevelopment. The company is located within the TIF district on Lamon Avenue.
He also said if the city receives the extension but finishes projects early, they are open to ending the TIF early.
“Our intentions are to hit the ground running and find different opportunities to utilize it,” he said.
The city recently completed a project to construct 75 multifamily units, 15 rowhouses and about 3,000 square feet of commercial space, in Oak Forest ‘s TIF seven and TIF three.
This project began in 2023 with Desche and 157th LLC and is on Lamon Avenue and 157th Street.
As part of an audit of the TIF during that project, the city spent $4,700 in TIF revenue on preparation and consulting, according to Colleen Julian, Oak Forest finance director.
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