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HomeMy WebLinkAbout7.2 A Resolution in Support of Braun Manufacturing LLC's renewalof Class 6B Incentive 8/20/2019 BoardDocs®Pro v „tllr' T-77 Agenda Item Details Meeting Aug 20, 2019 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m. Category 7. NEW BUSINESS Subject 7.2 A RESOLUTION IN SUPPORT OF BRAUN MANUFACTURING COMPANY LLC IS APPLICATION FOR A RENEWAL OF A CLASS 6B INCENTIVE FOR THEIR PROPERTY LOCATED AT 1350 FEEHANVILLE DRIVE Access Public Type Action Preferred Date Aug 20, 2019 Absolute Date Aug 20, 2019 Fiscal Impact No Recommended Action Approve the resolution supporting Braun Manufacturing Company, LLC's application for a renewal of a Class 6b tax incentive for their property located at 1350 Feehanville Drive. Public Content Information Attached to this memorandum is a resolution that would grant approval of a renewal of a Class 6b property tax incentive for Braun Manufacturing Company LLC (Braun) for their property located at 1350 Feehanville Drive. The request is for a second renewal of their Class 6b that would enable Braun to continue its operations in the Kensington Business Center. 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. Braun currently employs 27 full time individuals consisting of management, administrative support and union machinists. They specialize in the manufacture of specialty hinges that are used in a wide spectrum of projects. They have over 700 stock hinges that they distribute throughout the world. Braun is requesting the Class 6b renewal to maintain their taxes at around $1.50 per square foot for their property. If the renewal 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. Approve the requested resolution supporting Braun Manufacturing Company, LLC's application for a renewal of a Class 6b tax incentive for their property located at 1350 Feehanville Drive. 2. Action at discretion of Village Board. Staff Recommendation https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login# 1/2 8/20/2019 BoardDocs®Pro Staff recommends that the Village Board approve the resolution supporting Braun Manufacturing Company, LLC's application for a renewal of a Class 6b tax incentive for their property located at 1350 Feehanville Drive. Braun 6b application.pdf (175 KB) Braun cover letter.pdf (108 KB) 6B BRAUN RENEWAL.pdf (21 KB) 1350 Feehanville Dr. Aerial (002).pdf (422 KB) Administrative Content Executive Content https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login# 2/2 a° o 0r ro COOK COUNTY ASSESSOR'S OFFICE COOK COUNTY ASSESSOR 118 NORTH CLARK STREET, CHICAGO, IL 60602 JOSEPH B E R R I O S s PHONE: 312.443.7550 FAx:312.603.3352 <I NO." VVM.000KCOUNTYASSESSOR.COM CLASS 613/8 Control Number RENEWAL APPLICATION -- 61104 AMENDED A certified copy of the resolution or ordinance obtained from the municipality in which the real estate is located, or from the Cook County Board of Commissioners if located in an unincorporated area, must accompany this Renewal Application. This application, resolution and a filing fee of $500.00 must be filed. For assistance in preparing this Renewal Application, please contact the Cook County Assessor's Office Development Incentives Department at (312) 603-7529. I. Identification of Applicant Name: Braun Manufacturing Company Telephone: (847 ) 635-2050 Address: 1350 Feehanville Drive City, State: Mt. Prospect, IL Zip Code: 60056 Email Address: Agent/Representative (if any) Name: Robert E. Welsh Telephone: (312 ) 551-3332 Address: c/o Madigan & Getzendanner; 30 North LaSalle Street, Suite 3906 City, State: Chicago, IL Zip Code: 60602 Email Address: rwelsh@madigetz.com 11. Description of Subiect Property Street address: 1350 Feehanville Drive City, State: Mt. Prospect, IL Zip Code: 60056 Permanent Real Estate Index Number (s): 03-35-104-038-0000 03-35-104-056-0000 Township: Wheeling III. Identification of Persons or Entities Having an Interest Attach a current and complete list of all owners, developers, occupants and other interested parties (including all beneficial owners of a land trust) identified by names and addresses, and the nature and extent of their interest. Attach legal description, site dimensions and square footage, and building dimensions and square footage. IV. Property Use Attach a current and detailed description of the precise nature and extent of the use of the subject property, specifying in the case of multiple uses the relative percentages of each use. If there have been any changes from the original application, include current copies of materials which explain each occupant's business, including corporate letterhead, brochures, advertising material, leases, photographs, etc. V. Nature of Development Indicate the nature of the original development receiving the Class 613/8 designation ❑✓ New Construction ❑ Substantial Rehabilitation Occupation of Abandoned Property - No Special Circumstance Occupation of Abandoned Property -With Special Circumstance VI. Employment How many permanent full-time and part-time employees do you now employ? On-Site: Full-time: 27 Part-time: In Cook County: Full-time: Part-time: VII. Local Approval A certified copy of a resolution or ordinance from the municipality in which the real estate is located (or the County Board, if the real estate is located in an unincorporated area) must accompany this renewal. The ordinance or resolution must expressly state that the municipality supports and consents to this Class 613/8 Renewal and has determined that the industrial use of the property is necessary and beneficial to the local economy. 2 Charles R. Braun I, the undersigned, certify that 1 have read this Renewal Application and that the statements set forth in this Renewal Application and in the attachments hereto are true and correct, except as those matters stated to be on information and belief and as to such matters the undersigned certifies that he/she believes the same to be true. July 31, 2019 Signature Date Charles R. Braun Print Name President Title Revised November4,2014 3 INCENTIVES CLASS LIVING WAGE ORDINANCE AFFIDAVIT Charles R. Braun as agent for the applicant set forth below, who is seeking a classification incentive as referenced below, I do hereby state under oath as follows: 1. As the agent for the applicant set forth below, I have personal knowledge as to the facts stated herein. 2. The property identified by PIN(s) with commonly known address(es), listed in Exhibit A attached and herein incorporated, are/is the subject of a pending application/renewal (circle as appropriate) for one of the following development incentives provided by the Code of Ordinances of Cook County, Chapter 74, Article II, Division 2, The Cook County Real Property Assessment Classification Ordinance, Sec.74-60 et seq., as amended: X Class 6b Class 8 (industrial property) ^ Class 9 3. The Cook County Assessor's Office has issued the following control number regarding this application/renewal (circle as appropriate), 61104 4. 1 have reviewed the Code of Ordinances of Cook County, Cook County Living Wage Ordinance, as amended (the "Ordinance"), and certify that the applicant is in compliance with the above referenced Cook County Living Wage Ordinance, due to one of the following options (check as appropriate): X Applicant is currently paying a living wage to its employees, as defined in the Ordinance. OR Applicant is not required to pay a living wage, pursuant to the Ordinance. Further affiant sayeth not. (1, President Agent's Signature Agents Name&Title 1350 Feehanville Dr., Mt. Prospect, IL,60056 (847)635-2050 Agent's Mailing Address Agents Telephone Number Braun Manufacturing Company 1350 Feehanville Dr., Mt. Prospect, IL 60056 Applicant's Name pp scants Mailing Address chuck@hingel.com Applicant's e-mail address Subscribed and sworn before me this �1_ day of U-0 I< , 20 h Signat� oTT tary Public 1/30/15 DARLENE P LUPO 4 OFFICIAL SEAL 0 Notary Public,State of Illinois My Commission Expires July 03, 2022 EXHIBIT A (Please type or Print) PIN(s) Common Address 03-35-104-038-0000 1350 Feehanville Dr., Mt. Prospect, IL 60056 03-35-104-056-0000 1350 Feehanville Dr., Mt. Prospect, IL 60056 1/30/15 5 [ This is page is blank intentionally] 6 MADIGAN & GETZENDANNER ATTORNEYS AT LAW SUITE 3906 30 NORTH LA SALLE STREET CHICAGO,ILLINOIS 60602-2507 TELEPHONE PHFAX ....._..... (3122 )346-4321 MICHAEL J. MADIGAN LTD. 2)346-5619 VINCENT J.G HAROLD GETZENDANNER,JR.LTD www.madigetz.com Jw.....-CKS WRITER'S DIRECT DIAL NUMBER: Senior Real Estate Analyst JEFFREY A.HOLLANDDONALD F.STANNER ` MICHAEL C.PRINZI ROBERT E.WELSH (312) 551-3332 July 24, 2019 VIA EMAIL AND U.S. MAIL Mr. William Cooney, AICP Community Development Director Village of Mount Prospect 50 South Emerson Street Mount Prospect, Illinois 60056 Re: 1350 Feehanville Road; Mt. Prospect, Illinois; Class 6b Real Estate Tax Incentive Renewal Dear Mr. Cooney: The enclosed documentation represents the request by Braun Manufacturing Company, Inc. for consideration by the Village of Mount Prospect of the Class 6b Incentive renewal program. As you know, the current building owner operates a well-established specialty manufacturing business. As part of a long-term planning initiative, the company is evaluating existing cost structures to ensure the ongoing viability of the property. In order for the Mount Prospect location to compete with surrounding properties receiving the Class 6b, as well as numerous collar county locations, the Class 6b remains a necessary component in the control of operating costs. During the period of the existing 6b Incentive,the company has made a significant contribution to the local Mount Prospect economy through continued growth in employment and improvements made to the property along with participation in community activities. A more detailed description of the company and their activities is as follows, MADIGAN & GETZENDANNER Mr. William Cooney July 24, 2019 Page 2 The following list highlights some of the community benefits provided by the property,along with the completed and planned capital improvements: ➢ Braun is a 92-year-old family owned manufacturing business. The company employs 27 full-time employees., 6 management, 5 administrative, 14 highly- skilled union machinists and 2 union material handlers/shipping. Three employees have been added in 2019. The business is a fully integrated state-of-the-art manufacturing facility, );I. As a small company, Braun has also experienced the difficulties of doing business in a global manufacturing environment. The business is under continuous pressure due to the highly competitive landscape that has put significant pressure on profit margins, Community Involvement • Sponsored onsite blood drives/food drives Volunteer work with the local food pantry • Volunteer work with the Clothing Closet in Mount Prospect Capital Improvements • Replaced HVAC units on the rooftop • Installed additional exterior security lighting around the building • Replaced main computer system Capital Improvements Needed • Roof • Electrical Upgrades needed to counteract local power surges • Production Equipment—Mazak Laser Machine • Production Equipment —Press Brake Machine • LED Lighting Conversion • Overhead Shipping Doors To begin the incentive renewal process, we would welcome the opportunity to meet with you to discuss existing business operations and detail the continued commitment to business growth in Mount Prospect, As aforementioned, two items of significant interest involve the long-term goal of expanding the existing work force in the coming years and to continue to make investments in the property. Both of these goals cannot be reached without the continued operating benefit afforded by the Class 6b Tax Incentive. MADIGAN & GETZENDANNER Mr. William Cooney July 24, 2019 Page 3 Your attention to this matter is greatly appreciated, and I took forward to working with you in this most important process. With that in mind, should you have questions, or require any additional documentation, please contact me directly at(312) 551-3331 Very truly yours, Robert E. Welsh Enclosure G:\COOK\Wheeling\2538-03-35-104-056-1350 Feehanville Drive\Class 66\2019\1-tr to W,Cooney.doox RESOLUTION NO. A RESOLUTION IN SUPPORT OF BRAUN MANUFACTURING COMPANY LLC'S APPLICATION FOR A RENEWAL OF A CLASS 6B INCENTIVE FOR THEIR PROPERTY LOCATED AT 1350 FEEHANVILLE DRIVE, MOUNT PROSPECT, ILLINOIS 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, Braun Manufacturing Company LLC, has requested the Village of Mount Prospect support its application for Extension of the Class 6B Real Property Classification at 1350 Feehanville Drive, Mount Prospect, 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 BYTHE MAYOR AND BOARD OFTRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor and Board of Trustees of the Village of Mount Prospect do hereby support and consent to the application for the Class 6B Renewal of a property tax reduction from 25% to 10% for years 1 through 10, 15% in year 11, and 20% in year 12 from Cook County for the Property located at 1350 Feehanville Drive and legally described as: PARCEL A: LOT 602 (EXCEPT THAT PART LYING IN THE WEST 1/2 OF THE NORTHEAST 1/4) IN KENSINGTON CENTER RESUBDIVISION 19, A RESUBDIVISION OF LOT 601 IN KENSINGTON CENTER PHASE 6, BEING A RESUBDIVISION OF OUTLOT 1 IN KENSINGTON CENTER RESUBDIVISION PHASE 3-A, BEING A SUBDIVISION IN PART OF THE NORTHWEST 1/4 AND THE NORTHEAST 1/4 OF SECTION 35 TOWNSHIP 42 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS. AND LOT 602 IN KENSINGTON CENTER RESUBDIVISION 19, A RESUBDIVISION OF LOT 601 IN KENSINGTON CENTER PHASE 6, BEING A RESUBDIVISION OF OUTLOT 1 IN KENSINGTON CENTER PHASE 3-A BEING A SUBDIVISION IN PART OF THE NORTHWEST 1/4 AND THE NORTHEAST 1/4 OF SECTION 35 TOWNSHIP 42 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS Property Index No. 03-35-104-056 and 03-35-200-038; and 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 by law. AYES: NAYS: ABSENT: PASSED and APPROVED this 20th day of August, 2019. Arlene A. Juracek Mayor Karen M. Agoranos Village Clerk ry I m V a r 1350 Feehanville Drive n I 0 ., rr�✓�/ / //!r/ !fir " Iyr r l i / h cYir 94 tii � i /r� um ` "