Amazon Wants In To Orland Park, Eyes Former Petey's II Parcel For Massive Development

ORLAND PARK, IL — E-commerce giant Amazon is looking to put down roots in Orland Park, with a proposed commercial retail development at the site of a shuttered restaurant.

Amazon is eyeing the property where Petey's II once stood, before its permanent closing in January 2024. The restaurant had been in business for more than half a century.

Developing plans for the 35-acre parcel at the southwest corner of 159th Street and LaGrange Road include a one story, 229,000-square-foot building housing mostly retail, with a warehouse component to support on-site operations, officials said. Plans also include multiple commercial outlots, officials said.

The proposal "underscores the strength of Orland Park’s market and its appeal to globally recognized companies. Interest from Amazon, one of the top five retailers in the world, reflects confidence in the community, its infrastructure, and its long-term economic outlook," the Village said in a release Saturday.

Officials tout that it represents "a significant potential investment in one of Orland Park’s most visible and heavily traveled corridors."

The plans go before the Plan Commission on Tuesday, Jan. 6. Future consideration by the Village Board would take place at a publicly noticed meeting, at a later date.

“When a global retailer of this scale is considering investment in Orland Park, it sends a strong signal about the vitality of our community and the strategic importance of this corridor,” said Orland Park Mayor Jim Dodge. “It demonstrates that Orland Park continues to be viewed as a premier destination for major commercial investment.”

The proposal is subject to public review and approval, officials said, and the commercial nature of the project "aligns with long-standing goals for the intersection and surrounding area."

“This is a prime location, and we are encouraged to see it being considered for full commercial redevelopment,” Dodge said. “Projects like this have the potential to generate substantial sales tax revenue that directly benefits residents while strengthening one of our most important corridors.”

According to information included with the Plan Commission agenda, the proposed development would function as a "large-format retail location offering a wide range of products, including groceries and general merchandise, with accessory services and potential prepared-food options." The limited warehouse component would support on-site operations rather than serve as a large-scale distribution center.

The agenda document can be viewed online ahead of the meeting.

View a site plan, landscape plan, building elevations, traffic impact study, wetland impact memorandum on the Village's website.

“This type of investment supports not only our local economy but also well-paying jobs during construction and beyond,” Dodge said.

Officials said that a key benefit of the proposal is the sales tax revenue it could generate for Orland Park, "providing long-term financial support for municipal services and capital improvements without introducing residential density into an already busy commercial corridor."

As part of the Village’s ongoing planning for the 159th Street and LaGrange Road area, officials said they plan to continue to evaluate the extension of Ravinia Avenue south to 161st Street, which would create a direct connection to LaGrange Road and improve circulation throughout the corridor. Village officials said projected sales tax revenue from the proposed commercial development would "more than cover the costs associated with the Ravinia Avenue expansion, creating both fiscal and infrastructure benefits for the community.

"Traffic flow, access management, and circulation studies have been conducted and will continue as part of the Village’s review process," officials said in a release. "The concept plan includes separate access points for retail customers and delivery vehicles, designed to improve safety and efficiency while reducing congestion at the intersection. Extending Ravinia Avenue could ultimately divert a significant portion of eastbound and northbound turning traffic away from 159th Street and LaGrange Road."

The proposal is part of broader, ongoing investment and planning activity at the 159th Street and LaGrange Road intersection, which has seen increased developer interest and infrastructure improvements in recent years.

“This is about smart commercial growth that pays for itself, improves traffic movement, and positions this corridor for long-term success,” Dodge said. “Our focus remains on what is best for Orland Park and the community we serve.”

The community in January 2024 was saddened by the closing of Petey's II, which its owners attributed somewhat to changes within the community and the restaurant industry as a whole.

"It is with a mix of gratitude and nostalgia we announce the closing of Petey's II Restaurant, a cherished landmark in the Orland Park community," owners wrote on social media at the time of the closing. "To those who have been loyal and supportive, our family sincerely thanks you for being a part of our journey, our story, our history, our fond memories."

Opened by Pete and Mary Kattos in 1969, Petey's II was the second business venture for the pair, whose Petey's Bungalow Lounge debuted in Oak Lawn in 1961.

Owners went on to say that the decision to close the Orland Park location "was not taken lightly.

"For years, we felt at home in our community, but things changed," the statement read. "The decision to close our doors comes in the wake of significant changes within the restaurant industry and a step closer to Petey’s well-deserved retirement."

At the time of the Orland Park location's closing, the Oak Lawn restaurant remained open. The owners then closed it, too, in October 2024.