Rt. 83 & Main Property Information
Route 83 & Main Street - Village Owned Site Development
The Village has been working with Bluestone Single Tenant Properties (Bluestone) to provide master development services for a mixed-use commercial development for the Village’s 16 acre-site located at the intersection area of Route 83 and Main Street, commonly known as 83 & Main. On May 13, 2019, the Village entered into a formal agreement with Bluestone which outlined terms for the relationship along with defining baselines for the price to be paid for the land should the development come to fruition. The current proposal and plan call for a mix of uses consisting of a fuel station and convenience store, retail outlots, and light industrial. The project is progressing to a point where a formal sale of land is now appropriate. The Village Board will discuss the project in further detail at our regular Committee of the Whole meeting on Monday, December 16, 2019, at 6:30 p.m. [updated 11/1/2019]
History of Site Development
In an effort to control the development of our east gateway into Lemont and add to the Village tax base through the annexation of unincorporated properties along Route 83, from 2011-2015 the Village purchased several properties totaling approximately 16 acres located in the general vicinity of Route 83 and Main, currently located within the Main & Archer TIF District and adjacent to the Gateway TIF District. The Village issued approximately $4.8 Million in alternative revenue general obligation bonds along with loans from internal funds to purchase the property. With the land purchase and related costs, marketing of the site, along with interest paid on bonds to date, the Village has approximately $7.5 million dollars into the site.
The Village actively marketed this site beginning with a comprehensive Request for Qualification (RFQ) and Request for Proposal (RFP) process back in 2016-17. The Village engaged a development consultant, SB Friedman, to assist in the RFP/RFQ process along with the reconfiguration of the two-tax increment finance (TIF) districts encompassing and adjacent to the site. Following is a synopsis to date:
- February 2009 – Establishment of the Gateway TIF district.
- 2011 – 2015 – Land purchase, annexation, demolition of buildings, and site remediation
- June 2016 – Village held meetings and issued a RFQ to approximately 20 developers and/or brokers to generate interest in developing the site.
- August 2016 – Village evaluated three firms that responded to the RFQ and issued a more detailed RFP to two selected firms.
- Fall 2016 – Village interviewed and selected one of the firms to move forward in the process. While there was no formal engagement with the selected firm, the Village worked exclusively with them until the spring of 2017. At the July 2017 Committee of the Whole Meeting, the board met to discuss the project and decided to go in another direction rather than pursue the agreement with the selected firm. The agenda item packet for this meeting is included on this page for reference.
- January 2017 – Establishment of the Main & Archer TIF district.
- Fall 2017 - Spring 2019 – Village staff marketed directly to commercial developers and brokers, receiving proposals from potential partners. After several meetings and evaluation, Bluestone’s concept proved to have a vision for the site that best aligned with the Village’s goals for this gateway area and negotiation moved forward.
- May 2019 – Development Services Agreement with Bluestone approved by Village Board.
As negotiated between Bluestone and Village officials, Bluestone is offering $2.7 Million for the 16-acre site. The Bluestone proposal includes development that is expected to yield revenues exceeding $1 Million annually once fully operational. While far short of the existing investment in the site, through real estate, sales tax and other revenues, the Village has broader opportunities to recoup its costs and create new revenue over time.
In compliance with the TIF act, the Village has posted a formal request for proposals for the development of the 16-acre Main & Archer TIF Redevelopment Area. It’s expected that Bluestone will submit a proposal consistent with the negotiated memo of understanding. The Village Board will meet on Monday, November 18 to discuss the formal proposal at our Committee of the Whole Meeting, beginning at 7:00 pm. In addition, the Village will be processing a zoning change for the site to be consistent with the comprehensive plan and future development potential for the site. The hearing in front of the Planning & Zoning Commission is expected at the November 6th Planning & Zoning Commission meeting at 6:30 pm.
Documents and Additional Information on the Project
Questions and Responses
|Q1.||When will construction likely begin?|
|R.||The development services agreement with Bluestone outlines 3 phases of development; the Village is beginning to enter the entitlement acquisition phase, with a hearing at Planning & Zoning Commission scheduled for November 6, 2019. Any new development will require approvals from the Metropolitan Water Reclamation District (MWRD) and the Illinois Department of Transportation (IDOT), which can be difficult to predict. At best, construction could begin in Summer 2020.|
|Q2.||What type of revenues can the Village expect from this development? Can the revenues be utilized to pay down the debt that was taken to purchase the properties?|
|R.|| The Village will be receiving the payment for sale of its property, of which will be utilized to pay debt service payments and internal loans. The Village also expects to receive sales tax revenues, fuel tax revenues, plus gaming revenues.|
|Q3.||Will the Village have to issue anymore debt for this project?|
|R.||The Village is in the process of refinancing one of the debt issuance to take advantage of savings. There will be no additional debt issued for the project.|
|Q4.||Will the developer require a financial incentive?|
|R.||It is likely that the developer will require assistance to accommodate extra-ordinary costs associated with developing the property, contingent on the property developing and creating incremental revenues. If there is no development creating incremental tax dollars, there will be no incentive. Any incentive must be approved by the Village Board at a public meeting, of which discussion will occur in the future, if applicable. |
|Q5.||There appears to be other land in the vicinity for sale and/or vacant. Will there be additional development in adjacent areas?|
|R.||Very likely. These privately-owned parcels are for also for sale and development of adjacent land can reasonably be expected in in the short-term as well.|
|Q6.||Is this project related to the intersection improvements currently under construction at the corner of Route 83 and Main?|
|R.||While the development will benefit off of the roadway improvements once completed, they are not related. The signalization and roadway improvement is a project led exclusively by the Illinois Department of Transportation (IDOT). The Village has been in contact with IDOT periodically on the status of the project in order to update its residents, and will continue to relay updates. |