Title/Name/Summary
Quarterly Economic Development Update - Incentives Refresher
History
The Village continues to seek ways to remove barriers to high-quality development in Orland Park. The costs to develop property in the Village is always increasing and as the Village becomes more built-out the remaining property often has development challenges that lead to even higher development costs. As such the Village offers a range of incentives for new and redevelopment throughout the Village.
The purpose of the programs are to stimulate the local economy by recruiting and retaining businesses, providing employment opportunities, expanding the goods and services available for purchase and consumption by businesses and residents of the Village, and increasing the taxes collected by the Village.
The following are the Village’s current incentive programs that were previously adopted by the Village Board including at it's June 1, 2020 Board meeting:
Sales Tax Sharing Agreements
To induce new development and redevelopment the Village utilizes sales tax sharing agreements for large sales tax generators. Projects can qualify for 50% sales tax sharing for a maximum term of ten (10) years. The maximum value of the incentive would be 25% of the overall project cost. This typically requires significant investment by the business in permanent improvements or infrastructure to the project site. In this way the Village can help facilitate development while cost sharing for permanent improvements to a property. Any project will have to provide certified project costs and evidence of sales tax payment to begin the repayment. Repayment does not begin until the Village verifies the cost.
Since 2009 the Village has approved 16 sales tax sharing agreements with large sales tax generators. These incentives helped attract and retain 8 car dealers, 3 grocery stores, and a hotel. The number of agreements does not match the number of businesses, because some of the agreements include ...
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