Park District Asks For Village's Help Purchasing Borg Warner

FRANKFORT, IL — The Frankfort Park District has asked the Village of Frankfort for assistance in funds to purchase the Borg Warner plant after learning that there are already several offers to buy the property, according to a release from the park district.

After Borg Warner announced it would close its Frankfort plant at the end of 2021, the park district began gathering information about acquiring the property and redeveloping it into a community recreation center. In April's non-binding referendum, 56 percent of voters supported the park district looking into this idea further, the park district said in a release.

However, the park district has now learned that there are several offers to purchase the property, including at least one from an industrial buyer.

“We knew this could happen, but staff was surprised to hear that the property had an offer that may have a continued industrial [use]. Given the location around Borg Warner is surrounded by residential and access to the plant is limited to traffic on Locust Avenue, the Park District thought if we were to lose the opportunity to purchase the plant, that the competition would be from a developer to build homes," Executive Director Gina Hassett said. "There is limited housing opportunities in the downtown district and demand is high. This news of the pending sale contract has led the Park District to look at alternative options to acquire the property while we engage in the referendum process."

The park district said it does not have the funds on-hand to purchase the property. The district had planned on another referendum for Frankfort voters in the 2022 election cycle.

After learning about the offers, the park district decided to look at other ways to secure the property, and reached out to the Village of Frankfort. The Frankfort Village Board held a special committee of the whole meeting on June 2 to discuss the park district's request to assist with securing the property, according to a news release.

The park district asked the village if it would consider loaning the park district the funds to purchase the property, contingent on the referendum. If the referendum for the community center didn't pass, ownership of the property would revert to the village, according to the park district.

“The Park District is sensitive that Mayor Ogle and several Village officials have been in office for just over a month. This ask is large and there is a great deal for the Village Board to consider," Hassett said.

According to the park district, if the village assisted with the purchase, it would not impact resident's taxes.

The Village’s most recent master plan notes that if Borg Warner left the property, it would be rezoned as residential. If the property gains a new industrial owner, that option is lost, the park district said.

If the property remains available, either unsold or owned by the Village, the Park District will do its due diligence in engaging the community and consultants to bring the question to the voters in 2022, the park district said.

Borg Warner has operated an industrial property in the downtown area since the 1960s, the park district said. The plant is on 27 acres, with a fair amount of open space, and also allows access to a baseball field on the property, commonly known as Borg Warner field.

According to a listing for the property, there is 20,000 square feet of office space, and 249 parking spaces. An office space listing site puts its sale price at $7.3 million.

The park district has been told the appraised value of the property is between $7.5 to 8 million.

• Frankfort Parks Voters Support Acquiring Borg Warner Plant
• Park District Moves Forward In Evaluating Borg Warner Property