Facing the prospect of a court order that would remove them from the equation entirely, officials in the village of Homewood have signed off on a settlement that will allow the owners of a struggling south suburban country club to move forward with plans to redevelop the property, providing what developers say will be a significant economic boost to the village and the region.
For more than 18 months, the village of Homewood and developers and land owners have squared off in Cook County Circuit Court over the village’s refusal to allow investors to use $93 million to transform the Calumet Country Club into an industrial park, centered on distribution and “fulfillment” centers.
The case landed in Cook County Circuit Court in July 2019, when a group of investors, under the corporate name CCC Investors LLC, filed a petition seeking a court order allowing them to disconnect the country club property from Homewood.
The country club owners didn’t specify their plans that would have followed disconnection. However, Homewood village officials indicated they believed the owners would have sought to then annex their property to the village of Hazel Crest, which surrounds the country club property on three sides.
The court filing, in turn, followed more than a year of talks between the owners of the country club and the village over the fate of the economically struggling country club, which includes the 130-acre golf property.
The developers and property owners asserted the best use for the country club was to be redeveloped. To that end, the property owners negotiated a deal to sell to a development group, identified as Diversified Partners.
The village said it did not disagree with the club owners’ conclusion regarding the viability of the golf course business model. They agreed the use of the land as a golf course was no longer viable, given it is one of eight such courses within a five-mile radius.
However, Homewood officials rejected the idea of such industrial use on the site. Rather, they pushed for retail or more profitable kinds of recreational uses.
The developers, however, said they worked for months to no avail to find other businesses to locate to the site. Given the site’s location, a logistics hub is the only kind of development that would economically work on the site, developers said.
A trial in that case was scheduled to begin March 5.
With that date fast approaching, the two sides struck a deal. The Homewood village board reluctantly approved the deal in late January, stressing they believed they had “no choice.”
Homewood Village Attorney Christopher Cummings noted in official minutes of the meeting that the village risked losing complete control of the project, as the developers and property owners were poised to win in court, and annex to Hazel Crest.
The economic benefit to Homewood and the region could be substantial, according to projections included in an analysis filed in court. In that report, tax and valuation attorney Thomas E. Sweeney estimated the redevelopment project would generate more than $2.8 million a year in new property tax revenue for local governments, with more than 70% of that money going to local schools.
Sweeney further said the surge in tax revenue could decrease property tax bills for homeowners in the area by more than $361, compared to 2018 tax bills.
In 2020, Homewood residents paid a composite tax rate – representing taxes paid to school districts, the village and other local public bodies – of more than 16%. From 2010-2020, tax bills in the suburban community had increased by more than 60%, according to data posted by the Cook County Clerk.
However, property values from 2016-2020 had increased by only 10%, that data showed.
According to the village board’s meeting minutes, village trustees agreed they wished for the property and the development to be located in Homewood, rather than Hazel Crest, to allow the village to both assert some measure of control over the development’s impact on residents, and to reap the economic benefits.
Under the settlement, the village agreed to create a Tax Increment Financing (TIF) District for the former country club property, and pay the developer $1 million to “reimburse the developer upfront (for) TIF eligible expenses that will be repaid to the Village from the increased property taxes generated by the development.”
The village further agreed to “expeditiously” review the site plans and construction plans for the project, and grant approvals, following review, “in a timely manner.”
If the village fails to meet its obligations by May 12, the settlement deal allows the developer to disconnect from Homewood, and requires the village to pay the developer $250,000.
The country club owners have been represented by the firm of Sosin Arnold & Schoenbeck.
While the village officials signed off on the deal, the project has now been targeted by a group of activists, calling themselves “South Suburbs for Greenspace Over Concrete.”
The group has pledged to turn out at village meetings to protest the development over concerns the project will create “environmental, noise and air quality problems.” They have particularly centered their complaints on concerns over increased traffic.
The group claims it has members from Homewood, Hazel Crest, and elsewhere in the region. In published reports, members of the group have labeled the proposed redevelopment project a form of “environmental racism,” noting the large numbers of Black residents of the region. The activists have pledged to continue to oppose the project, despite the village’s approval.