Orland Park’s Ninety 7 Fifty may get review
By Mike Nolan email@example.com July 8, 2014 6:38PM
Orland Park officials plan to hire a financial services firm to do an evaluation of the performance of the Ninety 7 Fifty on the Park apartment building, which began getting tenants a little more than a year ago. | Mike Nolan/Sun-Times Media
Updated: July 9, 2014 2:10AM
Now that it has celebrated its first birthday, Orland Park’s Ninety 7 Fifty on the Park apartment building is in line for its first checkup.
Village trustees have given tentative approval to hire a Chicago company to evaluate the performance so far of the 295-unit upscale apartment building.
Kane, McKenna and Associates will examine the building’s tenant mix and identify areas where the project is exceeding, meeting or falling short of financial expectations, according to a brief outline of the scope of the study.
Village officials don’t have concerns that the building isn’t living up to expectations and believe the study results will be “another validation” of the success of the project, according to Joe La Margo, Orland Park’s public information officer.
A village board committee on Monday recommended approval of an agreement with Kane McKenna, and the full board is expected to vote at its July 21 meeting. The firm should begin its analysis by early next month and complete its work by Oct. 1, La Margo said.
The study is expected to cost between $8,000 and $10,000, with funding coming from the fund of the Main Street/Metra Triangle special taxing district.
The apartment building is just south of the 143rd Street Metra station and is part of a larger 32-acre Metra Triangle property, a portion of which was formerly the site of Orland Plaza. Most of that strip mall has been demolished, and University of Chicago Medicine plans to build a medical clinic on part of the land.
The first residents moved into Ninety 7 Fifty in spring 2013, and Kane McKenna will analyze information about them including average income, occupations and ages “to better understand the typical tenant,” according to the village.
Kane McKenna is a financial services firm that specializes in municipal economic development and public finance, according to its website. The company did an independent review of the agreement between the village and Ninety 7 Fifty’s developer, Flaherty & Collins, before the project got underway.
Occupancy in the building has reached 91 percent, up from 84 percent two months ago, an executive with the developer said Tuesday.
Surpassing 90 percent occupancy will trigger an increased payout to the village from excess net operating income, part of the financial agreement between the village and Flaherty & Collins. Now, Orland Park gets 25 percent of excess net operating income generated by rents, but that will increase to a 50-50 split after occupancy stays at 90 percent or above for six months.
The village, in a move criticized by many residents, sold $62 million in bonds for the Main Street redevelopment.
Principal and interest on the bonds will be paid with revenue generated by the redevelopment, including rents from apartment tenants and through long-term commercial leases within the Triangle, such as University of Chicago Medicine. A national restaurant chain is also considering opening near the medical center.