The Flossmoor Village Board voted unanimously June 1 to approve an inducement resolution as the first step toward creating a new Tax Increment Financing (TIF) district that could help support the proposed OBE Studios film production campus near Vollmer Road and 198th Street.
The resolution does not establish a TIF district or commit village funds. Instead, it allows certain development-related expenses incurred by OBE Studios to potentially qualify for reimbursement in the future if the village ultimately creates the TIF district and enters into a redevelopment agreement with the developer.
Village Attorney Kathleen Field Orr said village officials believe the proposed project area may qualify for a TIF district because of conditions affecting the site, including drainage and flooding issues that have complicated development efforts.
Orr said village officials began pursuing the TIF after discussions with developers interested in the area.
“We have been advised by those developers who have come forward with plans that everyone became very excited about,” Orr said. She said a TIF district could provide a mechanism to support redevelopment projects by allowing the village to use future tax revenue generated by new development to reimburse eligible project costs.
The proposed TIF study area includes vacant properties along Vollmer Road between Central Park Avenue and the Meijer gas station, as well as properties along 198th Street near the village’s public works facility.
Village officials said the effort was largely driven by the proposed OBE Studios development, which plans to build a multimedia entertainment campus on village-owned property west of the public works facility. The project was approved earlier this year through a development agreement with the village.
Trustee George Lofton said the proposed studio could have a significant economic impact beyond Flossmoor.
“This is a business that will promote businesses beyond our imagination,” Lofton said. “It will bring more income into not only our town, but the whole region.”
Trustee Gary Daggett said the village has a strong track record when it comes to using TIF districts and believes the tool can help bridge financing gaps that often prevent otherwise viable projects from moving forward.
“I see deals fall apart all the time because of the lack of filling that gap,” Daggett said. “Things that would be good for communities, good for business and good for local economic development just can’t happen because that gap is there.”
Board members also sought assurances about potential risks to taxpayers if the TIF district is never created. Orr said the village would have no obligation to reimburse costs unless the TIF district is established and a redevelopment agreement is approved.
“There will always be provisions protecting the village,” Orr said, explaining that developers must complete projects before receiving reimbursements and that agreements are structured to limit the village’s liability.
Village officials estimate the TIF creation process could take approximately four months if completed in-house, compared with roughly six months or longer when handled by outside consultants.
Mayor Michelle Nelson praised village staff for pursuing the project internally.
“We’re very lucky to have the team that we have,” Nelson said. “This saves our taxpayers tens of thousands of dollars.”
The board approved the inducement resolution by a 7-0 vote. Additional studies, public hearings and board approvals will be required before a TIF district can be formally established.
