Skokie trustees advance Old Orchard redevelopment and hold first reading on affordable-housing ordinance after hours of public comment

Trustees on the Village of Skokie board approved a site-plan ordinance to convert two existing office buildings at 5202 and 5250 Old Orchard Road into a two-phase, 245-unit residential mixed-use project, and took up a first reading of a revised affordable-housing ordinance after more than an hour of public comment on April 15.

The site-plan motion, introduced by Corporation Counsel Michael L. and seconded by trustees, passed on a roll-call vote after discussion. The developer agreed to designate 5% of units in the south tower as affordable at 120% of area median income (AMI) for at least 25 years, retain an existing clinic, and convert part of the parking deck into green recreational space with electric charging stations.

The board then heard staff present the fourth draft of a proposed affordable-housing ordinance that would amend Chapters 46 and 58 of the Skokie Village Code. The draft establishes tiered requirements for new development, creates a narrowly defined affordable-housing renovation grant program limited to tenant health, safety, ADA and sustainability work, and preserves a payment-in-lieu (fee-in-lieu) pathway. Staff told the board that payments collected would be used only for owner-occupied affordable units, land trust programs and a renovation grant program, with no more than $300,000 per year earmarked for those renovation grants if awarded.

Public commenters, housing advocates and several trustees criticized the proposed ordinance’s reliance on a fee-in-lieu option, warning that it may produce few or no new on-site affordable units. Tom Whitaker of Community Partners for Affordable Housing, who read a prepared statement on procedural and program design concerns, recommended that the ordinance include developer cost offsets (density bonuses, height relief, parking relief) and clearer differentiation between rental and owner-occupied income tiers to make on-site affordable units financially feasible.

Trustee Johnson and others pressed staff and Community Development Director Johanna for clarifications about the ordinance’s AMI targets, tier calculations and whether fees would be allowed broadly. Johanna said the ordinance uses HUD regional AMI tables (Chicago-Naperville-Joliet metro) to set 60% AMI for rentals and 80% AMI for owner-occupied units in the draft; she confirmed that enforcement details and administration of any renovation grants would be implemented by the Village manager’s office and further refined if the ordinance advances.

Supporters of inclusionary zoning urged stronger requirements for on-site units; opponents said the village lacks the subsidies developers would need to build deeply affordable units and that a fee program could be used to rehabilitate existing substandard units in-place. Several residents asked whether the Westfield mall redevelopment proposal would be subject to the ordinance; staff said the Westfield submission preceded the ordinance, and therefore would not be covered retroactively.

The board treated the measure as a first reading; no adoption vote was held and trustees asked staff to return with clarifications at a later meeting. The site-plan approval for the Old Orchard Road conversion passed, and the ordinance will return to the board for additional review and possible amendment before a final vote.