Title/Name/Summary
A Resolution Designating an Area as Blighted and in Need of Renewal and Authorizing and Consenting to a Cook County Class 7b Property Taxes Rate Incentive Designation for Real Property Commonly Known as 15901 92nd Avenue and 9600 159th Street
History
The applicant, Amazon Retail LLC, has previously requested a resolution supporting and consenting to a Class 7b tax incentive from Cook County for the purposes of redevelopment and occupancy of vacant property located at 15901 92nd Avenue and 9600 159th Street. The owner plans to construct and operate an approximately 225,000 square foot retail store on the subject property.
The Village Board of Trustees approved a special use permit for a planned development for the subject property on January 19, 2026. The project has proceeded to site work, and the building permit is pending issuance. The Village Board approved a resolution supporting and consenting to the Class 7b designation for the subject property on February 16, 2026.
To apply for the incentive, in addition to the resolution of support, the property must be in a state, local or federally recognized blighted or conservation area. If none already exist, the local municipality can pass a resolution designating the area locally. The following summarizes the contents of the resolution and the analysis completed by the applicant.
Detailed Development Plan
A specific development plan has been submitted to the Village, including but not limited to: architectural exhibits and building plans; site plans demonstrating the relationship of the proposed development to its private and public surroundings including open spaces, service areas, driveways, parking areas, walks and adjacent streets, sidewalks and buildings.
Economic Feasibility
The Applicant has provided a pro-form financial statement that clearly demonstrates that with 7b incentive, the proposed development is economically viable and will be able to sustain itself beyond the incentive period.
Proof of Financing
The Applicant has identified the amounts, sources and basic terms of proposed debt and equity financing for all aspects of the development, including both private and public sources of all funds.
Experience and Means of Owners, Developers, Tenants and other Interested Parties
Amazon Retail, LLC has demonstrated experience and financial strength, with the Class 7b incentive, to assure the project’s viability.
Development Schedule
The applicant has provided a development schedule that includes the date the construction starts, the project’s time of completion and the projected date for occupancy and sales.
The following are specific findings based on professional studies and their own experience in governing the Village of Orland Park.
Lack of Growth in Assessed Value or Equalized Assessed Value
The assessed value of the property and property taxes currently generated reflect significant under-performance relative to its potential.
Structure and site improvements on the former Petey’s II parcel adjacent to the vacant land were deteriorated, dilapidated and physically functionally obsolete.
“But for” the provision of the Class 7b tax incentive, the potential investment returns from the redevelopment of the property and occupancy and operation of a proposed Amazon store would be too low relative to the associated risks and cost to justify the investment of capital and entrepreneurial resources to undertake the property redevelopment, store construction and operation of the store.
The cost of investment or return on assets for the proposed redevelopment of the property and the construction and operation of the Amazon store of 5.72 percent is estimated at 1.38 percentage points below the annual return on assets produced by Target of 7.10 percent and 4.38 percentage points below the highest return on assets of 10.10 percent generated by Costco stores.
The 7b incentive would increase the estimate on return on costs or investments by nearly one-half percent to nearly one percent to an estimated 6.19 percent to 6.62 percent. This is likely close enough to put the project over the minimum feasibility threshold.
Due to age and antiquated design and configuration and lack of maintenance and reinvestment in buildings and public infrastructure around the Subject Property, the site improvements are functionally and competitively obsolete. The physical (and design) obsolescence of the site improvements reflects the age of the property and beg for redevelopment.
Real Estate Tax Analysis and Study Clearly Indicate the Failure of the Site to Support Meaningful Tax Growth and Generation.
Durin the last six years, real estate taxes have declined, remained stagnant or potential real estate taxes are not being fully realized due to the depressed condition of the area, and subject site. The applicant provided documentation included in the resolution that indicates that the site’s EAV is increasing at a rate well-below the CPI and at a rate that is less than the balance of the community over the past six years.
Documentation of Viability and Timely Completion
Given that the project has been approved has completed building permit review and continues to move forward provides a reasonable expectation that the redevelopment project is viable and likely to go forward on a reasonably timely basis if granted Class 7b designation and therefore result in the economic enhancement of the area.
Assistance and Necessity (the “but for” Test)
The assessed value of approximately only $188,000, equalized assessed value of only $570,000 and property taxes of only approximately $47,000 generated are “underperforming” or “lagging” relative to the amount of value and taxes that the property can potentially generate.
As previously mentioned, the estimated increased return on costs by nearly one-half percent to nearly one percent to an estimated 6.19 percent to 6.62 percent. This is close enough to put the project over the minimum feasibility threshold. Once that minimum feasibility threshold is bridged, with the power of the Amazon name, demonstrated retail sales and overall business experience and success, it is clear that this redevelopment project will be an asset to the Village of Orland Park, the County of Cook and the State of Illinois.
The Project Must be Projected to Increase Tax Revenue and Employment
Compared to current taxes associated with the property of $46,945, even with the Class 7b tax incentive, annual property taxes are estimated to be approximately $945,000 higher at nearly $992,000.
According to the applicant the project will generate 200 construction jobs and 500 recurring on site job and associated labor.
Ultimately, the provision of the Class 7b tax incentive will contribute to the feasibility of the proposed redevelopment and construction and operation of the proposed Amazon store that will
Result in the eradication of blight;
Put the property into productive use;
Produce in the first year a significant increase of an estimated approximately $3,670,179 in assessed value and $11,139,000 in equalized assessed value above the current value and generate much greater property taxes of approximately $992,000 than the current $46,945 in property taxes;
Create 200 construction jobs and 500 permanent jobs;
Generate sales taxes and other tax revenues not currently produced; and
Act as a catalyst and confidence boost for other property owners and businesses in the area to emulate the investment and maintain and enhance their properties to preserve the viability of the LaGrange Road corridor as commercial, tax and job generating location.
Recommended Action/Motion
I move to adopt the resolution as presented, subject to Village Attorney review.
(Full Motion not necessary to be read)
I move to adopt a Resolution entitled "A RESOLUTION DESIGNATING THE AREA AS BLIGHTED AND IN NEED OF RENEWAL AND AUTHORIZING AND CONSENTING TO A COOK COUNTY CLASS 7B PROPERTY TAX RATE INCENTIVE DESIGNATION FOR REAL PROPERTY COMMONLY KNOWN AS 15901 92ND AVENUE AND 9600 159TH STREET, ORLAND PARK, ILLINOIS AND IDENTIFIED AS PROPERTY INDEX NUMBERS 27-21-201-002-0000 AND 27-21-201-003-0000 ("SUBJECT PROPERTY") (AMAZON RETAIL, LLC).