Homewood trustees took two steps toward the rejuvenation of the village’s west side business district at the board meeting Tuesday, Aug. 13.
Homewood to an Ollie’s discount store began recently. (Eric Crump/H-F Chronicle)
The board approved one ordinance that removed two properties — Parkway West Plaza, commonly known as Great American Bagel Plaza, and the former Brunswick Zone/Big Lots site — from the Kedzie Gateway TIF District, then approved three ordinances that formally create a new tax incremenent financing district to promote the redevelopment of those two properties.
The board held a public hearing on the proposeed TIF district at its July 23 meeting. There were no comments or questions from the public or from trustees.
Phil McKenna of Ryan LLC, the consulting firm that performed the feasibility study for the new district, offered an overview. He said that without the financial incentives made available through the TIF district, he did not think the site would be redeveloped.
The area suffered a significant loss when Brunswick Zone bowling alley closed abruptly in January 2015. More recently, Big Lots relocated to Country Club Hills. Park West Plaza has been partially vacant for several years.
Work has begun on renovating the former Big Lots store to make way for an Ollie’s discount store. The redevelopment plan calls for a retail wine and spirits store and another use to be determined.
Rabid Brewing, currently located on Bretz Drive in Homewood, has entered into a letter of intent to move to Park West Plaza.
TIF districts generate revenue by freezing the assessed value of property in the district when the district is established. Then as property assessments rise, the difference between the base rate and the new rate is put in a fund that can be used to support eligible improvements that promote new economic activity.
The duration of the district will be 23 years.
McKenna said most of the money collected in the TIF fund will be used for land acquisition, site preparation and utilities.
Setting up the TIF was delayed by several months while the village waited for the county to certify the updated assessed value of the property following village acquisition of both sites. Because the village does not pay tax on properties it owns, the baseline assessed value for the sites is virtually zero, which will help the district generate more money for redevelopment costs.
In other business, the board approved a redevelopment agreement with Steve Phillipos, owner of Homewood Ford Inc. at 3233 183rd St., which is in the Kedzie Gateway TIF district.
Phillipos is expanding the dealership and parking lot area, remodeling the facility, and making site improvements including stormwater drainage enhancements.
The village will reimburse Phillipos 50% of TIF-eligible expenses up to a maximum of $2,451,422 over the remaining 20 years of the district’s existence.