Morton Grove board approves redevelopment agreement, up to $780,000 in TIF assistance for Andy's Frozen Custard

The Village of Morton Grove approved a redevelopment agreement with Andy's Frozen Custard and authorized the use of Sawmill Station tax-increment financing to provide up to about $780,000 in net assistance for a project estimated at $4,500,000.

Zoe Heidorn, presenting the proposal, said the 1.11-acre property at 6724 Dempster Street has been vacant for years and that Andy's proposes a 2,000-square-foot drive-through restaurant on the commercial portion, with two northern single-family lots to be sold to a local builder. Heidorn told the board the village recommends $780,000 in net assistance, representing roughly 17.3% of the project cost, with $880,000 provided at closing as a note mortgage secured by the village and conditional reimbursement of TIF-eligible site improvements up to $400,000 after sale of the single-family lots.

Robert Dela Fuente, Andy's real estate director, addressed timing and capacity: "We're thrilled to have this project in front of you" and said Andy's opens about three stores a year, with entitlements planned in 2027 and construction in 2028. The presentation included projected tax impacts: the vacant property currently generates roughly $21,000 per year; the completed project is estimated to generate about $110,000 per year in property tax ($70,000 from Andy's, $40,000 from the residences) and about $50,000 in local sales tax in year one. Staff estimated the TIF assistance would be repaid in roughly five to six years based on those projections.

Trustee White moved to accept Resolution 26-45 and the board approved it by roll call, 5–0.