Title/Name/Summary
9551 159th Street Crossroads - Escrow Agreement
History
Intercontinental Real Estate and Development Corporation, has approached the Village about a potential mixed use development at 9551 159th Street, approximately the SEC of 159th and LaGrange Road. The developer has indicated that there are potentially exorbitant costs associated with the redevelopment of this property. They have also indicated that some of these costs may be TIF eligible. As such, they have requested that the Village support the creation of a TIF district to make the proposed commercial and owner occupied residential development possible.
To determine if the 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 have drafted the attached escrow agreement and have arrived at the initial deposit amount of $50,000 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 $50,000. 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 Village has previously entered into similar escrow agreements with a developer to investigate the possibility of TIF Districts at the former Andrew Corp. Property, SWC 159th and LaGrange, and 143rd and John Humphrey Drive.
The item is now before the Village Board for Consideration.
Recommended Action/Motion
I move to authorize an escrow agreement between the Village of Orland Park and Intercontinental Real Estate and Development Corporation for the property located at 9551 159th Street subject to Village Attorney review.
And
Authorize the Village Manager to execute all related contracts, subject to Village Attorney review.