Orland Park is applying for a state economic development program that could unlock federal tax incentives for investors willing to redevelop Orland Square Mall and the surrounding area.
The village identified one eligible census tract — the only one in Orland Park — that contains the mall. If designated, investors could defer federal capital gains taxes for up to 10 years and receive permanent exemptions on those gains if they keep money invested in the zone for a decade.
Trustee Bill Healy, a local CPA, said the opportunity zone program was restructured in July 2025 with stricter eligibility criteria. Previously, 327 Illinois census tracts qualified. Now, only about 249 will be eligible—making the designation more competitive and potentially more valuable to communities that secure it.
Healy said the village had been trying to get a portion of land (between 143rd and 151st streets and LaGrange Road to about 86th Avenue designated as an opportunity zone.
“It really is a good investment tool since taxes are deferred for up to 10 years,” he said. “The “features of this are so big for investors that I think over time it’s going to have a bigger and bigger effect.”
The application deadline is April 30. The state has until October to submit nominations to the U.S. Treasury, which will certify designations effective January 1, 2027, for the next 10 years.
Village finance director Chris Frankenfield said: “There couldn’t be a more important census tract in terms of the economy than the one that contains Orland Square Mal.”
The application costs the village nothing.
The village is already pursuing a Tax Increment Financing district for the former Sears redevelopment at the mall. A development agreement has been signed, and staff has met with the development team to move forward on entitlements and building permits.
Village Manager George Koczwara said the village has received encouraging early feedback on grant funding to help offset costs.
If designated, the opportunity zone could be active by January 2027, giving investors a decade to redevelop the mall and surrounding area.