Trustee vote: The Village of Hoffman Estates approved an amended redevelopment agreement that allows residential development inside the Lakewood Center tax-increment financing (TIF) district and extends for five additional years a 95% developer / 5% village increment split before returning to a 50/50 split.

Why it matters: The change lets the developer include at least one full apartment building within the TIF boundary (moved from a prior plan) and shifts more of the near-term TIF increment to the developer to support financing and construction amid higher post‑2018 costs. In exchange, the developer agrees to several Westside improvements — including a 10-foot shared-use path along Lakewood Boulevard and related pedestrian and bicycle connections — that staff said would otherwise have required village investment.

What trustees heard: Kevin (economic development staff) told the committee the two main changes are (1) removing the prior prohibition on residential so at least one apartment building can be built in the TIF and (2) granting the developer five extra years of the 95/5 split to help secure financing and absorb higher construction costs. He said original projections were developed in 2018, prior to COVID and the subsequent rise in construction costs. "A lot of these initial projections were done in 2018, pre COVID," Kevin said.

Trustee concerns: Trustee Mills said she was "a little concerned about this 95% going on for so many years. It's just a large percentage," and asked for additional justification. Staff and counsel explained that certain costs and school-district student counts are deducted before the 95/5 split applies and that the developer is still taking substantial project risk. Kramer (village counsel) noted the 95/5 split occurs after other expenses are taken out for the village.

Project scale and boundaries: Staff said the developer proposes roughly 330 apartments total in the project, with one of the buildings wholly inside the TIF. Kevin said the developer originally planned residential outside the TIF but relocated one building to the north side of the parking deck after site constraints. That relocation is the change that triggers revisiting the RDA and TIF split.

Vote and conditions: The RDA amendment passed; the record shows the motion carried with one recorded "no" vote. The amendment includes exhibit requirements and a new map enumerating Westside improvements the developer must construct (for example, the 10-foot shared-use path along Lakewood Boulevard and other connectivity projects). Village staff said many of the connectivity projects that would have been funded by village increment will now be performed by the developer as part of the revised agreement.

Westside site plan approval: Separately, the committee approved a site plan amendment for Bell Works Westside (2000 Center Drive) that authorizes removal of the covered pedestrian bridge, reconfiguration of the west drop-off area, ADA lighting and landscaping changes, garage modifications and internal pedestrian/bike connections. Staff reported demolition has begun on the pedestrian bridge and interior spaces; the ordinance includes timeframes for completing pedestrian and bike improvements.

Next steps: Project-specific building plans and any subsequent applications for additional buildings or TIF-boundary changes will return to the planning process for separate review.