S-1306 - 03/22/2011 - AGREEMENT - Ordinances Supporting DocumentsIT13H 10.1).
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AGENDA ITEM
Regular Board of Trustees Meeting
of
March 22, 2011
SUBJECT: Irgens Development Agreement
FROM: David Niemeyer, Village Manager
BUDGET SOURCE/BUDGET IMPACT: $125,000 /Infrastructure Fund
RECOMMENDED MOTION: Motion to approve Ordinance 2011 -AG -S -1306 An Ordinance
approving a Development Agreement between York Road Development Partners, LLC and the
Village of Oak Brook.
Background/History:
Attached is the development agreement with Irgens Development for construction of a three story,
74,000 square foot office building at York Road and Wood Glen Lane. The terms of the agreement
and the proposed development has been discussed at previous meetings. The actual development
plan was approved on December 8, 2009.
Other developers have attempted to develop this site in the past but were unable to do so due to
multiple site challenges. Irgens is requesting assistance from the Village due to the extraordinary
costs to develop the site and their expenditure on improvements will benefit the Village as a whole.
There are significant extraordinary costs to develop this site including installing a sewer line
underneath the 1- 88/294 connector ramps that will cost approximately $155,000.
In addition, this development will provide Oak Brook with a new, Class A office building; creates
186 permanent jobs; incorporates some of the proposed roadway improvements from the York Road
improvement plan approved by the Village last year; and the project is supported by the
neighborhood subdivisions across the street.
Highlights of the agreement include:
• Developer will make intersection improvements to the poorly designed intersection of York
Road, Wood Glen Lane and the frontage road as described in Exhibit B.
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• As part of the reconstruction of this intersection, the Village has acquired easement rights
from the Illinois Tollway. The developer is required to pay the Village $15,000 for the cost
incurred by the Village in acquiring these easement rights.
• The Village is paying the developer $125,000 for expenses occurred to install the required
off -site development improvements.
• The Village will approve an ordinance creating a special service area at the next meeting
assuming the Village has received certain waiver and consent forms from the developer.
• The Village will issue tax exempt bonds in the amount of approximately $800,000 to finance
the developer's costs and expenses related to the project. The bonds will be paid back by a
tax levy not to exceed $125,000 per year for a maximum of 10 years on the property. As has
been explained before, the Village is simply acting as a conduit for these bonds and there is
no risk to the Village if the developer doesn't pay the bonds back.
• The Village will cap permit fees on the project at $75,000.
• The developer will reimburse the Village's legal fees incurred in connection with this
agreement at an amount not to exceed $12,500.
Recommendation:
That the Village Board approves Ordinance 2011 -AG -S -1306 An Ordinance approving a
Development Agreement between York Road Development Partners, LLC and the Village of
Oak Brook.
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ORDINANCE 2011 -AG -S -1306
AN ORDINANCE APPROVING A DEVELOPMENT AGREEMENT
BETWEEN YORK ROAD DEVELOPMENT PARTNERS, LLC
AND THE VILLAGE OF OAK BROOK
WHEREAS, York Road Development Partners, LLC ( "Developer ") owns approximately 2.37 acres of
land ( "Land ") near the intersection of Woodglen Lane and York Road; and
WHEREAS, the Developer proposes to develop the Land with a 60,000 square foot, three -story
office building; and
WHEREAS, the development of the Land as proposed would not be feasible without the assistance of
the Village; and
WHEREAS, the President and Board of Trustees have determined that the development of the Land
will promote the continued economic vitality of the Village.
NOW, THEREFORE, BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF OAK BROOK, DU PAGE AND COOK COUNTIES, ILLINOIS as follows:
Section 1: The foregoing preambles are restated and incorporated herein by reference as though fully
set forth herein.
Section 2: The development agreement ( "Development Agreement ") between the Developer and
the Village which is attached hereto as Exhibit A and incorporated herein by reference is approved subject
to such amendments as may be determined by the Village Manager.
Section 3: The Village President and Village Clerk are authorized to execute the Development
Agreement on behalf of the Village.
Section 5: If any section, paragraph, clause or provision of this ordinance shall be held invalid, the
invalidity thereof shall not affect any of the other provisions of this ordinance.
Section 6: All ordinances in conflict herewith are hereby repealed to the extent of such conflict.
Section 7: This ordinance shall be in full force and effect from and after its passage, approval and
publication as provided by law.
APPROVED THIS 22nd day of March, 2011.
John W. Craig
Village President
PASSED THIS 22nd day of March, 2011.
Ordinance 2011 -AG -S -1306
Development Agmt. York Rd.
Page 2 of 2
ATTEST:
Charlotte K. Pruss
Village Clerk