NDOMI Capital, a food and beverage distribution business coming to Industrial Drive,,,,,,, has been approved for a reduced rate on property taxes for 13 years in exchange for its substantial investment in the property, and the village allowed itself to get reimbursed for developing the forthcoming TIF district at Franklin St. and Brown Ave.
As the village council unanimously OK’d these two actions at the April 27 meeting, some commissioners voiced concern about reducing the village’s revenue from property taxes in the short-term.
“The challenge for Forest Park specifically, and right now in particular, is that both these mechanisms, TIFs and the 6b classification, work by reducing property tax revenue in the short-term in exchange for hoped for — and not always certain, but kind of certain, we’re not sure — long-term benefits,” Commissioner Maria Maxham said. She added that, for a village that needs to funnel at least $74 million into its police and fire pensions in the next 14 years, and has an overall projected $15 million deficit, she was unsure if this was a worthwhile tradeoff.
“When we start trading off the money that we could be getting right now in property taxes to put towards the pensions for a future amount that we think and hope we’re going to get, it becomes a little bit scary,” Maxham said.
Maxham requested an internal analysis on the long-term effect of changes in property tax classification and TIF reimbursements. She said she asked staff earlier in the evening for information about the village’s current 6b properties with reduced property tax rates and whether they’re succeeding and was told that would be a large report to put together.
“It really bothered me that we don’t have that, that we should have, that we should be doing better. We should know exactly what it is that we’re signing up to do when we sign up to do something,” Maxham said. “These are, generally speaking, really good things. I’m just asking, and I want on the record that going forward, I want there to be better analysis and a better picture painted of why these things are necessary.”
Rachell Entler said in her two-and-a-half years as village administrator, she’s seen four applications for 6b classification, including NDOMI’s. And said there may have been one application before her time.
“This is something that is somewhat relatively new to the council. You certainly have seen the most in our recollection,” Entler said. “I will, going forward, make sure that you have more of the details that we put in place in order to analyze this when you get the requests.”
Commissioner Jessica Voogd agreed that she would’ve liked more time and additional information, specifically about the 6b real estate classification.
“I am a little frustrated as well with the state of our finances. We kind of get backed into this fear-based decision-making situation where we need the money so bad, so let’s take 10% tax revenue, instead of 25%, for 10 years,” Voogd said.
NDOMI Capital, the food and beverage distribution business, was approved at the council meeting for the 6b incentive that will assess the property at 10% of its market value for the first decade, 15% the 11th year, 20% the 12th year, and the standard industrial rate of 25% in the 13th year.
Entler apologized at the April 27 meeting for not initially including NDOMI’s application for 6b classification when she made the agenda packet. She added that, when the village gets a 6b application, it’s reviewed by staff, with the village’s legal team, the applicants and their legal team, and TIF consultants if needed.
“We try to determine whether, if the property sat vacant under the normal property tax allowance, would the incentive that we provided to the applicant, even at the reduced tax rate, result in increased taxes for the village of Forest Park compared to if it sat vacant?” Entler said, “and what improvements they’re going to be making to the facility, what jobs they would be bringing to the community, and what those jobs would bring to the area.”
NDOMI Capital
NDOMI Capital is currently closing on the property at 7526 Industrial Dr., which has been vacant since January and in poor condition since last summer. If Cook County approves the 6b classification for the lower property tax assessment rates, NDOMI Capital plans to spend about $1 million to rehabilitate the property.
“The 6b approval is heavily weighing on that initiative. That’s what would make it viable for us,” said Patrick Walsh, one of the business partners opening NDOMI in Forest Park, at the April 27 council meeting.
NDOMI Capital has committed to $550,000 in improvements by Sept. 2027 and creating up to 15 new, full-time jobs. Walsh said the company will likely spend closer to $850,000-to-$1.2 million to renovate the dilapidated building.
Currently located in Wooddale, NDOMI Capital does up to 200 deliveries a day out of its facility, 80% of which are to Chicago locations. Walsh said there’s opportunity to sell to more Forest Park businesses, funneling money right back into the village.
“The closer we come to Forest Park, the impact of our business can be felt directly in that we’ll be selling our products on a wholesale basis, like our friend Jimmy Watts,” who owns O’Sullivan’s Public House on Madison Street, Walsh said. “We’re not looking to become a big company,” he added. “There’s no expansion plans beyond where we are right now, other than being able to service more customers.”
Walsh grew up in Oak Park and runs the company with his son, Sean Walsh, and DJ Romano, who grew up in River Forest.
“We’re thrilled to make Forest Park our long-term home. This area means a lot to all three of us,” Patrick Walsh said. “We’re a small, family-owned business that we plan on Sean running for a long time after we’re no longer running it.”
Commissioner Ryan Nero thanked the co-owners for attending the meeting, when many applicants don’t. And said the 6b classification and TIF reimbursement the council approved will benefit the village.
“Those are opportunities for us to attract new businesses into Forest Park, to make Forest Park easy to do business with,” Nero said. “The property as it sits right now, and what you are trying to accomplish with it moving forward, is going to, from a business standpoint, put this property on the map, and by making those investments in the property, brings more property tax revenue to Forest Park.”
Franklin Street/Brown Avenue TIF
At the April 27 council meeting, the village approved a resolution that allows it to pay for redevelopment costs in the soon-to-be-active TIF district on Franklin Street and Brown Avenue from its general fund now and, once the new TIF district has some money funneled into it, the village can reimburse itself up to $5 million from that fund or bond proceeds. The $5 million is a placeholder in line with IRS Treasury regulations.
“You could make it $1 million tonight, if you want,” said Village Attorney Nick Peppers to the council. “You’re not spending $5 million on a project. There’s no development in the winds. It really is a belt-and-suspenders approach to the formation of the TIF.”
If, after the village forms the TIF, they want to float a bond the same day or buy land, they have the ability to spend that $5 million, though they must be authorized before doing so.
“Floating bonds up front are frowned upon nowadays. Hardly anyone ever does that. We usually go pay as you go, meaning when the TIF increment is generated, then you might reimburse a developer,” Peppers said. “You’re not committing to spending $5 million tonight, you’re just reserving that ability.”
Following multiple questions from Maxham, Peppers assured the council that passing the resolution wouldn’t exacerbate the village’s current deficit of cash.
“The TIF act is complicated,” said Peppers, adding that it’s his third time helping Forest Park create a TIF district. “This is the process. Not knowing what your development is going to be, you are going to have every opportunity in the world to evaluate what this TIF may or may not be able to bring to the village. Believe me, you’re not obligating yourself to do anything tonight that would put this village in any financial jeopardy.”