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Home My WebLink About8.3 A RESOLUTION IN SUPPORT OF LIT INDUSTRIAL LIMITED'S APPLICATION FOR A RENEWAL OF THEIR COOK COUNTY CLASS 6B TAX INCENTIVE FOR THE PROPERTY LOCATED AT 1743-1759 S. LINNEMAN ROADMr�GauC �'d'+rt;�iect Subject• • SUPPORT OF LIMITED'S APPLICATION FOR A RENEWAL OF THEII COOK COUNTY CLASS 613 TAX INCENTIVE FOR THE PROPERTY LOCATED ROAD I Meeting Fiscal Impact Dollar Amount Budget Source Category Type Information October 5, 2021 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - false 101ATM -11R)4►1 X Action Item Attached to this memorandum is a resolution that would grant approval of a renewal of a Class 6b property tax incentive for LIT Industrial Limited (LIT) for their property located at 1743-1759 S. Linneman Road. The request is a first renewal of their Class 6b that would enable LIT to retain and attract tenants for this 237,767 square foot industrial building. 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. The building is currently home to two tenants, 1 -800 -PACK -RAT and TEI Logistics, and has one vacancy. When fully occupied, the property is home to approximately 120 full time employees who support local restaurants and local businesses on a daily basis. LIT has indicated that the current tenants have expressed concerns with the expiring incentive as they discuss lease extensions for their space. 1 LIT is requesting the Class 6b extension 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 in support of LIT Industrial Limited's application for the renewal of their Cook County Class 6b tax incentive for the property located at 1743-1759 S. Linneman Road. 2. Discretion of the Village Board. Staff Recommendation Staff recommends that the Village Board approve the resolution in support of LIT Industrial Limited's application for the renewal of their Cook County Class 6b tax incentive for the property located at 1743-1759 S. Linneman Road. ATTACHMENTS: 1743 Linneman Briarwood B 6b Tax Incentive Letter.pdf 1743 Linneman 6b application.pdf 2 lull (()0) T T August 24, 2021 REVISED September 22, 2021 Mr. William Cooney 50 S. Emerson Street, Mount Prospect, IL 60056 Re: Request for Renewal of class 6b Incentive 1743-1759 S. Linneman Road Mount Prospect, Illinois 60065 Elk Grove Township Assessor's Incentive Control # 61984 Property Index Number: 08-23-202-050-0000 Dear Mr. Cooney: On behalf of ownership of the subject property, enclosed for your review is our formal request for renewal of the existing Class 6b incentive. The renewal of the 6b property tax incentive is critical to the ownership's ability to remain competitive, attract tenants and re-establish occupancy at the subject. The existing Class 6b is in its 10"h year and is scheduled to begin "ramping" up in 2022. Currently, and in the wake of the COVID-19 pandemic, the subject property has suffered vacancy and ownership is aggressively seeking to re -lease the property. Of paramount importance to prospective tenants, is a competitive and predictable real estate tax burden that allows the owner to compete in the open market. In the current Cook County tax environment, where most similar industrial buildings in the area are assessed at the 6b level of assessment, being able to compete by offering similar rents is critical to maintaining this balance. Without the incentive, ownership simply cannot offer prospective tenants similar lease terms necessary to complete with owners with the 6b in place. The real estate tax expense is one of the largest line item expenses for landlords, and the absence of an incentive in a market where competitive property does have the incentive, places the owners at a severe market disadvantage and substantially increase the likelihood the subject property will remain partially vacant. When full or close to full occupancy, however, the subject will be assessed and taxed as full, thus maximizing the tax revenues to Cook County, as opposed to receiving annual temporary tax abatements for vacant or partially vacant status. Moreover, the subject will host approximately 3 tenants, and when fully occupied, will be home to approximately 120 employees. The employment benefits of maintaining good jobs in Mount Prospect by leasing this space on competitive terms with credit worthy tenants, are self-evident. Each of these employees will routinely pay local taxes and will frequent the surrounding local 8755 W. Higgins Road, Suite 700, Chicago, IL 60631 Tel (630) 963-4547 3 restaurants, gas stations, and various other local businesses thus benefitting the local economy in Mount Prospect. The subject property consists of a 14 -year-old, multi -tenant industrial building containing approximately 237,350 square feet. The improvement is located on a 614,194 square foot site. The building includes 9,000 square feet (4%) of office space and has 24 exterior truck docks and 2 drive through truck doors. The building has an ESFR wet sprinkler system and 30 - foot clear ceilings and is in average condition for its age. The subject is a multi -tenant building divided into 3 units ranging in size from 77,911 to 80,739 square feet with an average size of 79,117 square feet. The vacancy at the subject would be an attractive space, but only if the real estate taxes were in line with similar competitive properties. While the subject is currently suffering vacancy, a large reason for its success over the years has been the benefit of reasonable and competitive property taxes, a direct benefit of the Class 6b in place. Currently there are two tenants in the building 1800PACKRAT is one of the tenants that occupies 77,911 square feet and 32.83% share of the building, their lease specifies that Landlord responsibility is to ensure real estate taxes are contested by appropriate legal proceedings of the amount and validity. Tenant has expressed concerns of high taxes and is considering not renewing their lease if we do not successfully archive Class 6b incentive. The second tenant in the building TEI Logistics occupies 78,700 square feet and 33.16% share of the building, this tenant chose to lease this space due to having the Class 6b in place and has expressed that if ownership fails to successfully achieve Class 6b renewal they will definitely not renew their lease. The owner believes it can release the subject property to full or close to full capacity, if the 6b remains in place, giving potential tenants the peace of mind of knowing the property taxes will remain competitive and not escalate out of control, as has been the case in recent years throughout Cook County. Without the 6b in place, the owners will be at a severe competitive disadvantage. Absent the ability to offer competitive taxes, the likelihood that the owners can find a substitute tenant of similar quality is severely diminished, if not eliminated. In turn the jobs and economic benefits those jobs will result in, would be lost. On behalf of my client, thank you for your consideration of this application. My client is also willing to personally answer any questions that you or the Village Board members might have regarding this application; let me know and we can schedule a meeting to discuss. Very truly yours Maggie Amaya Vice President/Sr. General Manager Jones Lang LaSalle Americas, Inc., as Agent For LIT Industrial Limited Partnership Cc: Briarwood A Real Estate Tax File /ma I I' I"'(l('$ ', „�,��I"V�'TvII I, I"d;::.)'IJI A I�j?II,I`''sr ,r,1 4 Brian P. Forde August 16, 2021 Ms. Jeanette Thomas Mr. Dominic Spalla Incentives Department Office of the Cook County Assessor 118 North Clark Street, Third Floor Chicago, Illinois 60602 Re: Class 6B Renewal Application & Filing Fee 1743-1759 S. Linneman Rd. Elk Grove Township PIN 08-23-202-050-0000 Control No. 61984 Dear Ms. Thomas: Enclosed please find the Class 6B Renewal Application for the above referenced property. Also enclosed, please find a check in the amount of $500.00 for the filing fee. The taxpayer has already requested and anticipates a formal resolution to issue from the local authorities approving and supporting Class 6b renewal in third quarter of 2021. The taxpayer will transmit a copy to the Assessor as soon as we receive it. Very truly yours, I: '&° — Brian P. Forde Ad oh^ Sip i r, a rl,S,',d on NwrliQ, 'RL�o1ki,06dQrftdpY I EI;-QqcV 1214207 5 �. COOK COUNTY ASSESSOR'S CIFFICE COOK COUNTY ASSESSOR 118 NORTH CLARK STREET, CHIGAGO,.1L 66602 W F R I T Z I A E G 1 PHONE: 3.12.443.7550 FAX: 312:6(}3.6884 WtMMCOUKCOUNTYASSESSOR.GOM CLASS 613/7I$ Control Number RENEWAL APPLICATION 1sa�� Es_ . _ . A certified copy of the resolution or ordinance obtained from the municipality in which the real estate is located, orf hook County Board of Commissioners if located in an unincorporated area, m t"ac P y this Renewal Application, This application, resolution and a filing fee o 500.00 mu be filed. For assistance in preparing this Renewal Application, please c t. odic County Assessor's Office Development Incentives Department at (312) 603=529. 1, Identification of Applicant Name:- Telephone: { ) ........ Address: City, State: Zip Code: Email Address: A gnt/Re resentative moi# an Y 1 Name: Maggie Ama _�.�........�....W.._�w.. Telephone: (773 }.....�32-116 �....�_...._...................... Address: 8755 W. Higgins Road Suite 700 Ci.._State; -Chicago, Illinois _._w ....._.._......_. _.....__ _......w_. Zipm Code60 ..._ 631 .. .._ ..__. _._w..........._ Email Address: Maggie.Amaya@am.jll.com 11. Deseti tion of SuN4qqtLRPrqRSAy Street address: 1743-1759 S. Linneman Rd, City, State: Mount Prospect, Illinois_...._ Zip...... Code:60056 ....__. .._ .�...._... ....... ._ .,.w __........ Permanent Real Estate Index Number (s): 08-23-202-050-0000 Township: Elk Grove OFFICE OF ... Cl w� AUG 16 &1 INCEINTMESDNEPT. Ij 111. 'Identification of Persons or Entities Ravin Attach a current and complete list of all owners, developers, occupants and other interested terested parries (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 descript , ion 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. Mature .of�Devel�omet V1. VII Indicate the nature of the original development receiving the Glass 6Bf7/8 designation New Construction Substantial Rehabilitation Occupation of Abandoned Property - No Special Circumstance Occupation of Abandoned Property -With Special Circumstance Ernoloyment How many permanent full-time and part-time employees do you now employ? On -Site: Full-time: 0 Part-time.- 0 In Cook County: Full-time:..._ 0 Part-time: . 0 Local A royal. 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 66/7/8 Renewal and has determined that the industrial use of the property is necessary and beneficial to the local economy. 2 7 i Maggie Amaya the undersigned, certify that l 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. �Sign�ature�.�.�..��..�'�.�� Maggie Amaya Print Name '.. ' Vice President and General Manager Title 3 3/11/2021 Date 02/1 aW20