CDC approves $5 million in TIF for Morgan Park Commons

The Community Development Commission has approved $5 million in TIF funding and a land sale for the first phase of Morgan Park Commons, a mixed-use development located at the northwest corner of W. 115th St and S. Halsted St. Addressed at 11420 S. Halsted, the new multi-phase development would be built on the 12-acre site of a former Jewel-Osco that has been vacant for over 16 years.

Planned by the Far South Community Development Corporation, POAH, and DL3 Realty, the site will be split up into multiple phases encompassing 244 residential units, retail space, a performing arts center, and a new 2-acre park for the neighborhood. The development will reintegrate the property into the city grid with the dedication of a new W. 114th Pl and S. Peoria St.

Designed by Lamar Johnson Collaborative, the first phase will include two five-story mixed-use buildings. Topping out at 60 feet tall, the buildings will have a total of 70 apartments, 72 bike parking spaces, and 80 car parking spaces. The 70 residential units will be mixed-income with a split of 66 units at varying AMI levels, including 17 CHA project-based voucher units, and four live/work market-rate units.

Separated by W. 114th Pl along S. Halsted St, the north building of the two will be Building A.1 which will have two live/work units on the ground floor, 1,193 square feet of retail space, a fitness center, and back of house spaces with 36 bike parking spaces outside underneath the building. 41 car parking spaces will be located behind the building in a surface lot. The upper floors of the building will have 35 residential units with a mix of 3 studios, 17 one-beds, and 15 two-beds. 

To the south of W. 114th Pl reaching down to W. 115th St, Building A.2 will have two live/work units on the ground floor in addition to a community room and office space with mechanical along the back side of the building. A further 36 bike parking spaces and 40 car parking spaces will be included behind the building. The upper floors will have 35 residential units with a mix of 3 studios, 17 one-beds, and 15 two-beds. 

The buildings have been designed as cousins, using the same design language but not being direct replicas of one another. The massing of each building has been broken down with a differentiation in the massing and materials used on the facade. The differentiated planes of the building facade articulate the program of the building within. 

The $54.6 million project cost for Phase 1 is expected to be funded with $1.1 million in private debt, $37 million in LIHTC equity, $9.1 million in city multifamily loan funds, $5 million in TIF, a $800,000 Illinois Donation Tax Credit, $500,000 in reinvestment earnings, and a $1 million deferred developer fee.

The site for Phase 1 is currently under mixed city and developer ownership. With CDC approval secured, the project is a step closer to the conveyance of the city-owned land and securing the proposed $5 million in TIF funding. The land sale and TIF funding will need final approval from the City Council before the developer could proceed with their financial closing. Construction of the $65 million Phase 1 could begin by Fall 2026.