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HomeMy WebLinkAbout7.1 A Resolution in Support of Facet Holdings LLC Application for Class 7C TAx Incentive - 303 E. Kensington Road BoardDocs® ProPage 1 of 2 Agenda Item Details MeetingJun 05, 2018 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - 7:00 p.m. Category7. NEW BUSINESS Subject7.1 A RESOLUTION IN SUPPORT OF FACET HOLDING LLC's APPLICATION FOR A COOK COUNTY CLASS 7C TAX INCENTIVE FOR THE PROPERTY LOCATED AT 303 E. KENSINGTON ROAD. AccessPublic TypeAction Preferred DateJun 05, 2018 Absolute DateJun 05, 2018 Fiscal ImpactNo Recommended ActionApprove the resolution in support of Facet Holding LLC's application for a Cook County Class 7C tax incentive for the property located at 303 E. Kensington Rd. Public Content Information Attached to this memorandum is a resolution that would grant approval of a Class 7C property tax incentive for Facet Holding LLC (Facet) for the property located at 303 E. Kensington Road. The subject property has been vacant since Bogies Restaurant officially closed over five years ago. Facet is seeking the Class 7c incentive for the entire 10,630 square foot facility. The Village has granted two other Cook County Class 7C tax incentives (Mount Prospect Ice Arena and EA Langenfeld) to attract and retain businesses. The Class 7C incentive is applicable to office and retail properties as opposed to the Class 6B which is applicable to industrial properties. The 7C incentive reduces the assessment level for qualified facilities from 25% to 10% for the first 3 years, 15% for year 4 and 20% in 5. After year 5, the assessment level returns to the full 25% for the benefitting property. The 7C incentive can also be renewed for one additional 5-year term if supported by the Village. If approved, Facet would lease the space to the Red Barn restaurant. The Red Barn would offer barbequed meats, pizza, sandwiches and craft beers. It would also provide live entertainment and a variety of bar games for their patrons. The owner/operator, DJ Harrington, is the former general manager of the Mount Prospect Bar Louie restaurant and has many years of restaurant experience. They anticipate employing 10-15 full time and 15-20 part time positions. Facet is requesting the Class 7c incentive to reduce the property taxes from $7.80 to around $3.15 per square foot for the property. Similar properties in nearby Lake and DuPage County range from $2.50 to $3.50 per square foot. Alternatives 1. Approve the resolution in support of Facet Holding LLC's application for a Cook County Class 7C tax incentive for the property located at 303 E. Kensington Rd. 2. Action at discretion of Village Board. Staff Recommendation https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login6/21/2018 BoardDocs® ProPage 2 of 2 Approve the resolution in support of Facet Holding LLC's application for a Cook County Class 7C tax incentive for the property located at 303 E. Kensington Rd. Red Barn business plan.pdf (767 KB)Red Barn application.pdf (405 KB) 7C Resolution Red Barn.pdf (108 KB)EXHIBIT A.pdf (37 KB) Administrative Content Executive Content Motion & Voting Approve the resolution in support of Facet Holding LLC's application for a Cook County Class 7C tax incentive for the property located at 303 E. Kensington Rd. Motion by Paul Hoefert, second by Michael Zadel. Final Resolution: Motion Carries Yea: William Grossi, Eleni Hatzis, Paul Hoefert, Richard Rogers, Colleen Saccotelli, Michael Zadel https://www.boarddocs.com/il/vomp/Board.nsf/Private?open&login6/21/2018 Q INEW t R OG L cn L 'L �Q N .Q 0 m M L 00 C'a cn ca N IY • L O U) U) O O O O � CU CU O CU N O � 00 O �--' U CU O ri 0 0 0 L cn O E O O C� O O Ca O DL x W E O L U O L Ca C� CU O U) U_ � U O Cl) O CU LL c: Ll 7 • cn O U 0 o �o � �., CU CU ��E � e� CU�-0cnO�0 2- 0�aa)E=0a))� �0 oa)oo E 0 � �oo-�EcEca� ca o a) 0- Ca0 CM o a) C-> O 0�-�•� O= U0 CU � A -- ca ca -0 ca cn -0 ca o cn —0;— 0 C: a Co a)cc 0 — 0 a) �,. > E'�� co p -c a-=� ca Co Co cr0� —Ococa- ~Lo`�ca�_0 CL— CU ctf 0 0 +, 0) a) � cn a) cu CD`~ a) L O -c-- -0 cu CD� a� O -0cn -p-=0 E" cn E 3� : � co a) O cu =3L `�-- (] -- a -0 q- C[) O >, E CU �, —_ CD CO co 0 C:) > v NC- :t-- E co 0-75 -E co 1� C a) . EE 0 .� cn c- a) c � co 0 �(n a)caa)��"'. �-0a o��cua—I.-, �aoo ����oaCUQ —CD 0 }' cn !E E E CO -E v0 ra 0 c o Co C }. 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Kensington Road, Mount prospect PIN(s): 03-34-200-204-0000 03-34-200-205-0000 f00; ai V COOK COUNTY ASSESSOR'S OFFICE COOK COUNTY ASSESSOR z 118 NORTH CLARK STREET, CHICAGO, IL 60602 JOSEPH B E R R I O S PHONE: 312.443, 7550 FAx: 312.603.6584 '+� M o.` V WWW.000KCOUNTYASSESSOR.COM CLASS 7C CONT1101. NUMBER ELIGIBILITY APPLICATION Carefully review the Class 7e Eligibility Bulletin before completing this Application. For assistance, please contact the Assessor's Office, Development Incentives Department (312) 603-7529. This application, a filing fee of $500.00, and supporting documentation must be Filed as follows: This application must be filed PRIOR TO the commencement of New Construction or the commencement of Substantial Rehabilitation Activities or PRIOR TO the Reoccupation of VacanllAbandoned Properly, Applicant Information Name: Anand Sheth Telephone: ( 312 ) 589-5797 Address: 23 N. Wabash Avenue City: Chicago State: IL Zip Code: 60602 Email: anand@monamiiewelry.com Contact Person (if different than the Applicant) Name: Georqe N. Reveliotis Company: Revellotis Law, P.C. Address: 1030 Hiqqins Road, Suite 101 City: Park Ridge State: IL Zip Code: 60068 Email: onrammpertvtaxationc�om _ Telephone: ( 312 ) 230 - 0160 Property Description (per PIN) If you are applying for more than three different P1Ns, please submit the additional PIN information in an attachment. Street Address: (1) 303 Kensinqton Road, Permanent Real Estate Index Number: 03-34.200-204-0000 (2) 303 Kensington Drive Permanent Real Estate Index Number: 03-34-200-205-0000 (3) Permanent Real Estate Index Number: City: Mountpr4snect _ __ State: IL Township: Wheeling Zip Codc: _ 60056 _ Existing Class: 5-17 Pagel of 8 Rovised 8%3;'2016 IdentiJlcation of Person Haring an Interest in tate Property Attach a 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. See Exhibit A Property Use General Description of Proposed Property Usage: Restaurant and Brewery Attach a detail description of the precise nature and extent of the intended use of the subject property, specifying in the case of the multiple uses the relative percentages of each use. Attach copies of materials, which explain die occupant's business, including corporate letterhead, brochures, advertising material, leases, photographs, etc. See Exhibit B Nature of Development Indicate nature of proposed development by checking the appropriate space: [ J New Construction (Read and Complete Section A) [ J Substantial Rehabilitation (Read and Complete Section A) Incentive only applied to the market value attributable to the rehabilitation jxJ Occupation of Abandoned Property (Read and Complete Section B) Page 2 of 8 MON A (NE 11 CONS TR If the pN)osed development consists of New Construction or Substantial Rehabilitation, provide the following ' ilnrmation: Estimated da of construction commencement (excluding demolition if any): Estimated date construction completion; Total redeveiopm t cost, excluding land: $ Attach copies of the following: Construction Documentation Architectural Plans Description of Improvement t be demolished or reoccupied Development Schedule Permits Financial Documentation Income Tax Statements (last three years) Recent Appraisal (for Substantial Rehabilitation �-(o�jjeco,-) Agreements with any taxing district for sharing prs Identification of Persons Having an Interest in the Property Page 3 of 8 SECTION -13 (VACANT/ABANDONED PROPERTY) AmVication ;'trust be made to Assessor prior trr reac•cupatir»t If the proposed development consists of the re -occupancy of abandoned property (property must be twelve months or more vacant), provide the following information: 1. Vacancy Information: a. How long has the property been vacant'? 5 years b, When and by whom was the subject property last occupied and used'? Bogies Ale House 2. Attach copies of the following documents: ✓ Sworn statements from persons having personal knowledge attesting to the fact and duration of vacancy and abandonment See Exhibit C ✓ Records (such as statements of utility companies), indicating that the property has been vacant and unused and the duration of such vacancy See Exhibit D ✓ Records indicating that the property was marketed for 6 continuous months See Exhibit E N/A Income Tax Statements (last tltree ))ears) Subject purchased in March of 2017, 3. If a sale has taken place: Estimated date of reoccupation: Date of purchase: Name of purchaser: Name of seller: Relationship of purchaser to seller: 06-2018 $510,000 Facel HnidIng I t': - Karnsington LLC Thp F-Ic,ntinatnn Natinnal bank, Sucessor to First Merit Bank, N.A. None Attach copies of the following documents: �a) sale contract �) recorded deed (c) assignment of beneficial interest (d) real estate transfer declaration Page 4 of 8 See Exhibit F EMPLOYMENT OPPORTUNITIES How many construction jobs will be created as a result of this development? 20 How many permanent full-time and part -tune employees do you currently employ in Cook County'? Full-time: Part-time: I -low many new permanent full-time jobs will be created as a result of this proposed development? 10-15 How many new permanent part-time jobs will be created as a result of this proposed development? 15-20 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 Iocale(i tit an unlncor1wrated area) should accompany this Application. The ordinance or re.solulion must ea7)ress1y stale that the municipali(v supports and consents to this Class 7C Application and that i1 finds Class 7C necessary fin• development to occur on the subject properly. If a resolution is unavailable at the time the application is filed, a letter from the municipality or the County Board, as the case may be, stating that a resolution or ordinance supporting the incentive has been requested may be filed with this application instead, if, at a later date, the municipality or the County Board denies the applicant's request for a resolution or ordinance, file applicant will be deemed ineligible for the Class 7C incentive, whether or not construction has begun. In all circumstances, the resolution must be submitted by the time the applicant files an "Incentive Appeal" requesting the Class Change be applied to the property. 1, the undersigned, certify that 1 have read this Application and that the statements set forth in this 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. Anand Sheth rru,r Name 05/01/2018 7AIV Applicant 1 Owner *Note: if tide to the property is held in trust or Gr a corporation or a partnership, this C lu.ss 7C F_ligihilitt' Application must he signed hr a bencfckay, rjttic•er or general partner. Page 5 of 8 INCENTIVES CLASS LIVING WAGE ORDINANCE AFFIDAVIT George N Reveliotis 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 PfN(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 11, Division 2, The Cook County Real Property Assessment Classification Ordinance, Sec.74-60 et seq., as amended 3. I have reviewed the Code of Ordinances of Cook County, Chapter 34, Article IV, Division 1 and The Cook County Living Wage Ordinance, Sec. 34-127 et seq., 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): V 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 sayet not. Agent's Signa 1030 Higgins Agent's Ma li Anand Sheth (Suite 101, Park Ridge, IL 60068 Address Applicant's Name anand@monamijewelry.com Applicant's a -mail address Subscribed and swot -n before me this day of I Signature of Notary-Pbblic Page 6 of 8 George N Reveliotis Agent's Name & Title (312) 230-0160 _ Agent's Telephone Number 23 N wabash Avenue, Chicago IL 60602 Applicant's Mailing Address EKATERINE LIAPIS OFFICIAL SEAL Notary Public, SWOOf Illinois My Commission Expires July 06, 2019 ,20� EXHIBIT A (Please type or Print) PIN(s) Common Address 03-34-200-204-0000 303 Kensn tan Road Mount Prospect, IL 60056 03-34-200-205-0000 303 Kensngton Road, Mount Prospect, IL 60056 Page 7 of 8 �I REVOCATION OR CANCF_LLA17IONAGREEM.E'NT 4 i In return for receiving the Class 7c incentive classification for the Subject property, the 1 undersigned owner(s) hereby stipulates and agrees that in the event of a voluntary cancellation of the Incentive or upon revocation, that the undersigned shall be personally liable for and shall reimburse to the County Collector an amount equal to the difference, if any, in the amount of taxes that would have been collected had the subject property been assessed without the Class 7c classification and the amount of taxes actually billed and collected upon the subject property s for the tax year in which the incentive was revoked or cancelled during which the property was being assessed with the Class 7c classification. Failure of the undersigned to make such a " reimbursement to the County Collector shall not constitute a lien upon the subject property but shall constitute an in personam liability, which may be enforced against the owners. Further, the undersigned certifies that he/she has read this Application and that the statements set forth in this Application and in the attachments hereto are true and correct, except as to 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. The undersigned further certifies that he/she has received and reviewed a copy of the COOK COUNTY LIVING WAGE ORDINANCE. I, the undersigned, hereby agree to be bound by the terms of the revocation or cancellation agreement. Signature 05/01/2018 Date Ananri Sheth Annlirant / Owner Print Name Title j *Note.- If title to 1be properly is bell in tars/ or 01 a corporation or a parinersbip, this Class 7c 1 ligibilily Applicalion musl be signed by lbe beneficiag, Ighrr andl orgeneral partner. r J Revised 8/03/16 Page 8 of 8 1 1A RESOLUTIONNO. A RESOLUTION APPROVING A CLASS7CREALESTATETAXINCENTIVEFOR THE BENEFIT OF FACET HOLDING LLC, LOCATED AT 303 KENSINGTON ROAD, MOUNT PROSPECT, ILLINOIS, PURSUANT TO THE COOK COUNTY REAL ASSESSMENT PROPERTY CLASSIFICATION ORDINANCE WHEREAS, theCookCountyBoard of Commissioners has amended the Cook CountyReal Property Assessment Classification Ordinance (hereinafter referred to as the “Ordinance”) to provide real estate tax incentives topropertyownerswho build, rehabilitate, enhance and occupy property which is located within CookCounty andwhichis usedforcommercialpurposes; and WHEREAS, TheClass7CIncentive – Commercial UrbanReliefEligibility (CURE) ofthe Ordinance(the “Class 7C Tax Incentive”) is intended to encourage commercial projects which would not be economically feasible without assistance, and is available to real estate used primarily for commercial purposes, including the buying and selling of goods and services; and WHEREAS, theVillage of Mount Prospect (hereinafter referred to as the “Village”), consistent with the Ordinance, as amended, wishes to induce commercial businesses to locate and expand in the Village by offering financial incentives in the form of property tax relief; and WHEREAS,Facet Holding LLC (hereinafter referred to as the “Owner”) is the owner of 303 E. Kensington Road, Mount Prospect, Cook County, Illinois (hereinafter referred to as “Subject Property”). The Subject Property is legally described in Exhibit A attached hereto and made a part hereof; and WHEREAS, theOwnerhas orwill apply to theOffice of the Cook County Assessor for a Class 7C Tax Incentive relative to the Subject Property; and WHEREAS, the Subject Property will, upon approval of the Class 7C Tax Incentive, be utilized by the Owner for commercial purposes, in the form of a restaurant, The Red Bar, offering food and craft beers with live entertainment and will result in substantial improvement to the Subject Property; and WHEREAS, the Village Manager of the Village of Mount Prospect has reviewed the Cook CountyIncentiveClassification Initial Questionnaire(“IC-IQ”) of the Owner, and that the four eligibility factors which must be present to demonstrate that the area is “in need of commercial development” have been satisfied by the Owner’s statements in theIC-IQ;and WHEREAS, the VillagePresidentandBoardofTrusteesofthe VillageofMountProspect, havingdulyconsidered the request oftheOwner,express their support for and consent totheClass 7C Tax IncentiveEligibilityDesignationfortheSubjectProperty,find and determinethattheuse of the Subject Property by Owner is necessary and beneficial to the local economy and finds such support andconsenttobeinthebestinterestsof the Village and its residents and property owners. NOW THEREFORE, BEITRESOLVED BY THEBOARDOF TRUSTEES OFTHE VILLAGE OF MOUNT PROSPECT, COUNTY OF COOK, STATE OF ILLINOIS, AS FOLLOWS: SECTION 1: ThePresidentandBoard of Trustees of the Village of Mount Prospect find that the Subject Property is appropriateforClass7C Tax Incentive benefits pursuant to the Ordinance, asamended; and SECTION 2: The President and Board ofTrustees furtherfinds that theClass7C Tax Incentive for the Subject Property commonly known as 303 E. Kensington Road, Mount Prospect, CookCounty,Illinois isnecessary toencouragethiscommercialprojectwhich would not be economicallyfeasiblewithoutassistance,andisnecessaryand beneficial tothelocaleconomy;and SECTION 3: Pursuant totheOrdinance,as amended, the President and BoardofTrustees approve, supportandconsent tothe Class 7C Tax Incentive application of the Owner for the Subject Property commonly knownas303 E. Kensington Road, MountProspect,CookCounty, Illinois; and SECTION 4: TheClass7C Tax Incentive,pursuantto itsterms, shall only be available to the Owner of the Subject Property for a term of five (5) years, with the possibility of renewal of one (1) additional five (5) year term, whichtheVillagewill considerat the time of Owner’s application for renewal; and SECTION 5: Owner shall provide the Village Manager of the Village of Mount Prospect, or his or her designee, verification of the costs that Owner has incurred to build, rehabilitate, enhance andoccupythe SubjectProperty,intheformofcertifiedpayrollreports,contracts,plans,orother documentation deemed required by the VillageManagerduringthe term(s) of the incentive; and SECTION 6: This Resolution shall beeffectiveimmediately upon its passageand approval, orasotherwiseprovidedbylaw. AYES: NAYES: ABSENT: PASSEDandAPPROVEDthis5thdayofJune, 2018 Arlene A. Juracek Mayor ATTEST: Karen Agoranos Village Clerk EXHIBIT A LEGAL DECSCRIPTION LOTS 1 AND 2 IN LOFT SUBDIVISION OF LOT 1 IN CHRISTIE’S SUBDIVISION AND THE EAST 140 FEET OF THE NORTH 500 FEET ALL BEING A PART OF THE NORTHEAST ¼ OF SECTION 34, TOWNSHIP 42 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY ILLINOIS PIN(S): 03-34-200-204-0000; 03-34-200-205-0000 Common Address: 303 E. Kensington Road, Mount Prospect, Cook County, Illinois 60056