Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Oswego approves RDA amendment, offers $100,000 sales-tax incentive for Route 71 site
Summary
The board approved a first amendment to a redevelopment agreement and a ten-year economic incentive for HD 71 LLC to help cover underground stormwater and IDOT-related costs that threatened a Route 71 development; staff said the incentive helps capture roughly $55,000 per year that the village would otherwise forfeit.
Oswego, Ill. — The Village of Oswego Board of Trustees voted April 8 to approve a first amendment to a redevelopment agreement and to authorize an economic incentive agreement with HD 71 LLC for a small commercial development east of Illinois Route 71 at Washington Street.
What the board approved: The amendment extends permit deadlines to allow the developer additional time to secure IDOT permissions needed for utility work under Route 71 and authorizes an economic incentive capped at $100,000 over 10 years, structured as a rebate of state-shared sales taxes consistent with prior restaurant incentives.
Staff context and rationale: Development staff told trustees the project was at risk after detailed plan review revealed significant added costs — notably upsized underground stormwater detention (roughly $80,000) and IDOT right-of-way work (roughly $20,000) required to run sanitary across Route 71. Staff said those site-specific infrastructure costs threatened the pro forma for the project and that the developer indicated the incentive was essential to proceed. The memo estimated the village would forfeit roughly $55,000 per year in incremental revenue if the site remained undeveloped and projected approximately $1 million in revenue over the life of the TIF district if developed.
Board debate: Trustees discussed trade-offs. Some members worried the incentive could set precedent or preclude a larger mixed-use project in the future, noting the corner’s potential for a higher-yield development. Others said experience shows previous proposals failed on the same site and that getting infrastructure installed and a building on the ground may spur further development.
Vote and next steps: The board approved the redevelopment amendment and the economic incentive agreement. Staff will execute the incentive agreement and proceed with permit and construction coordination; the incentive is structured to recapture revenue through incremental state-shared sales taxes over a multi-year term.
Quote: “Who knows? One thing I might add… land acquisition can also be quite complicated,” a staff member said in describing why smaller proposals had previously faltered. Trustees said they hoped infrastructure improvements would attract additional investment to the corridor.
Outcome: Motion carried; staff will finalize the incentive agreement and monitor construction and tax receipts under the RDA.
