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HomeMy WebLinkAbout7.2 A RESOLUTION IN SUPPORT OF CEK TILE, LLC4/16/2020 BoardDocs® Pro Agenda Item Details Meeting Aug 07, 2019 - SPECIAL MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m. Category 7. NEW BUSINESS Subject 7.2 A RESOLUTION IN SUPPORT OF CEK TILE, LLC MAKING APPLICATION FOR A COOK COUNTY CLASS 6B TAX INCENTIVE WITH SPECIAL CIRCUMSTANCES FOR THE PROPERTY LOCATED AT 1911 S. BUSSE ROAD, MOUNT PROSPECT, ILLINOIS Access Public Type Action Preferred Date Aug 07, 2019 Absolute Date Aug 07, 2019 Fiscal Impact No Recommended Action Approve the resolution supporting CEK Tile, LLC's application for a Class 6b tax incentive with special circumstances for the property located at 1911 S. Busse Road. Public Content Information Attached to this memorandum is a resolution that would grant approval of a Class 6b property tax incentive for CEK Tile, LLC (aka C.E. Korsgard or CEK) for the property located at 1911 S. Busse Road. The request is for a Class 6b with special circumstances as the property is being purchased by CEK, but has not been vacant for over 24 months. The property's close proximity to DuPage County with its lower tax rate qualifies it for the special circumstances designation. The incentive would be for 12 years and would entice CEK to move its operations from Wood Dale into this building in Mount Prospect. 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 benefiting property. The 6b incentive can also be renewed for additional 12 -year terms if supported by the Village. CEK currently employs 10 individuals and would hire an additional 5 employees at their expanded facility over the coming years. They specialize in the installation of various tile products in both commercial and residential facilities. Since 1929, the CEKCs name has been synonymous with quality, service, competitive pricing and on-time performance. A third generation, family-owned business, CEK employs the finest union craftsmen available. They provide all aspects of flooring demolition removal, underlayment preparation and professional installation. CEK is requesting the Class 6b abatement to maintain their taxes at around $1.50 per square foot for their 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. Approve the resolution supporting CEK Tile, LLC's application for a Class 6b tax incentive with special circumstances for the property located at 1911 S. Busse Road. 2. Action at discretion of Village Board. https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 1/2 4/16/2020 Staff Recommendation BoardDocs® Pro Staff recommends that the Village Board approve the resolution supporting CEK Tile, LLC's application for a Class 6b tax incentive with special circumstances for the property located at 1911 S. Busse Road. Administrative Content Executive Content Motion & Voting Approve the resolution supporting CEK Tile, LLC's application for a Class 6b tax incentive with special circumstances for the property located at 1911 S. Busse Road. Motion by Michael Zadel, second by Paul Hoefert. Final Resolution: Motion Carries Yea: William Grossi, Eleni Hatzis, Paul Hoefert, Michael Zadel https://go.boarddocs.com/il/vomp/Board.nsf/Private?open&login 2/2