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FALL WINTER 2017

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WWW.ORLANDPARK.ORG WWW.ORLANDPARK.ORG

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FALL WINTER 2017

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25

2017

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DEC.

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

village-owned land.

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

use building.”

This development was highlighted by the Urban Land

Institute as a case study of successful public-private

financing initiatives.

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,

department directors

and village officials

• Budget Team reviews

results with departments

• Budget Adoption

(December 4, 2017)

• Operating Budget Hearings

• Capital Budget Hearings

Revenue Hearing

• Budget Team reviews budget priorities

with officials.

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,

please visit

www.orlandpark.org.

BUDGETPROCESS