Title/Name/Summary
Dick's Sporting Goods House of Sport - Redevelopment Agreement Ordinance
History
In March of 2025, the Village Board passed a Tax Increment Financing (TIF) district reimbursement resolution for the proposed Dick's House of Sports at the former Sears location. The resolution allows the Village to investigate establishing a TIF district to support the project and reimburse itself and the developer for eligible expenses if a TIF district is created.
On August 12, 2025, the Village Board approved the major redevelopment deal terms in the form a redevelopment agreement term sheet. Since that time, the Village has been working with representatives from Dick's Sporting Goods to negotiate the redevelopment agreement based on the deal terms approved in the term sheet.
The term sheet was non-binding. However, the approval of the redevelopment agreement will bind the Village and Dick’s Sporting Goods to the terms as set forth and described below.
Project
Dick’s Sporting Goods Inc. has entered into a purchase and sale agreement to purchase the former Sears property in the Village at Orland Square Mall. The Mall has experienced vacancies and decreased foot traffic due to changes in the retail environment and the Sears Parcel has been vacant for approximately 6 years.
Dick's Sporting Goods (DSG) intends to redevelop a portion of the Sears parcel with a Dick's House of Sport, by either (i) a two-level Dick’s House of Sport that occupies a minimum of 90,000 square feet of retail floor area (not inclusive of back of house storage or unused space) consisting of a minimum of 45,000 square feet on each level with stairs between two floors, or (ii) a one-level Dick’s House of Sport with retail floor area that occupies substantially all of the second floor with the first floor being reserved for an alternate retail use.
In either case, the Dick’s House of Sport will include retail space and some or all of the following uses: climbing wall, indoor batting cage, golf simulator, yoga classes, juice bar and running track. The project will also include an outdoor athletic field area unless the developer’s parking plan for the redevelopment of the Sears parcel dictates otherwise.
The project will also include enhancements to the building façade and improvements to parking and other exterior improvements on the former Sears parcel. In addition, to the project, it is anticipated that the developer will renovate the remaining portions of the building not utilized for the Dick’s House of Sport to prepare for future use by one or more to-be-determined retail tenants.
DSG shall commence construction by May 31, 2027, and open to the public by March 31, 2029. DSG agrees to complete the project and open a fully stocked and fully staffed Dick’s House of Sport at that time.
The agreement allows the Village to create a TIF District for this parcel. Nothing shall limit the Developer’s ability to appeal the property taxes, except that if, as a result of such challenge or appeal the equalized assessed value of that portion of the building occupied by the Developer for the Dick’s House of Sport is reduced below eighty dollars per building square foot starting in 2027, Developer shall pay the difference to the Village via a Payment in Lieu of Taxes.
Payment
The initial payment from the Village to DSG will be prior or simultaneous with the closing on the purchase of the former Sears parcel from the current owner. The payment will be made as follows:
$6,000,000 for the acquisition of the parcel;
Up to $800,000 as reimbursement for acquisition-related, development-related and incentive related costs including but not limited to: costs of closing, building shell and construction, exterior improvements, interior renovation, predevelopment, development, design and new construction, professional services, development fees, and marketing and promotional efforts.
The additional $800,000 in TIF eligible expenses are being offered as an incentive because of the rising cost of construction and the fact that DSG has decided to remodel the entire building as opposed to just the House of Sport space.
Stormwater Improvements
All stormwater improvements required by the project for the former Sears parcel and/or the Orland Square Mall as may be required by MWRD, Village, or other applicable regulations shall be the responsibility of the Village, and shall be constructed and maintained by or on behalf of the Village, at the sole cost and expense of the Village. The Developer however, shall be responsible for the maintenance, repair and replacement of the actual parking lot exclusive of the stormwater improvements.
Traffic Signal Improvements
The Village shall replace and maintain, at the sole cost and expense of the Village, the traffic signals at the intersection of 151st and Regent Drive. Both stormwater and traffic signal improvements are TIF eligible expenses.
In the event that DSG defaults by failing to open to the public for at least one day, DSG shall be required to repay the Village, within 30 days after demand by the Village, the Initial Payment and all Subsequent Payments made by Village to DSG pursuant to this agreement.
Tax Increment Financing (TIF)
The Village will create a TIF to recoup, in whole or in part, the incentive funds.
The developer has agreed to be part of the TIF. TIF eligible expenses include but are not limited to costs of closing, building shell and construction, exterior improvements, interior renovation, predevelopment, development, design and new construction, professional services, development fees, and marketing and promotional efforts.
Business District
The Village may elect to create a Business District (BD) to recoup the incentive funds.
DSG consents to the inclusion in the BD with an additional sales tax not to exceed 1%.
This item is now before the Committee of the Whole for consideration.
Recommended Action/Motion
I move to recommend adopting an Ordinance entitled: AN ORDINANCE OF THE VILLAGE OF ORLAND PARK TO ADOPT A REDEVELOPMENT AGREEMENT WITH DICK’S SPORTING GOODS, INC. FOR THE REDEVELOPMENT OF THE FORMER SEARS PARCEL AT ORLAND SQUARE MALL IN THE VILLAGE OF ORLAND PARK, ILLINOIS.