Title
Text Amendment - Land Development Code Section 5-112.H. Impact Fees
History
On January 6, 2025, the Board of Trustees adopted Ordinance No. 5971, amending Ordinance No. 2084, revising and updating Development and Subdivision Exactions; Dedication of Land and Fees in Lieu of Dedication. The amendment included a requirement for the Village to enter into Intergovernmental Agreements (IGAs) with other taxing bodies prior to the collection and distribution of impact fees.
Following the 2025 amendments, the Village, in consultation with the other taxing bodies, has determined that additional amendments are needed to the Land Development Code in order to adequately address the impact of residential development. Although the taxing bodies and Village continue to be in communication regarding the content of the IGAs and the additional updates to the impact fee regulations, new residential development continues to move forward and fees are required to be collected prior to the issuance of building permits.
The premise behind these regulations is to ensure land and fees that are attributable and proportionate to growth-related development within the Village, are provided to serve new residential development. The following impacted use categories are included in the proposed ordinance:
- Parks
- Schools
- Library
The proposed text amendment essentially returns to the pre-January 2025 ordinance adoption, with the exception of making the previously-applied transportation exactions section intentionally left blank, as the return on investment to prepare the research and reporting to support the exaction is now outweighed by the proceeds it produces.
Please note this proposed return to pre-January 2025 regulations may be an interim measure.
Action on this item will allow appropriate impact fees and other development and subdivision exactions to be imposed while the Village has adequate time to work with stakeholders and other taxing bodies to develop amendments and necessary intergovernmental agreements that ensure that the impact of new development on all parties is adequately and fairly addressed. As the updated impact fee regulations cannot reasonably or effectively be implemented without the IGAs and additional studies and financial information from the other taxing bodies, the Village of Orland Park has determined that it is necessary to revert back to the impact fee ordinance and calculation structure in place prior to the 2025 amendment as an interim measure to allow these fees to continue to be collected during the negotiation and preparation of the amendments and IGAs.
While there is no mandatory requirement to collect impact fees, the Village is obliged to adhere to specific state laws if such fees are collected.
Recommended Action/Motion
Recommended Action
Staff recommends to accept and make findings of fact as discussed at this Plan Commission meeting and within the Staff Report dated August 14, 2026;
And
Staff Recommends the Plan Commission recommend approval of the Land Development Code Amendment for Section 5-112.H as presented in the attached report titled "Text Amendment - Land Development Code Section 5-112.H. Impact Fees" dated August 14, 2026.
Recommended Motion
Regarding Case Number 2026-0821, I move to approve the Staff Recommended Action as presented in the Staff Report to the Plan Commission for this case.