Orland Park joint review board backs early dissolution of Main Street Triangle TIF, moves proceeds to downtown TIF to cover debt

The Orland Park Joint Review Board on Dec. 16 recommended that the Village of Orland Park dissolve the Main Street Triangle tax-increment financing district early and transfer remaining proceeds to the Downtown Orland Park TIF to help pay outstanding debt.

The board voted unanimously to recommend the early termination, with the motion made by the representative for School District 135 and seconded by Cook County. The recommendation is contingent on approval of a new intergovernmental agreement (IGA) between the village and Consolidated High School District 230 and School District 135, and the village is scheduled to consider the termination at its Oct. 20 village board meeting, officials said.

The recommendation follows a presentation of the village's financial reports by Chris Frankenfield, Village of Orland Park finance director, who told the board auditors completed the 2023 and 2024 financial audits and identified two expense misallocations that will be corrected in 2025. "We have S B Friedman of just over $89,000 and then SpaceCo just over $25,000," Frankenfield said, saying those costs were misallocated to the TIF and will be moved into the village capital accounts to replenish the TIF fund.

Why it matters: dissolving the Main Street Triangle TIF early will free up newly assessed property value for other taxing bodies. Officials said the parcel in question was recorded at about $56,000,000 in assessed value, and the board expects new non-tax-cap assessment growth that taxing districts may capture beginning with 2026 levies. Village staff estimated combined additional capacity on the order of the low millions for the main school districts as a result of the change.

Developments and finances: board members and staff reported limited TIF activity for 2024 and minimal activity in 2025, with one construction project underway in the Downtown Orland Park TIF: Parcel H at the southwest corner of 140th Street and LaGrange is under construction for a one-story Weber Grill with outdoor dining. Development petitions were reported for Parcels A and B north of 140th between the train tracks and LaGrange Road for two two-story mixed-use buildings and a pedestrian mall, and a one-story restaurant on the northwest corner of 140th and LaGrange.

On the disposition of funds, staff said proceeds remaining in the Main Street Triangle TIF will be transferred to the Downtown Orland Park TIF and used to pay down debt tied to the Main Street Triangle district. "Whatever money is remaining is gonna get transferred to help pay for that debt," a village official said. Staff also noted a delay in Cook County disbursements; about $700,000 had been received for tax increment in 2025 at the time of the meeting, and the final transfer amount will be determined after the TIF is closed and audited.

Actions and next steps: the board formalized three items on the record at the meeting: approval of the prior meeting minutes, acceptance of the 2024 financial reports (including the separate downtown TIF reporting), and the recommendation to the village board to dissolve the Main Street Triangle TIF early, contingent on IGA approvals by the main districts. The village must file the TIF closure with Cook County by Nov. 1, officials said. The village board will consider the termination and related IGA on its Oct. 20 agenda.

Public comment and governance context: Consolidated High School District 230 superintendent Kyle Nolte addressed the board during public comment, saying, "If I speak on behalf of our board, I think it's something that our board has been looking forward to, and we're optimistic as well." Board members described the move as a way to "reset" relationships among the village, the two major school districts, and other taxing bodies.

The joint review board's recommendation does not itself dissolve the TIF; it is a forwarding action to the Village of Orland Park for final decisions and to complete the required county filings. The village and affected taxing bodies will finalize the IGA language and audit figures before final transfers are made.