A dispute over the future of a large retail space in Tinley Park has escalated to federal court, with property owner Brixmor Property Group filing a lawsuit against the village. The suit alleges that a municipal moratorium on new grocery stores is illegally preventing the company from leasing a key anchor space at the Tinley Park Plaza.
The legal battle, filed in the Northern Illinois District Court on March 24, centers on a 38,000-square-foot building at 15917 South Harlem Avenue. The space was part of a major redevelopment project and was originally leased to Amazon Fresh. However, Amazon announced the closure of all its Amazon Fresh and Amazon Go stores early this year, and the Tinley Park location was officially vacated in February before ever opening, leaving a significant void in the shopping center.
New York-based Brixmor, a publicly traded real estate investment trust (REIT), claims it has invested more than $17 million into revitalizing the nearly 230,000-square-foot plaza. The company had a new, unnamed "grocery-focused retailer" prepared to take over the empty space but was stopped by a village-wide freeze on issuing new business licenses for grocers.
Village enacted moratorium to study market
In October, the Village of Tinley Park enacted a six-month moratorium on issuing new business licenses for specific uses, including grocery stores. Officials cited a need to study the local market and prevent "oversaturation" of certain types of businesses within the village.
According to Brixmor's complaint, the village's intentions were made clear in a Feb. 17 email, which allegedly stated that any application for a new grocer at the site would be rejected due to the moratorium. This action, Brixmor argues, has left them with a costly, empty storefront and has undermined their significant investment in the community. The village, however, is standing by its decision. In a statement, Village Manager Pat Carr criticized the legal action, stating that similar issues have surfaced in Tacoma, Washington, where a seafood company is suing the city.
This lawsuit lacks merit and will result in wasted taxpayer dollars. We only wish this entity had decided to work with our community instead of filing a lawsuit that should be dismissed.
Lawsuit alleges breach of TIF agreement
A key part of Brixmor’s legal argument revolves around a 2020 Tax Increment Financing (TIF) agreement between the developer and the village. TIF districts are a common economic development tool used by municipalities to spur investment in a specific area. Under a TIF, the property tax base is frozen, and new tax revenue generated from the development is used to reimburse the developer for eligible project costs. For this project, Brixmor demolished 87,000 square feet of existing buildings and constructed 66,000 square feet of new retail space.
The lawsuit contends that the TIF agreement obligated village officials to “cooperate fully” in securing the necessary permits for the project. By implementing the moratorium and refusing a new grocer, Brixmor argues the village has breached this contract. The village's overall financial health has been strong, with officials recently projecting a Tinley Park projects $2.18 million surplus in draft budget for the upcoming fiscal year.
Furthermore, the REIT claims it has "vested rights" to place a grocer in the space. This legal concept suggests that because the village had already granted all land use approvals for a grocery store tenant (Amazon Fresh) long before the moratorium, those rights cannot be retroactively taken away. The case, Brixmor/ia Tinley Park Plaza, LLC v. Village of Tinley Park, is cataloged under case number 1:26-cv-03260, with court documents confirming the suit pertains to a real estate contract dispute.
Economic impacts and an uncertain future
The standoff highlights the challenges of commercial real estate in a shifting retail landscape. The abrupt nationwide closure of Amazon's physical grocery concepts caught many developers by surprise. While Amazon has pivoted to larger, warehouse-style stores in other Chicago suburbs like Orland Park and Oak Brook, the Tinley Park space remains dark.
An empty anchor store can have a ripple effect on a shopping center, potentially reducing foot traffic for smaller adjacent businesses. For Brixmor, which reported a net income of $386.2 million in 2025, the dispute represents a significant local obstacle in its national portfolio. The company's success often depends on its ability to quickly adapt to tenant changes and maintain high occupancy rates in properties like the Tinley Park condominium sells for over $300,000 and its other commercial holdings.
The TIF Act, established under Illinois state law, gives municipalities broad powers to encourage redevelopment but also creates complex legal obligations between governments and private developers. These agreements are crucial for financing large-scale projects that might not otherwise be financially viable.
With the six-month moratorium scheduled to expire on May 7, it is unclear whether village officials will seek to extend it or propose a different path forward. The outcome of the federal lawsuit could set a precedent for how municipalities balance their power to regulate local business composition against prior development agreements.
