Annexation by Tinley Park of 111 acres northeast of Harlem Avenue and Vollmer Road will help clear the way for development of up to 1.3 million square feet of industrial space for warehousing and distribution.

Tinley Park trustees approved the annexation Tuesday and backed a Cook County resolution that would give Indianapolis-based Scannell Properties a temporary property tax break.

The company itself is not asking for incentives from the village, such as creation of a tax increment financing district.

The property is directly north of an Amazon fulfillment center underway in Matteson.

The annexed property, previously in unincorporated Cook County, was once considered a possible location for a combination casino and harness racing track.

Scannell is expected to close on the purchase of the property this month.

Up to three buildings could be constructed, and the first would be just under 200,000 square feet and be located at the north end of the site, according to plans.

Scannell plans that to be a speculative building, with no designated tenant lined up to occupy it. It would have 24 loading docks and outside space for storing up to 50 trailers.

A second building, directly south of the first one, would be about 605,000 square feet, and a third building would be 462,000 square feet, according to the proposal. Those two buildings could be

combined, however.

The entire property would be accessible at three locations along Harlem, including at the stoplight at Benton Drive, and there would also be access from Vollmer, according to plans.

Scannell has also agreed to extend a water line that will serve the industrial property to connect with water service lines in the Odyssey Country Club subdivision to the east.

John Urbanski, public works director, said the subdivision is served by a line, probably about a quarter century old, that runs under Ridgeland Avenue. Should it break or otherwise need repair, water service to the entire subdivision would be interrupted, so the new line will guarantee a redundant source of water for those homeowners, he said.

The Village Board endorsed a resolution that will be directed supporting a Cook County property tax break for Scannell, though the county would have to give final approval.

Commercial property is typically assessed for tax purposes at 25% of fair market value, and the Class 8 designation would lower that to 10%, or the assessment level for homes, for 10 years. In the 11th year the assessment level would rise to 15%, followed by 20% the next year.

The property tax incentive can be renewed.

Village officials said even with the reduction in assessment, the property is expected to generate $370,000 annually in property tax revenue for the village.

mnolan@tribpub.com