Title/Name/Summary
Andrew Corporation Property 10500 W 153rd Street - Escrow Agreement
History
Lake Ventures LLC has approached the Village about a potential residential development at the former Andrew Corporation Property at 10500 W 153rd Street. The property was home to the Andrew Corporation for many years and was utilized as a manufacturing and office facility. After the Andrew Corporation relocated their headquarters out of Orland Park it was discovered that there was environmental contamination on the property.
The owner of the property at the time remediated the contamination to a commercial/industrial standard. The new proposal calls for a residential development and in order to make that development possible the site needs additional remediation to the IEPA residential standard. Due to the potential high cost of the remediation in addition to all other typical development costs the developer has requested support for a tax increment financing district (TIF) to make the development possible.
In order to determine if a TIF is feasible, the Village must engage legal and financial consultants in order to conduct the required eligibility studies and draft the redevelopment agreement.
The developer has agreed to establish an escrow account with the Village in order to ensure the Village can promptly address and pay for the due diligence. The Village and developer has drafted the attached escrow agreement and have arrived at the initial deposit amount of $85,000 to accomplish the due diligence. The funds can only be used for addressing “soft costs” incurred by the Village in furtherance of the due diligence.
Within 14 days of the execution of the agreement, the developer shall deposit a check for the escrow fund in the amount of $85,000. At any point once the escrow balance falls below $10,000 the developer and the Village will meet to discuss the appropriate next deposit.
The execution of this escrow agreement does not obligate the Village to establish a TIF district, take any zoning action or issue any building permits for the subject property.
The item is now before the Village Board for consideration.
Recommended Action/Motion
I move to authorize the Village Manager to execute the escrow agreement titled, Escrow Agreement - Andrew Corporation Property 10500 W 153rd Street, subject to Village Attorney review.
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