FALL WINTER 2017
FALL WINTER 2017
FINANCE – SMART CHOICES
FINANCE – BUDGET
In early July, the Village of Orland Park Board of Trustees
voted unanimously to accept a take out offer from Flaherty
and Collins, developers of Ninety 7 Fifty on the Park,
the luxury apartment complex at 143rd Street and
LaGrange Road. This take out offer, in the amount of
$50.5 million, allows the village to recoup its investment
in the development.
The village will realize approximately a $6.8 million
gain over its total investment in this development,
including future tax increment generated.
In 2011, the Orland Park Board of Trustees authorized
the financing of Ninety 7 Fifty on the Park and created a
public-private partnership resulting in 295 luxury residential
lease units, 4,000 square feet of first floor commercial
space, 8,666 square feet of residential amenity space,
and 365 onsite parking spaces, situated on 3.4 acres of
Ninety 7 Fifty has exceeded occupancy expectations, with
a current occupancy rate of approximately 97 percent
Average residential lease rates have increased significantly
since opening with current lease rates ranging from
$1,440 to $2,440.
Pilewski and Associates, an outside financial consultant,
evaluated the take out and wrote, “…the take out offer
allows the village to pay off a line of credit/term loan and
provides additional cash flow to support village initiatives.
Ninety 7 Fifty on the Park has been a catalyst for additional
development, including a University of Chicago Medical
Center, a 520 space multi-level public parking facility
with 12,000 square feet of commercial space and a
proposed 80,000 square foot entertainment and mixed
This development was highlighted by the Urban Land
Institute as a case study of successful public-private
The financing structure defined in the redevelopment
agreement included a $38.2 million developer loan,
a $25 million village project incentive and $2 million
in equity provided by the developer, for a total project
cost not to exceed $65.2 million.
Ninety 7 Fifty was a catalyst for development throughout
Downtown Orland Park, credited with attracting the
University of Chicago, Mariano’s, the new theater
complex and other developments.
“From the beginning, Ninety 7 Fifty has exceeded
occupancy expectations, with an occupancy rate
at the time of the take out of approximately 97 percent.
Average residential lease rates have increased
significantly since opening with lease rates at the
time of the take out ranging from $1,440 to $2,440.
The village board has always recognized the responsibility it
has in serving the taxpayers of Orland Park. The success of
this development is a huge accomplishment for the village.”
Trustee Carole Griffin Ruzich
CHAIR OF THE VILLAGE’S FINANCE COMMITTEE
• Pre-budget committee
meetings with Budget Team,
and village officials
• Budget Team reviews
results with departments
• Budget Adoption
(December 4, 2017)
• Operating Budget Hearings
• Capital Budget Hearings
• Budget Team reviews budget priorities
This is the point at which
village-wide priorities of officials are
captured and included in the discussions
IN DECEMBER OF EACH YEAR, THE VILLAGE BOARD FORMALLY APPROVES BALANCED OPERATING
AND CAPITAL BUDGETS FOR THE FOLLOWING YEAR.
The village utilizes the target based budget method for operating funds; therefore, the budget process begins with the
calculation of available sources. Fixed costs are applied against these available sources and the net amount available is
allocated to the Village’s operating departments to fund variable operating costs. Available sources include fund balance
remaining after setting aside Board authorized reserve amounts, as well as revenue projected for the new fiscal year. The
village’s budget policy is to estimate revenues conservatively and to maintain a spending level less than or equal to current
year resources. The issuance of short or long term debt will only occur if needed to fund long-term capital projects and will
not be utilized to fund the village’s operating budget. The village continues to maintain reserves in its operating funds that
meet or exceed Board approved fund balance and reserve policy levels.
For more information about the Village of Orland Park budget process,