Oswego School District 308 is taking another step in the possible redevelopment of the former Traughber Junior High School property in Oswego.

During the Feb. 23 Oswego school board meeting, board members heard the details of what the transfer of the property to the village of Oswego would involve.

Oswego village trustees in December unanimously approved a concept plan for a 161-unit apartment and townhouse development to be developed on the property.

The property is located at 61 Franklin St. near the intersection of Washington Street and U.S. Route 71.

“Because you’re both government agencies, you are able to make a transfer of property between you on such terms as you deem appropriate,” attorney Stuart Whitt told school board members during the meeting.

Next month, the village is set to adopt an ordinance declaring its need to acquire the property for redevelopment purposes. After that, the school board will consider a resolution indicating it no longer needs the property for school purposes.

Following that, the two bodies will enter into an agreement where the school board would agree to sell the property and the village would agree to buy the property.

“The village will then turn around and try to work out a redevelopment agreement with the developer of the property,” Whitt said. “That redevelopment agreement will have to please the developer, it will have to please the village and it will have to please you. And if any one of you are unhappy with the agreement, everything is off and you go back to square one. There is no commitment made here. You always have the opportunity to bail out.”

During the meeting, school board members unanimously approved an intergovernmental agreement with the village for a financial analysis to be done on redevelopment plans for the former school property.

The property is located in a tax increment financing district. When a municipality creates a TIF district, its property assessment is frozen and new or increased taxes generated by improvements are used to pay for improvements or other development incentives.

“We are required to do some due diligence,” District 308 chief financial officer and chief school business official Raphael Obafemi told Oswego school board members on Feb. 9. “We have to make a decision that’s in the best interest of the folks that we represent here.”

He noted the project will be paid for in large part by TIF funding.

Both the village and District 308 will benefit from the consultant’s work, Obafemi said as the analysis will help future decision-making on the potential redevelopment of the property.

“Ultimately, the goal is to find an objective source to help us get to the other side,” District 308 School Superintendent Andalib Khelghati said.

The village and the school district will each pay Johnson Research Group Inc. $10,000 for the services.

JRG specializes in tax increment financing as well as urban revitalization and planning.

In response to village trustees voicing concerns about the height and density of the development, the developer scaled back the plans for Traughber Estates.

Trustees as well as Oswego Village President Ryan Kauffman thought a five-story building proposed as part of the plan was too tall, especially in comparison with the rest of the development.

The building has been removed and replaced with two three-story apartment buildings. In addition, the number of units has been reduced from 202 units to 161 units.

As proposed, five three-story apartment buildings containing 125 units would be built as part of the latest plan. Also proposed are six two-story owner-occupied townhouse buildings containing 36 units.

“This is not my favorite project,” village trustee Karin McCarthy-Lange said prior to voting to approve the concept plan. “I don’t want to stand in the way of helping the school district financially. It’s not my ideal project. It’s not as creative as I would have liked it. It’s not as original as I would have liked. But I cannot in good faith stand in the way of saving the school district money and helping them in the long run.”

The building served as the original Traughber Junior High School until the current Traughber Junior High School was built in 2008. The property is 12.34 acres in size, with the building sitting on four acres.

It hasn’t been fully operational since 2007, Khelghati said.

“There were 100 staff members in and out of that building every single day,” he said.

Khelghati said the property has become an albatross around the district’s neck. He said the district has to spend $250,000 a year for its upkeep.

“That does not include insurance costs,” he said.

A plan in 2018 to turn the building into a senior housing complex fell through.

Longtime Oswego resident Don Draksler, who lives on Garfield Street, was one of several residents who spoke against the proposal.

He said the intersection of U.S. Route 71 and Plainfield Road/Washington Street already is extremely congested. Oswego High School also is located near the intersection.

Kauffman noted a traffic study will have to be done before the project can move forward.

“The traffic study is going to be hugely impactful,” he said after the meeting. “If it comes back and it shows that it would be catastrophic to traffic in the area, we’re not going to let it go forward. But if it comes back and it shows it would have a nominal or minimal impact to the traffic in the area, then that is no longer a concern.”