Oak Lawn IL Real Estate News

I read a lot about eminent domain in my real estate publications but have never really been affected by it in the past (although I did have a friend that lost his home for the I-355 extension).  Now there are some businesses in Oak Lawn that are very unhappy about the proposed new tax increment financing (TIF) district that would displace existing businesses at the northwest corner of 111th & Cicero Ave.  This would use taxpayer funds to attract developers and new stores.

I received a letter that was put together by owners of the businesses that will be affected by this TIF.  The businesses affected are Flap Jacks, Automotion, A&D Tile, Harley Davidson and Kmart.  The letter states that each of these businesses has invested a lot of money into their buildings in recent years.

The letter debunks some items mentioned by our mayor, David Heilmann.  The first “myth” states that the village can pass a TIF to create a new development that is more beautiful or generate more taxes.  In doing so, the village is trying to show the current area is blighted.  The writers feel that this will be difficult to prove and will cost taxpayer dollars in court proceedings trying to prove that this area is truly blighted.

The second myth is that the village can exercise eminent domain without having the TIF approved by a court.  The wrtiers state that this TIF will not be approved by an Illinois judge, thereby getting tied up in the courts for years, wasting taxpayer dollars.

The third myth states that the Mayor represented that key owners are willing to sell.  The truth seems to be that none of these businesses want to sell and all are against this TIF.

Another myth states that Flap Jack’s and Harley Davidson will not be threatened by this TIF.  They are being told they can remain on the property.  However, it has not been stated whether they will still own their land or become unwilling tenants on property they currently own.

Another argument is the amount of years left on Kmart’s lease.  The Mayor suggests that Kmart only has 5 years left.  However, the letter states that Kmart has more than 17 years left and has already been here since 1979 as a stable, long-term tenant.

It has been said that Kmart doesn’t pay real estate taxes, but the letter states that Kmart’s 2004 taxes were $566,817.63 which is distributed to the Village of Oak Lawn, its schools and other taxing bodies.  Kmart is up-to-date on real estate taxes.

The sales taxes in the proposed redevelopment are purportedly $375,000.  With the current businesses, the letter states Kmart alone already pays $335,042.55 in sales taxes.  This does not account for any of the other current businesses on the property.

The Mayor supposedly alleges the existence of environmental problems in the area but the Village’s own consultants, Kane, McKenna and Associates, did not allege any environmental contamination.  One of the statutory grounds for determining blight is the need for environmental clean-up.

A myth was stated that at the public hearing, most Oak Lawn residents spoke out against the TIF.  However, the letter states that of the more than 100 people present, the only support for the TIF was a letter written by a resident that works at the Mayor’s law firm.  Everyone else present spoke out against the TIF.

The final myth written in the letter was that the village is trying to convince residents that there won’t be any traffic problems with the proposed “Lifestyle” Center.  However, the Mayor suggests that a 500,000 sq. ft., 2-story shopping center might be needed to achieve the increases in sales taxes advocated.  This is about 1/4 of Woodfield Mall.  The letter writers feel that a development of this size will certainly impact neighboring homes and streets, especially causing extra traffic in the area.

On a personal note, I hate the idea of eminent domain, especially when it has been made clear that the current businesses do not want to move.  On the other hand, I love the redevelopment that has occurred on 95th St. and I appreciate updated business areas vs. older shopping malls.  This is definitely an older mall that I rarely visit.  If it were revamped I might, depending on what new businesses are attracted to it.

How do you feel about this?  Please post your comments.

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