TINLEY PARK, IL-Developers have cleared one hurdle, the village Planning Commission, and are on their way to the Board of Trustees to push through the $34.8 million South Street project. The proposed five-story building will have 167 apartments and 26,000 square feet of retail, and will be renamed the Boulevard at Central Station.
The board will hear a first reading about the project at its meeting June 19, and are expected to vote on the proposal at a second meeting July 17. Village Manager Scott Niehaus tells GlobeSt.com that the developers, Bob Hansen and car dealer Joe Rizza, could start work in the fall and finish the project by early 2014.
The empty site on South Street between 67th Avenue and 67th Court, which includes a parking lot across from the Oak Park Avenue Metra Station, has seen a number of different development proposals from Hansen in the past 10 years. The units are expected to rent for $1,600 per month, but the desire is to convert the building eventually to condos, according to the village. The developers are financing the project through Berkadia Commercial Mortgage LLC, and plan to use FHA.
Berkadia hired Dost Valuation Group Ltd. to examine the multifamily demand. Eric Dost said in a May letter to Berkadia that there’s a need for 333 units within the project area by 2015, with minimal nearby competition and high occupancy. Retail is also tight, with a vacancy rate of about 5% in the downtown, Dost said.
Mayor Ed Zabrocki tells GlobeSt.com that it’s been a tough go getting projects going in this western Chicago suburb. The $100 million proposed North Street development, which would have brought condos to the downtown, also fizzled out with the economic downturn. “We need to bring people downtown to make it a vibrant place to be,” Zabrocki says. “This should help with revitalization, and it’s an ideal location right across from the Metra tracks.”
The village will likely approve the project, which includes some minor zoning changes. Also, the village is considering a tax break incentive worth about $6 million for the project, and the county may also provide incentives.
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