Orland Park trustees back term sheet to pursue Dick’s Sporting Goods redevelopment at Orland Square

Orland Park trustees recommended that the village board approve a term sheet with Dick’s Sporting Goods to pursue redevelopment of the former Sears parcel at Orland Square Mall, the Committee of the Whole decided after a presentation and Q&A. The term sheet is nonbinding and outlines incentive payments and performance conditions; staff and Dick’s representatives said further negotiation is intended before a final redevelopment agreement is presented to the board by mid-September. The term sheet calls for an initial incentive of $6,000,000 to assist Dick’s with acquisition of the former Sears parcel and total TIF-eligible payments not to exceed $6,800,000. Ed Lillo, village staff, said the village intends to make the initial payment on or before Jan. 31, 2026, and that the incentives would be used partly to induce Dick’s to redevelop and partly for regional stormwater improvements at Orland Square Mall. “The approval before you tonight is the first step in creating a redevelopment agreement for the former Sears space at Orland Square Mall,” Lillo said. He said the term sheet is a framework only and that the parties intend to negotiate a final redevelopment agreement by Sept. 15, 2025. Donna Pew, counsel for Dick’s Sporting Goods, told trustees Dick’s and its consultants were present to answer questions about the proposal. Under the draft terms discussed, Dick’s would open a Dick’s House of Sport with at least 90,495 square feet of sales area and 28,566 square feet of non-sales area; the non-sales space could include climbing walls, batting cages, golf simulators, classes and other experiential amenities. Staff said construction is to commence by May 2027 with an opening in 2029. The village would create a TIF (tax increment financing) district to recoup the incentive payments; the TIF would also allocate about $3,000,000 for regional stormwater improvements tied to the redevelopment. Village staff said the redevelopment agreement would not include a minimum construction expenditure or a guaranteed minimum number of jobs. Dick’s would retain its right to appeal property tax assessments; however, if the facility’s equalized assessed value fell below $80 per square foot, Dick’s would pay the difference to the village via a payment in lieu of taxes. Grant Thornton representatives in the room described the incentive structure and financial modeling support. Trustees asked for clarification about how property tax flows through a TIF and whether the village would recover its investment. “Being that it’s in a TIF … the TIF gets all of the taxes when it’s in a TIF district,” a Dick’s/consultant representative said when answering a trustee’s question about the tax calculation. Staff added the business district/sales-tax option (a possible future 1% sales tax in a business district) could be used as an additional revenue tool if needed to recoup incentives. Trustees voted to recommend approval of the term sheet; staff and Dick’s will proceed to negotiate a redevelopment agreement with the goal of returning to the board with a final agreement in September. Background and next steps: the term sheet is nonbinding. If approved by the village board, staff said the parties will negotiate a redevelopment agreement that will specify final incentive timing, performance guarantees, construction milestones and TIF boundaries. The village also will complete required financial analyses and public notices before any final TIF adoption or incentive payments.