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HomeMy WebLinkAbout7.2 In Support of an Application for Cook County 6B Tax Incentive - 3028-3030 Malmo drive BoardDocs® ProPage 1 of 2 Agenda Item Details MeetingJan 15, 2019 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m. Category7. NEW BUSINESS Subject7.2 A RESOLUTION IN SUPPORT OF AN APPLICATION FOR A COOK COUNTY CLASS 6B TAX INCENTIVE FOR THE PROPERTY LOCATED AT 3028 -3030 MALMO DRIVE AccessPublic TypeAction Preferred DateJan 15, 2019 Absolute DateJan 15, 2019 Fiscal ImpactNo Recommended ActionApprove a resolution in support of the Cook County Class 6b tax incentive for the property located at 3028 - 3030 Malmo Drive. Public Content Information Attached to this memorandum is a resolution that would grant approval of a Class 6b property tax incentive for Tatkowski Investment Group LLC (Tatkowski) for the property located at 3028-3030 Malmo Drive. The subject property has been vacant since 2013 and was recently purchased by Tatkowski in 2018. The previous owner and Tatkowski have unsuccessfully marketed the property with the biggest challenge being the property taxes in Cook County which are over double those of surrounding counties. The Village has granted several Cook County Class 6b tax incentives to attract and retain businesses. The 6b incentive reduces the assessment level for qualified manufacturing and warehouse/distribution facilities from 25% to 10% for the first 10 years, 15% for year 11 and 20% in year 12. After year 12, the assessment level returns to the full 25% for the benefitting property. The 6b incentive can also be renewed for additional 12-year terms if supported by the Village. If approved, Tatkowski would lease the space to Avant Tecno USA. Inc. (Avant). Avant is a manufacturer and distributor of skid steer equipment that is utilized throughout the construction, landscaping and farming industries. The skid steer can be modified with over 100 different front loaded attachments and is a highly versatile machine. Avant is currently located immediately north of the subject property in the 28,000 square foot facility located at 3020 Malmo Drive. They would maintain that facility and expand into the subject property if the Class 6b incentive were approved. They would also expand their employee count by approximately 10 employees in 2019. Tatkowski is requesting the Class 6b incentive to reduce the property taxes to around $1.50 per square foot for the property. If the extension is not granted they estimate that their tax bill would rise to $3.50 per square foot. Similar properties in nearby Lake and DuPage County range from $1 to $1.50 per square foot. Alternatives 1. Adopt a resolution in support of a Cook County Class 6b tax incentive for the property located at 3028 - 3030 Malmo Drive. 2. Action at discretion of Village Board. Staff Recommendation Staff recommends that the Village Board approve the resolution in support of the Cook County Class 6b tax incentive for the property located at 3028 - 3030 Malmo Drive. https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login1/16/2019 BoardDocs® ProPage 2 of 2 3028 - 3030 Malmo 6B application.pdf (9,068 KB)Avant.pdf (960 KB) class 6b request 3028 3030 malmo drive.pdf (18 KB) Administrative Content Executive Content Motion & Voting Approve a resolution in support of the Cook County Class 6b tax incentive for the property located at 3028 - 3030 Malmo Drive. Motion by Eleni Hatzis, second by William Grossi. Final Resolution: Motion Carries Yea: William Grossi, Eleni Hatzis, Paul Hoefert, Richard Rogers, Colleen Saccotelli https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login1/16/2019 RESOLUTION NO. A RESOLUTION IN SUPPORT OF TATKOWSKI INVESTMENT GROUP LLC, 3028-3030 MALMO DRIVE,ARLINGTONHEIGHTS, MAKING APPLICATIONFOR COOK COUNTYCLASS 6B TAX INCENTIVE WHEREAS, the Village of Mount Prospect encourages community development to provide for economic growth and career opportunities; and WHEREAS, through property tax incentives offered by Cook County, various opportunities exist for industrial properties in the Village of Mount Prospect, Cook County; and WHEREAS, without the Cook County property tax incentives, the Village of Mount Prospect is at a competitive disadvantage with the neighboring counties of Lake and DuPage in attracting industrial development; and WHEREAS, TATKOWSKI INVESTMENT GROUP LLC,has requested the Village of Mount Prospect support its application for theClass 6B Real Property Classificationat 3028-3030 Malmo Drive,Arlington Heights, Cook County (Property); and WHEREAS, the corporate authorities of the Village of Mount Prospect believe that their request is in the best interest of the economic development in the Village of Mount Prospect. NOW, THEREFORE, BE IT RESOLVED BY THE MAYORAND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE:That the Mayorand Board of Trustees of the Village of Mount Prospect do hereby support and consent to the application for the Class6BTaxIncentiveof a property tax reduction from25% 10 10% for years 1 through 10, 15% in year 11, and 20% in year 12 from Cook County for the Property located at 3028-3030 MalmoDriveand legally described as: LOTS 10 AND 11 IN ELMHURST-ALGONQUIN INDUSTRIAL PARK-UNIT NO. 1,BEING A RESUBDIVISION OF PART OF LOT 3 IN LINNEMAN’S DIVISION IN SECTION 23, TOWNSHIP 41 NORTH, RANGE 11, EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS PIN:08-23-202-024-0000 SECTION TWO:That the Village of Mount Prospect supports industrial growth, increased employment and economic development and the “property” is in furtherance of this goal. SECTION THREE:That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided bylaw. AYES: NAYS: ABSENT: th PASSED and APPROVED this15day ofJanuary, 2019. ___________________________________ Arlene A. Juracek Mayor _________________________________ Karen M.Agoranos Village Clerk