November 25, 2013

Mr. Anan Abu-Taleb, President

Trustees oI the Village oI Oak Park
Village Hall
123 Madison St.
Oak Park, IL 60302
Dear Mr. Abu-Taleb and Trustees,
Economic development, done eIIectively, expands a municipality`s tax base. This, in turn, allows Ior a
reduction oI the tax burden on commercial property owners and individuals, expansion oI revenues to
Iund local services and an enhanced quality oI liIe. In recent years, economic development in Oak Park
has not been as successIul as could be expected Ior a Village with so many desirable attributes.
Evidence oI this is:
Three vacant development sites in downtown Oak Park
SigniIicant vacancies along Madison Street, including the long-empty site at Oak Park Avenue
A sizable number oI undeveloped or underdeveloped properties along North Avenue,
Roosevelt Road, Harrison Street and Austin Boulevard.
The opportunity cost oI vacant or underutilized property is great. Collectively, these sites represent
millions oI dollars in potential tax revenues to the Village and other local taxing bodies. As an example,
Berwyn`s success in attracting the national discount store, Meijer, to a site on Cermak Road will be
worth at least $250,000 in new tax revenue, net oI incentives, to Berwyn in the Iirst year oI operation.
The development oI this previously vacant space adds assessed value which, in turn, produces real
estate and sales taxes in perpetuity as long as a viable business inhabits it. We should not be ignoring
Iunds oI this magnitude.
Why have economic development eIIorts stalled in Oak Park? For all the Village`s attractive
characteristics, it has some challenges. Its location between downtown Chicago and the major retail
concentration in Oak Brook rules it out as a site Ior many retailers with existing stores in these locations.
Also, property taxes are high in the Village relative to other locations within Cook County and
particularly relative to locations in DuPage County. Oak Park has developed a reputation Ior being
diIIicult to work with; that reduces the pool oI developers assessing opportunities in our Village. These
challenges can be overcome. But doing so requires dedication, Iocus and creativity.
Attached is an outline Ior a new economic development authority Ior Oak Park. It is a proposal to take
responsibility Ior the Village`s development, recruitment and retention, incentives and innovation and put
it into a separate corporation governed jointly by the Village and qualiIied members oI the private
sector. This authority will be Iunded by the Village, accountable to it, and particularly Iocused on Iinding
and soliciting proposals to develop our community`s undeveloped and underdeveloped resources.
Proposals Ior developments and incentives, where needed, will be presented to the Village Board Ior its
approval.
In addition, the new DCOP will develop a marketing program to deIine the 'Oak Park Advantage so
that the Village is properly presented and sold. It will use the Village`s Comprehensive Plan and other
business districts` economic plans as its roadmaps Ior development. It will be entrepreneurial, Iarsighted
and action oriented. But it will also demand that the Village Hall`s Building Services department be
streamlined and held accountable Ior its part in this plan. Responsible Ior all development activity, the
new DCOP, most importantly, will be the vehicle to position Oak Park as a most desirable place in
which to do business, to live and to work.
I ask you to study this proposal careIully. It was created with a great deal oI thought and commitment
by the members oI the business community and the Village Board members and it reIlects input Irom the
Village Manager. Its ambitious plans can only be accomplished with the trust and conIidence oI Village
government. This model has worked elsewhere. In order to begin, it needs your votes. I encourage you
to review and critique the proposal and to support it. I will be happy to answer any questions this
proposal prompts.
Sincerely,
Martin J. Noll
Chairman
Enc.
cc: C. Pavlicek
A ProposaI for
The New DeveIopment Corporation for Oak Park
Mission: The New Development Corporation for Oak Park ("DCOP) will be the primary
catalyst for economic growth in Oak Park. Economic growth increases the assessed value of
commercial property, adds to the tax base and enhances the quality of life in the Village.
Objectives: n order to provide more tax revenue to Village government, its schools, libraries,
parks and township, DCOP will seek to increase the assessed value of commercial property
in Oak Park. t will also endeavor to expand retail sales tax revenues and stimulate growth in
private employment within the Village.
Critical for the success of this proposal for services is shared trust, cooperation and open
communication between the Village and DCOP. To accomplish this, DCOP will advise the
Village Board of its significant undertakings and, through its Board, keep the Village Board
aware of all activities of DCOP.
The Mission will be accomplished via a new DCOP, operating under new by-laws and a new
Board of Directors that includes DCOP's President, the Village President and its Manager, one
Village Trustee, and three to five business and development experts. Term limits may be used.
As the Village's economic development authority, DCOP will engage in Development,
Recruitment, Marketing and Retention. DCOP will support nnovation. t will use ncentives
judiciously to stimulate economic development. And it will act with Responsibility in all it does.
. Development: DCOP will increase the commercial property tax base by stimulating
development in the community. To that end, DCOP will:
dentify and market Village- and privately-owned sites in connection with the Village's
Comprehensive Plan and economic plans for local business districts
Recommend developments to the Village Board. Where subsidies or incentives are
needed, DCOP will provide detailed analysis and rationale
Bring financing to projects where requested
Guide developments through planning, zoning and permitting to completion
Benchmark developments against their tax-base contribution
. Recruitment: DCOP will find space for businesses seeking to locate in Oak Park, using
its enhanced database of available commercial properties
DCOP's recruitment efforts will be guided by development plans for the Village's
various business districts
DCOP will assist prospective tenants through planning, zoning and permitting to
occupancy
DCOP will offer assistance and, when needed, will request financing assistance from
the Village Board, supported by financial rationale
DCOP will benchmark projects against planned contributions to the tax base
. Marketing: DCOP will develop a marketing campaign for business recruitment
DCOP will create a brand for business in the Village
This campaign will showcase Oak Park's advantages as a business location,
including its attractive and diverse housing stock, regional transportation links and
array of cultural attractions
V. Retention: DCOP will work with existing businesses to help stimulate their growth and
ensure that their needs are met by:
Calling on existing business, identifying needs and responding to them
Collaborating with the Chamber, DTOP and other business associations
Offering financial assistance and, when needed, will request assistance from the
Village Board, supported by financial rationale
DCOP will benchmark and report its activities
V. nnovation: DCOP will support entrepreneurship within the Village by:
Encouraging development of an incubator and/or shared office concept
Providing educational seminars and counseling for business owners
Arranging for access to debt and equity capital for entrepreneurs
Offering financial assistance and, when needed, will request assistance from the
Village Board, supported by financial rationale
V. ncentives: DCOP and the Village to develop an array of incentives to be offered
to stimulate economic development. DCOP will evaluate each request for Village
assistance to determine whether incentives are needed for a project or investment to
proceed. Equally important, DCOP will coordinate the financial services offered by its
member banks. ncentives may include:
Direct loans by DCOP banks or the Village (from general fund or, perhaps, from
bonded debt)
Loan guarantees by the Village
Grants by the Village
Sales tax abatement or sharing
Contribution of or write-down in the cost of Village-owned land
Federal, state or county incentives
Application, zoning and/or fee relief
When Village Board approval for economic development incentives is needed, DCOP will
provide economic, financial and statistical analysis as well as project benchmarks.
V. Responsibility: DCOP will create tools by which to measure its effectiveness. t will also
track the returns to the Village from investments. Management will:
Measure the long-term real estate tax stream any development provides, whether or
not the development involves Village subsidy, grants or contribution of real estate
Report its effectiveness in meeting benchmarks to the Village Board on a regular
basis
Convey its results to Village residents via annual reports
V. Composition of Company: DCOP's Board will employ sufficient staff to implement these
efforts. The staff would likely be comprised of:
A new Chief Executive to oversee all operations of the company, maintain the flow
of information with the Village Board, the community and within DCOP, serve as the
Village's chief recruiter and marketing officer, and implement annual measures of
effectiveness
A Real Estate Development Officer experienced in development, valuation,
economic analysis and financial incentives, responsible for access to decision-
makers in the development industry. This person will be the face of DCOP vis-a-vis
the development community
A Retention/Recruitment Officer to work with existing businesses, prospective
tenants and brokers to maintain the character of the smaller retail businesses in the
Village. This person will be responsible for small grants programs
An Economic Development Officer to develop proposals, calculate returns of
investments, conduct research, maintain databases and craft RFPs
An office administrator
Also, DCOP will form collaborative relationships with:
Business associations of the business districts in the Village
The Chamber of Commerce
SCORE and other business counseling organizations
Other Partner Agencies
Operating budget: DCOP will require a year-one budget of $725,000 in 2014. Personnel costs,
inclusive of benefits are expected to be $525,000; and an additional $200,000 will be needed for
office, marketing and administrative costs.
DCOP and the Village will explore funding from other public stakeholders, partner agencies or
significant employers in the community.
Funding Commitment: The Village Board should commit to funding for an initial period of five
years (subject to annual appropriation). That period is sufficient to allow for the creation of an
economic development authority with the resources to expand the tax base of the Village.