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Dialysis Center on Church Property Moves Forward

A developer also has expressed interest in building retail on the front portion of the land.

Plans to build a kidney dialysis center on land the city is helping develop appear to be moving along.

The back portion of what is known as the "church parcel" on 159th is slated to be used as a kidney dialysis center. The use of the building as a dialysis center was approved by the state this month, said Troy Ishler.

“The site has been approved for this type of facility,” Ishler said.

While the back half continues to progress, the destiny of the front portion of the city-owned property at 5340 W. 159th St. remains up in the air.

Mayor Hank Kuspa said at a meeting earlier this month that a developer is interested in leveling the old church at the site and putting in retail. He didn't elaborate on who that developer was or how far along those plans were.

The sale of the back half of the property to Net3 Real Estate for $270,000 was approved by the City Council in April. Community Development Director Adam Dotson said then that a groundbreaking on the medical facility might not happen until as late as August.

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Julia June 12, 2012 at 02:09 PM
Retail? I hope not since they can't even fill all the empty store fronts we have now!!
Nick Swedberg (Editor) June 12, 2012 at 02:35 PM
@Julia—I don't think it's that simple. There are many factors that cause a store front to go empty. In the case of the property referenced in this story, market research might show that the area will support a particular kind of development. I don't think empty store fronts are, necessarily, an indicator of how successful another development might be.
Brian June 12, 2012 at 03:19 PM
While I am glad to hear something might finally be going here I have a few concerns/questions; 1) What was the cost of the entire parcel that the city paid 2) What tax classification does a dialisys center fall under, and what revenue would the city see with its addition 3) Are there special incentives being offered in this case, such as TIF funds 4) Why sell the property at a low cost to a private real estate company, rather than marketing the property itself to the prospective client. Keeping my fingers crossed that things progress as planned on this, I would ask that the city and patch keep us informed with regular updates on this parcel.
chuck toland June 12, 2012 at 03:31 PM
Updates will follow as we get information, but we cannot discuss prospective buyers until a deal is made. As far as what taxes the Dialysis Center will produce is the same that the former church would produce. The most important factor we considered was the traffic the center would produce. People who are getting treatments are often there for several hours. The people who dirve them there need to eat lunch, buy gas, and often do their daily activities like shopping or getting hair cuts while they are waiting for the patient. This should produce traffic to our neighborhood businesses. Also, the real estate broker in this venture wants the opportunity to market the rest of the property. This gives the city another group of people actively searching for businesses who would like to loacte on a main road. Believe it or not, Oak Forest is close on a couple of new businesses locating in town. It is exciting. Only time will tell, but we are close.
Tired of the B.S. June 12, 2012 at 05:14 PM
Chuck Toland said, "As far as what taxes the Dialysis Center will produce is the same that the former church would produce." Does this mean that the dialysis center will pay NO TAXES, like a church? I hope the people that drive the patients will need a lot of gas, lunch and haircuts to make up the difference. Look at all the people that come into Oak Forest for the big church on 151st St. They drive in and drive out, no haircuts, no lunches, little gas purchased in our city, but a big chunk of property that pays no taxes.
chuck toland June 12, 2012 at 06:10 PM
The Dialysis Center will pay property taxes. I am not sure if churches are exempt from property taxes or not, but the Dialysis Center will definately pay property taxes. There just is no sales taxes generated on medical. If they sell goods at the center, that will generate sales tax revenue. As far as the church on 151st Street, you are correct. That is a good example of why it was good for the city to purchase the land in the first place. We now have more control over what business will go there. The frontage property will certainly be more desirable now that there is built in traffic for the center. When the church bought that property on 151st there were those who felt the city or park district should have bought the property. Things might be a little different if they had.
Tired of the B.S. June 12, 2012 at 07:24 PM
Chuck, could you answer the questions asked by Brian asked, please.
Nick Swedberg (Editor) June 12, 2012 at 08:17 PM
I can talk with Adam Dotson and Chuck tonight to get those questions answered for a story. Does anyone else have any more questions?
chuck toland June 12, 2012 at 08:30 PM
1. The purchase price for the entire parcel was $1.5 million; it appraised for more, and the part we sold was only a portion, and it was not the prime frontage property. 2. It falls under the class 5A. 3. The parcel already falls under a Class 8, or TIF and pays as you go. 4. The client is not a developer and not landowner. They are medical-need real estate company to complete the real estate transactioni and build to suit for the client, and will be the landlord.
Tired of the B.S. June 12, 2012 at 09:11 PM
Thanks for the prompt reply, Chuck Could you be a little clearer on your response #4. Is the client the dialysis people and they need somebody to purchase and develop the property for them? If so, is there somebody that is lined up to do this or is the city just hoping that a developer will come forward?
chuck toland June 12, 2012 at 09:24 PM
Sorry for the broken sentence. What I meant was the Dialysis Center will not be the land owner. The owner will be a medical real estate company. They will build to meet the needs of the medical center specifically, and they will be the landlord. They are not the developer, but will hire one. They will receive rent from the .Dialysis Center. I was trying to clearify that the city will not be doing any of the construction and no risk. After selling the land, the real estate company will control and pay for the construction as needed, and they will take the risk of having a tenant, which they already have, and will build to their specifications.
Tired of the B.S. June 12, 2012 at 09:46 PM
Thanks again
Mike Ziak June 13, 2012 at 01:06 PM
Chuck, I know we've agreed to disagree on numerous topics, but this is one I agree with you on. I think the City buying of these large parcels is a good idea. I know there are quite a few people who thinks its bad, but the failure of past administrations to do just this and annex other parcels, while other towns were gobbling them up, is what has locked us into where we are now. One of the failures of the past, in addition to the church on 151st, is the failure to acquire the convent property. If that had been done, it would have ball fields, a new rec center and all of the other things that people are wishing were here now. Another failure is I wish more property was acquired at the Gateway, before anything was built. I also see why people get upset with the City spending money like this, after raising taxes and saying there's no money. People are leery of government spending and rightfully so. The Tribune, surprisingly, had a really good article in Sundays paper about the deals that Bridgeview did for the soccer stadium and how the revenue projections have fallen short and how the taxpayers are on the hook for it. its a good article and I encourage everyone to read it.

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