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HomeMy WebLinkAbout8.1 A RESOLUTION SUPPORTING AVERY DENNISON CORPORATION'S APPLICATION FOR A COOK COUNTY CLASS 6B TAX INCENTIVE FOR THE PROPERTY LOCATED AT 902 FEEHANVILLE DRIVE.Mr�GauC �'d'+rt;�iect Item Cover Page Subject A RESOLUTIONTDENNISON CORPORATION'SAPPLICATION FOR A COOK CLASSCOUNTY TAX INCENTIVE THE PROPERTYLOCATED AT 902 FEE LL I. Meeting November 2, 2021 - REGULAR MEETING OF THE MOUNT PROSPECT VILLAGE BOARD - Fiscal Impact false Dollar Amount Budget Source Category NEW BUSINESS Type Action Item Information Attached to this memorandum is a resolution that would grant approval of a Class 6b property tax incentive for Avery Dennison Corporation (ADC) for the property located at 902 Feehanville Drive in Kensington Business Center. ADC has been located in Mount Prospect for several decades and is looking to expand their 491853 square foot building by 13,825 square feet and renovate 8,175 of their the existing facility. ADC intends to invest over $3.4 million on these improvements to their Mount Prospect facility which serves as their global headquarters. 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. ADC currently employs 40 full time individuals consisting of management, administrative support and skilled technicians. They anticipate employing over 7C full time positions once they have fully expanded into the new facility. They are a manufacturer of retroreflective products that are used throughout the world tc 1 improve traffic safety and assist first responders. ADC is requesting the Class 6b incentive to reduce their taxes for the property to remain competitive with nearby Lake and DuPage Counties. Alternatives 1. Approve the resolution in support of ADC's application for a Cook County Class 6b tax incentive for the property located at 902 Feehanville Drive. 2. Discretion of the Village Board. Staff Recommendation Staff recommends that the Village Board approve the resolution in support of Avery Dennison Corporation's application for a Cook County Class 6b tax incentive for the property located at 902 Feehanville Drive. ATTACHMENTS: 902_Feehanvil le_Drive_-_Complete_6b_Resolution_Requ est. pdf 6b Avery Dennison Resolution.pdf 2 M THE LAW OFFICES 4OF EISTON & TSANTILI[S A PROFESSIONAL CORPORATI40N 33 NORTH LASALLE STREET, 28TH FLOOR CHICAGO, ILLINOIS 60602 BRIAN P. LISTON (312) 580-1594 PETER TSANTILIS (312) 604-3808 FACSIMILE (312)580-1592 October 8, 2021 VIA EMAIL William J. Cooney Director of Community Development Village of Mount Prospect 50 S. Emerson Street Mount Prospect, IL 60056 RE: Class 6b Resolution Request Avery Dennison Corporation 902 Feehanville Drive Mount Prospect, IL 60056 PIN: 03-35-104-029-0000 Dear William: Avery Dennison Corporation (the "Applicant") and its assigns, is the owner of the above -referenced property (the "Subject Property"), and is requesting a Resolution from the Village of Mount Prospect supporting and consenting to a Class 6b Tax Incentive for the Subject Property based on New Construction & Substantial Rehabilitation. The Subject Property currently consists of a 36 year-old industrial building that is approximately 49,853 square feet, sited on approximately 158,936 square feet of land. Avery Dennison Corporation (the "Occupant") currently occupies the Subject Property, and uses the site for its growing manufacturing, testing, and engineering business of signature reflective sheeting products. Specifically, the Occupant manufactures retroreflective sheeting using various machine processes. The material is then inspected for defects, and shipped to a plant that will cut the material for the right width and length for its ultimate use. The Applicant plans to renovate 8,175 square feet of the existing structure and construct a 13,825 square foot addition thereby converting Subject Property into a larger facility than currently used by the Occupant which will allow it to continue its growth and to hire additional employees as it expands its operations. Background of the Occupant For nearly one hundred years, Avery Dennison Corporation has been making highway and street safety solutions with bright prismatic signs, pioneering the way of innovative traffic safety. It is one of the preferred suppliers to professional sign shops worldwide while servicing the traffic safety market with one of the industry's most comprehensive range of reflective sheeting. The company has a rich history in the early development of America's infrastructure. Between the 1920s and 1930s, the company developed the first patents for full cube -corner reflectors for use in autornobiles and signs. This led to the first installment of glass prismatic elements into the standard use wooden signs. Ford Motors even incorporated the Stimsonite prismatic tail light lenses into its Model A automobile. In the latter half of the twentieth century, the company continued to expand its operations to keep up with the modernization of America's automobile related infrastructure. The company's "button" reflective units became widely used on highway signs. It also produced the first engineer -grade beaded sheeting, and It THE JAW OFFICES OF LiSTON & TSANTILIS developed the Stimsonite 4200, which was the first omnidirectional prismatic material for permanent traffic signage. At the dawn of the twenty-first century, Avery Dennison and Stimsonite merged operations, combining glass -bead and prismatic technologies. In the past decade, the company has introduced the TrafficJet Print System, which is specification -compliant and a leader in digital traffic sign printing for the traffic industry. Additionally, the company launched its VisiPlex prismatic vinyl sheeting for the production of emergency vehicle graphics. Avery Dennison plans to further innovate in its industry by acquiring and expanding the Subject Property. Occupant's Benefit to the Community at Lame For more than 70 years, Avery Dennison has pioneered the development and application of retroreflective technology on a wide range of safety devices worldwide from its three manufacturing plants in the Chicagoland area. It is only one of three major US companies with this technology and manufacturing capability, serving first responders who rely daily on reflective sheeting and tape to ensure their safety during their service. One of the core mission of the company is to develop products that will continuously strive to reduce the number car -related fatalities (which total about 36,000 per year). The company works in tandem with local transportation agencies and public works departments to achieve this ambitious objective. During the COVID- 19 Pandemic, Avery Dennison's products became more critical as local government agencies incorporated reflective sheeting and signs to be used for temporary detours and drive- thru testing facilities. The company's manufacturing operations will continue to meet the current crisis and those in the future. Specifically, reflective tapes used on long-haul freight and local delivery fleets have a proven record of significantly reducing railroad and trucking accidents, leading to the uninterrupted flow of goods and services, such as food, essential healthcare products, medical and pharmaceutical products, and logistics and supply chain services and products. Also, its high -visibility vehicle markings are an integral part of emergency fleets around the world, including police vehicles, fire trucks, and ambulances. Because these emergency response vehicles are often in unexpected places at any time of the day or night, visibility is a crucial factor to facilitate their prompt response. Avery Dennison is also the primary supplier of the translucent reflective signage product used on nearly every commercial airport in the US, which in turn maintains the integrity of this supply chain to ensure the safety of air travel. Moreover, the company's license plate material, which incorporates a variety of mandated security features, plays an important role in enabling government agencies around the world to regulate the legal renewal of existing fleets, and licensing of new ones, while preserving law and order by avoiding unforeseen incidents of theft and misuse. Subiect Property Improvements and Job Creation The Subject Property currently operates as the global headquarters of Avery Dennison Corporation. In the event that a Class 6b Tax Incentive is granted, the Applicant plans to spend approximately $3,407,900 to make various improvements, of which $2,586,200 will be spent to construct the new 13,825 square foot addition to the Subject Property to accommodate the Occupant's expansion. Once improvements are finished, the Occupant plans to occupy the entire Subject Property. The Occupant currently employs 66 full-time employees, including 40 in Cook County at the Subject Property. In the event the Class 6b Tax Incentive is granted, the Occupant plans to hire thirty-three (33) new employees THE LAW OFFICES OF LISTON & TSANTILIS over the course of the incentive, and will look to qualified Mount Prospect residents for its hiring. The Occupant employs workers with a high technological skill set, and compensates them well above the requirements of the Living Wage Ordinance, with wages in the range of $25-$30 per hour. Also, the newly constructed addition will result in approximately twenty-five to fifty (25-50) temporary construction jobs. Real Estate Tax and Economic Analysis After the completion of the scheduled new construction, the Subject Property is projected to have a market value of approximately $6,486,196, which would generate an estimated $4,702,686 in total taxes over the life of the Class 6b Tax Incentive (approximately $391,891 per year). Without the incentive and at full vacancy, the Subject Property would generate a total of only $1,539,060 in total taxes (approximately $128,255 per year) over the life of the incentive. Therefore, should the Class 6b Tax Incentive be approved, the Subject Property would generate an additional $3,163,626 in real estate taxes over the life of the Class 6b Tax Incentive. Please see the attached "12 Year Tax Comparison Chart" for more details. In addition to increased property tax revenues, the expansion of the Occupant's operation at the Subject Property will significantly benefit the Village's community and economy. The Occupant's employees will frequent Village restaurants, gas stations, stores, and more. The Occupant's eventual 73 employees are projected to contribute an additional $309,338 per year to the Village's economy. Please see the attached "Employee Economic Impact Estimate." "But -For" Condition Statement Without the assistance from the Class 6b Tax Incentive, the Applicant will not construct the new addition, nor rehabilitate the existing structure. The Applicant has determined that the without the incentive, the heavy Cook County property tax burden will not make the project feasible. Furthermore, without the Class 6b Tax Incentive, the Occupant will not renew its lease in 2022; the increased lease rate due to the high property taxes will require it to bring its operations to a neighboring county, state, or community. In the event the Occupant does not renew its lease, the Subject Property will become vacant and unused, thereby lowering its total taxes. This would not only affect the total revenue that the property will generate, but it will result in a very established, reputable company with high quality jobs to leave the Village and continue its operations outside of Cook County. Conclusion Based on the foregoing, the Applicant requests that the Village of Mount Prospect review its Class 6b Tax Incentive request and approve a Resolution supporting and consenting to a Class 6b Tax Incentive for the Subject Property based on New Construction & Substantial Rehabilitation. Should you need any additional documentation or have any questions or concerns, do not hesitate to contact me at (312) 604-3898 or via email at mrogers@ltlawchicago.com. Respectfully Submitted, Mark Rogers, Esq. Encls. R COOK COUNTY ASSESSOR FRITZ KAEGI UIN COOK COUNTY ASSESSOR'S OFFICE 118 NORTH CLARK STREET, CHICAGO, IL 60602 PHONE: 312.443.7550 FAX: 312.603.6584 WWW.COOKCOUNTYASSESSOR.COM CLASS 6B ELIGIBILITY APPLICATION Carefully review the Class 6B 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 (except drawings and surveys) must be filed as follows: This application must be filed PRIOR TO the commencement of New Construction or PRIOR TO the commencement of Substantial Rehabilitation Activities or PRIOR TO the commencement of Reoccupation of Abandoned Property. Applicant Information Name: Avery Dennison Corporation, and its assigns Telephone: ( ) Company: Address: 902 Feehanville Drive City: Mt. Prospect State: IL Zip Code: 60056 Email: sandeep.kottarath!kAverydennison.com Contact Person (if different than the Applicant) Name: Sandeep Kottarath Telephone: (5 13) 237-7588 Company: Avery Dennison Corporation Address: 902 Feehanville Drive City: Mt. Prospect State: IL Zip Code: 60056 Email: sandeep.kottarathAAverydennison.com Property Description (per PIN) If you are applying for more than three different PINs, please submit the additional PIN information in an attachment. Street Address: (1) 902 Feehanville Drive Permanent Real Estate Index Number: 03-35-104-029-0000 (2 Permanent Real Estate Index Number: (3) Permanent Real Estate Index Number: City: Mount Prospect State: IL Township: Wheeling Existing Class: Zip Code: 60056 Attach legal description, site dimensions and square footage and building dimensions and square footage. 6 Identification of Person Having an Interest in the 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. Industrial Use 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. Include copies of materials, which explain the occupant's business, including corporate letterhead, brochures, advertising material, leases, photographs, etc. Nature of Development Indicate nature of proposed development by checking the appropriate space: [x ] New Construction (Read and Complete Section A) [x ] Substantial Rehabilitation (Read and Complete Section A) Incentive only applied to the market value attributable to the rehabilitation [ ] Occupation of Abandoned Property - No Special Circumstance (Read and Complete Section B) [ ] Occupation of Abandoned Property - With Special Circumstance (Read and Complete Section C) [ ] Occupation of Abandoned Property - (TEERM Supplemental Application) (Read and Complete Section C) [ ] Occupation of Abandoned Property - (CEERM Supplemental Application) (Read and Complete Section C) SECTIONA (NEW CONSTRUCTION/SUBSTANTIAL REHABILITATION) If the proposed development consists of New Construction or Substantial Rehabilitation, provide the following information: Estimated date of construction commencement (excluding demolition, if any): March 2022 Estimated date of construction completion: December 2022 Attach copies of the following: 1. Specific description of the proposed New Construction or Substantial Rehabilitation 2. Current Plat of Survey for subject property 3. 1" floor plan or schematic drawings 4. Building permits, wrecking permits and occupancy permits (including date of issuance) 5. Complete description of the cost and extent of the Substantial Rehabilitation or New Construction (including such items as contracts, itemized statements of all direct and indirect costs, contractor's affidavits, etc) 7 SECTIONB (ABANDONED PROPERTY WITHNO SPECIAL CIRCUMSTANCE) If the proposed development consists of the reoccupation of abandoned property, purchased for value, complete (1) and (2) below: 1. Was the subject property vacant and unused for at least 24 continuous months prior to the purchase for value? [ ] YES [ ] NO When and by whom was the subject property last occupied prior to the purchase for value? Attach copies of the following documents: (a) Sworn statements from person having personal knowledge attesting to the fact and the duration of vacancy and abandonment (b) Information (such as statements of utility companies) which demonstrate that the property was vacant and unused and indicate duration of such vacancy 2. Application must be made to the Assessor prior to occupation: Estimated date of reoccupation: Date of Purchase: Name of purchaser: Name of seller: Relationship of purchaser to seller: Attach copies of the following documents: (a) Sale Contract (b) Closing Statement (c) Recorded Deed (d) Assignment of Beneficial Interest (e) Real Estate Transfer Declaration 0 SECTION C (SPECIAL CIRCUMSTANCES If the applicant is seeking special circumstances to establish that the property was abandoned for purposes of the Incentive where there was a purchase for value, but the period of abandonment prior to purchase was less than 24 months, complete section (1). If the applicant is seeking special circumstances to establish that the property was abandoned for purposes of the Incentive where there was no purchase for value, but the period of abandonment prior to the application 24 continuous months or greater, complete section (2). If the applicant is seeking special circumstances to establish that the property was abandoned for purposes of the Incentive where there was no purchase for value, but the period of abandonment prior to the application was greater than 12 continuous months and less than 24 continuous month, complete section (2) and the TEERM Supplemental Application. If the applicant is seeking special circumstances to establish that the property was abandoned for purposes of the Incentive where there was no purchase for value, but the period of abandonment prior to the application was greater than 3 continuous months and applicant will create or maintain at least 250 jobs for employees at the subject location, complete section (2) and the CEERM Supplemental Application. 1. How long was the period of abandonment prior to the purchase for value? When and by whom was the subject property last occupied prior to the purchase for value? Attach copies of the following documents: (a) Sworn statements from persons having personal knowledge attesting to the fact and the duration of the vacancy and abandonment (b) Information (such as statements of utility companies) which demonstrate that the property was vacant and unused and indicate duration of vacancy (c) Include the finding of special circumstances supporting "abandonment" as determined by the municipality, or the County Board, if located in an unincorporated area. Also include the ordinance or resolution from the Board of Commissioners of Cook County stating its approval for less than 24 -month abandonment period. Application must be made to the Assessor prior to the commencement of reoccupation of the abandoned property. Estimated date of Reoccupation: Date of purchase: Name of purchaser: Name of seller: Relationship of purchaser to seller: Attach copies of the following documents: (a) Sale Contract (b) Closing Statement (c) Recorded Deed (d) Assignment of Beneficial Interest (e) Real Estate Transfer Declaration 0 2. How long has the subject property been unused? [ ] 24 or greater continuous months (Eligible for Special Circumstance) [ ] 12 continuous months but less than 24 continuous months (Eligible for Special Circumstance under TEERM) - Complete TEERM Supplemental Application [ ] 3 continuous months and maintain/create 250 employee jobs (Eligible for Special Circumstance under CEERM) - Complete CEERM Supplemental Application [ ] Not Eligible for Special Circumstance if No purchase and less than 12 continuous months vacant, or not a CEERM When and by whom was the subject property last occupied prior to the filing of this application? Attach copies of the following documents: (a) Sworn statements from persons having personal knowledge attesting to the fact and the duration of the vacancy and abandonment (b) Information (such as statements of utility companies) which demonstrate that the property was vacant and unused and indicate duration of vacancy (c) Include the finding of special circumstances supporting "abandonment" as determined by the municipality, or the County Board, if located in an unincorporated area. Also include the ordinance or resolution from the Board of Commissioners of Cook County stating its approval for lack of a purchase for value. Application must be made to Assessor prior to the commencement of reoccupation of the abandoned property. Estimated date of reoccupation: 10 TEERM SUPPLEMENTAL APPLICATION (This form will ONLY be utilized for applicants who specifically elect for TEERM) This supplemental eligibility application is for properties that have been abandoned (due to special circumstances) for at least 12 continuous months and less than 24 continuous months with no purchase taking place. Under the TEERMProgram, qualing industrial real estate would be eligible for the Class 6B level of assessment from the date of substantial re -occupancy of the abandoned property. Properties receiving Class 6B will be assessed at 10% of market value for the first 10 years, 15% in the 11th year and 20% in the 12th year. The terms of this program are Not Renewable. I applicant/representative hereby specifically elect to submit this Supplemental Application for the TEERM program. Further affiant sayeth not. Agent's Signature Agent's Mailing Address Applicant's Name Agent's Name & Title Agent's Telephone Number Applicant's Mailing Address Applicant's e-mail address Subscribed and sworn before me this day of , 20 Signature of Notary Public 11 CEERM SUPPLEMENTAL APPLICATION (This form will ONLY be utilized for applicants who specifically elect for CEERM) This supplemental eligibility application is for properties that have been abandoned (due to special circumstances) where there has been no purchase for value and the buildings and other structures have been vacant and unused for at least three continuous months and applicant has provided sufficient documentation to establish that such applicant will create or maintain at least 250 jobs for employees at the subject location. The CEERM Program shall be limited to the party who is the initial applicant of the Class 6B Incentive under the CEERM Program and the subject of the municipal Resolution or Ordinance. Under the CEERMProgram, qualifying industrial real estate would be eligible for the Class 6B level of assessment from the date of substantial re -occupancy of the abandoned property. Properties receiving the Class 6B will be assessed at 10% of market value for thefirst first 10 years, 15% in the 11th year and 20% in the 12th year. The terms of this program are Not Renewable. licant/representative hereby specifically elect to submit this Supplemental Application for the CEERM program. Further affiant sayeth not. Agent's Signature Agent's Mailing Address Applicant's Name Agent's Name & Title Agent's Telephone Number Applicant's Mailing Address Applicant's e-mail address Subscribed and sworn before me this day of 120 Signature of Notary Public 12 EMPLOYMENT OPPORTUNITIES How many construction jobs will be created or maintained as a result of this development? Approx. 25-50 How many new permanent full-time and part-time employees do you now employ in Cook County? Full-time: N/A Part-time: N/A How many new permanent part-time jobs will be created as a result of this proposed development? TBD How many new permanent full-time jobs will be created as a result of this proposed development? Occupant currently employs 40 full-time individuals and will look to add 33 additional positions over the next ten (10) years. 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) should accompany this Application. The ordinance or resolution must expressly state that the municipality supports and consents to this Class 6B Application and that it finds Class 6B necessary for development to occur on the subject property. 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 the applicant is seeking to apply based on the reoccupation of abandoned property and will be seeking a finding of "special circumstances" from the municipality, in addition to obtaining a letter from the municipality confirming that a resolution or ordinance supporting the incentive has been requested, the applicant must file a letter from the County Board confirming that a resolution validating a municipal finding of special circumstances has been requested. If, at a later date, the municipality or the County Board denies the applicant's request for a resolution or ordinance, the applicant will be deemed ineligible for the Class 6B incentive, whether or not construction has begun. In all circumstances, the resolution must be submitted by the time the applicant files an "Incentive Appeal". I, the undersigned, certify that I 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. 10/7/2021 Signature Sandeep Kottarath Print Name Date Director Title 0310512021 13 Legal Description, Site and Building Square Footage 902 Feehanville Drive, Mount Prospect, Illinois 60056 PIN: 03-35-104-029-0000 The Subject Property currently consists of a 36 tear -old industrial building that is approximately 49,853 square feet, sited on approximately 158,936 square feet of land. Avery Dennison Corporation (the "Applicant") currently occupies the Subject Property, and uses the site for its growing manufacturing, testing, and engineering business of signature reflective sheeting products. Specifically, the Occupant manufactures retroreflective sheeting using various machine processes. The Applicant plans to renovate 8,175 square feet of the existing structure and construct a 13,825 square foot addition thereby converting Subject Property into a larger facility than currently used by the Occupant which will allow it to continue its growth and to hire additional employees as it expands its operations. Attached hereto Blease find: • Legal description • Aerial of Subject Property • Street View of the Subject Property 14 Legal Description Lot 307 in Kensington Center -Resubdivision VIII, being a Resubdivision of Lots 303, 305, and 307 in Kensington Center -Phase Three -A, in part of the Northwest'/4 of Section 35, Township 42 North, Range 11, East of the Third Principal Meridian, as per Plat recorded June 22, 1982, as document number 26268098, in Cook County, Illinois. Permanent Index Number: 03-35-104-029-0000 Common Address: 902 Feehanville Drive, Mount Prospect, IL 60056 15 Cook County CookViewer October 8, 2021 1:1,000 0 0.0075 0.015 0.03 mi 0 0.0125 0.025 0.05 km Cook County GIS Dept Cook County GIS Department 16 92019 Cook County. All Cook County geospatial data and maps are copyrighted. All materials appearing on the web site are transmitted without warranty ofany kind and are subject totheterms ofthe disclaimer. Cook County CookViewer October 8, 2021 1:2,083 0 0.0175 0.035 0.07 mi 0 0.0275 0.055 0.11 km Cook County GIS Dept Cook County GIS Department 17 92019 Cook County. All Cook County geospatial data and maps are copyrighted. All materials appearing on the web site are transmitted without warranty ofany kind and are subject totheterms ofthe disclaimer. �i '�”' �i Identification of Persons Having an Interest in the Property 902 Feehanville Drive Mount Prospect, IL 60056 PIN: 03-35-104-029-0000 Applicant: Avery Dennison Corporation Avery Dennison Corporation - 100% Ownership Occupant: Avery Dennison Corporation The Applicant plans to renovate 8,175 square feet of the existing structure and construct a 13,825 square foot addition thereby converting Subject Property into a larger facility than currently used by the Applicant which will allow it to continue its growth and to hire additional employees as it expands its operations. 20 Industrial Use 902 Feehanville Drive, Mount Prospect, Illinois 60056 PIN: 03-35-104-029-0000 The Applicant plans to renovate 8,175 square feet of the existing structure and construct a 13,825 square foot addition thereby converting Subject Property into a larger facility than currently used by the Occupant which will allow it to continue its growth and to hire additional employees as it expands its operations. For nearly one hundred years, Avery Dennison Corporation has been making highway and street safety solutions with bright prismatic signs, pioneering the way of innovative traffic safety. It is one of the preferred suppliers to professional sign shops worldwide while servicing the traffic safety market with one of the industry's most comprehensive range of reflective sheeting. The company has a rich history in the early development of America's infrastructure. Between the 1920s and 1930s, the company developed the first patents for full cube -corner reflectors for use in automobiles and signs. This led to the first installment of glass prismatic elements into the standard use wooden signs. Ford Motors even incorporated the Stimsonite prismatic tail light lenses into its Model A automobile. In the latter half of the twentieth century, the company continued to expand its operations to keep up with the modernization of America's automobile related infrastructure. The company's "button" reflective units became widely used on highway signs. It also produced the first engineer -grade beaded sheeting, and developed the Stimsonite 4200, which was the first omnidirectional prismatic material for permanent traffic signage. At the dawn of the twenty-first century, Avery Dennison and Stimsonite merged operations, combining glass -bead and prismatic technologies. In the past decade, the company has introduced the TrafficJet Print System, which is specification -compliant and a leader in digital traffic sign printing for the traffic industry. Additionally, the company launched its VisiPlex prismatic vinyl sheeting for the production of emergency vehicle graphics. Avery Dennison plans to further innovate in its industry by acquiring and expanding the Subject Property. Once improvements are finished, the Occupant plans to occupy the entire Subject Property. The Occupant currently employs 66 full-time employees, including 40 in Cook County at the Subject Property. In the event the Class 6b Tax Incentive is granted, the Occupant plans to hire thirty-three (33) new employees over the course of the incentive, and will look to qualified Mount Prospect residents for its hiring. The Occupant employs workers with a high technological skill set, and compensates them well above the requirements of the Living Wage Ordinance, with wages in the range of S25 -S30 per hour. 21 Employment Opportunities 902 Feehanville Drive, Mount Prospect, Illinois 60056 PIN: 03-35-104-029-0000 The Subject Property currently consists of a 36 year-old industrial building that is approximately 49,853 square feet, sited on approximately 158,936 square feet of land. Avery Dennison Corporation (the "Occupant") currently occupies the Subject Property, and uses the site for its growing manufacturing, testing, and engineering business of signature reflective sheeting products. Specifically, the Occupant manufactures retroreflective sheeting using various machine processes. The material is then inspected for defects, and shipped to a plant that will cut the material for the right width and length for its ultimate use. The Applicant plans to renovate 8,175 square feet of the existing structure and construct a 13,825 square foot addition thereby converting Subject Property into a larger facility than currently used by the Occupant which will allow it to continue its growth and to hire additional employees as it expands its operations. The Subject Property currently operates as the global headquarters of Avery Dennison Corporation. In the event that a Class 6b Tax Incentive is granted, the Applicant plans to spend approximately $3,407,900 to make various improvements, of which $2,586,200 will be spent to construct the new 13,825 square foot addition to the Subject Property to accommodate the Occupant's expansion. Once improvements are finished, the Occupant plans to occupy the entire Subject Property. The Occupant currently employs 66 full-time employees, including 40 in Cook County at the Subject Property. In the event the Class 6b Tax Incentive is granted, the Occupant plans to hire thirty-three (33) new employees over the course of the incentive, and will look to qualified Mount Prospect residents for its hiring. The Occupant employs workers with a high technological skill set, and compensates them well above the requirements of the Living Wage Ordinance, with wages in the range of $25-$30 per hour. Also, the newly constructed addition will result in approximately twenty-five to fifty (25-50) temporary construction jobs. In addition to increased property tax revenues, the expansion of the Occupant's operation at the Subject Property will significantly benefit the Village's community and economy. The Occupant's employees will frequent Village restaurants, gas stations, stores, and more. The Occupant's eventual 73 employees are projected to contribute an additional $309,338 per year to the Village's economy. 22 r�c� Employee Economic Impact Purchase Emp. % Exp. Week Weeks Total Lunch 73 55% $55 50 $110,413 Grocer 73 30% $50 50 $54,750 Consumer Goods 73 25% $35 50 $31,938 Entertainment 73 15% $55 50 $30,113 Auto -Gas 73 75% $30 1 50 1 $82,125 TOTAL I 1 1 1$309,338 r�c� Potential Growth & Property Improvements 902 Feehanville Drive, Mount Prospect, Illinois 60056 PIN: 03-35-104-029-0000 Avery Dennison Corporation (the "Applicant") and its assigns, is the owner of the above - referenced property (the "Subject Property"), and is requesting a Resolution from the Village of Mount Prospect supporting and consenting to a Class 6b Tax Incentive for the Subject Property based on New Construction & Substantial Rehabilitation. The Subject Property currently consists of a 36 year-old industrial building that is approximately 49,853 square feet, sited on approximately 158,936 square feet of land. Avery Dennison Corporation (the "Occupant") currently occupies the Subject Property, and uses the site for its growing manufacturing, testing, and engineering business of signature reflective sheeting products. Specifically, the Occupant manufactures retroreflective sheeting using various machine processes. The material is then inspected for defects, and shipped to a plant that will cut the material for the right width and length for its ultimate use. The Applicant plans to renovate 8,175 square feet of the existing structure and construct a 13,825 square foot addition thereby converting Subject Property into a larger facility than currently used by the Occupant which will allow it to continue its growth and to hire additional employees as it expands its operations. After the completion of the scheduled new construction, the Subject Property is projected to have a market value of approximately $6,486,196, which would generate an estimated $4,702,686 in total taxes over the life of the Class 6b Tax Incentive (approximately $391,891 per year). Without the incentive and at full vacancy, the Subject Property would generate a total of only $1,539,060 in total taxes (approximately $128,255 per year) over the life of the incentive. Therefore, should the Class 6b Tax Incentive be approved, the Subject Property would generate an additional $3,163,626 in real estate taxes over the life of the Class 6b Tax Incentive. Please see the attached "12 Year Tax Comparison Chart" for more details. Without the assistance from the Class 6b Tax Incentive, the Applicant will not construct the new addition, nor rehabilitate the existing structure. The Applicant has determined that the without the incentive, the heavy Cook County property tax burden will not make the project feasible. Furthermore, without the Class 6b Tax Incentive, the Occupant will not renew its lease in 2022; the increased lease rate due to the high property taxes will require it to bring its operations to a neighboring county, state, or community. In the event the Occupant does not renew its lease, the Subject Property will become vacant and unused, thereby lowering its total taxes. This would not only affect the total revenue that the property will generate, but it will result in a very established, reputable company with high quality jobs to leave the Village and continue its operations outside of Cook County. In addition to increased property tax revenues, the expansion of the Occupant's operation at the Subject Property will significantly benefit the Village's community and economy. The Occupant's employees will frequent Village restaurants, gas stations, stores, and more. The Occupant's eventual 73 employees are projected to contribute an additional $309,338 per year to the Village's economy. Please see the attached "Employee Economic Impact Estimate." 24 MIIIIIIIIIIIIIIIIIIIIIIII WIIIIIIIIIIIIIIIIIIIIIIII u� N RESOLUTION NO, A RESOLUTION IN SUPPORT OF AVERY DENNISON CORPORATION MAKING APPLICATION FOR A COOK COUNTY CLASS 6B TAX INCENTIVE FOR THE PROPERTY LOCATED AT 902 FEEHANVILLE DRIVE, MOUNT PROSPECT, ILLINOIS WHEREAS, the Village of Mount Prospect encourages community development to provide for economic growth and career opportunities; and WHEREAS, the Village of Mount Prospect desires to promote and preserve industrial uses in the Village; 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, Avery Dennison Corporation has requested the Village of Mount Prospect to support its application for the Class 6B Real Property Classification for property located at 902 Feehanville Drive, Mount Prospect; and WHEREAS, Avery Dennison Corporation intends to expand the existing property by 13,825 square feet and renovate 8,715 square feet of the existing property located at 902 Feehanville Drive; and WHEREAS, an Economic Disclosure Statement has been received and filed by the Village of Mount Prospect; and WHEREAS, the corporate authorities of the Village of Mount Prospect believe that Avery Dennison Corporation's request is in the best interest of the economic development in the Village of Mount Prospect; and WHEREAS, the Village of Mount Prospect supports and consents to the filing of a Class 6B Real Property Classification by Avery Dennison Corporation with the understanding that any occupant of the Property must meet the Class 6B Real Property Classification qualifications for industrial warehousing, manufacturing and/or distribution uses; and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES 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 Real Class 6b Avery Dennison page 1 of 2 26 Property Classification from Cook County for the Property located at 451 Kingston Court and legally described as: LOT 307 IN KENSINGTON CENTER -RESUBDIVISION VIII, BEING A RESUBDIVISION OF LOTS 303, 305 AND 307 IN KENSINGTON CENTER -PHASE THREE -A, IN PART OF THE NORTHWEST 1/4 OF SECTION 35, TOWNSHIP 42 NORTH, RANGE 11, EAST OF THE THIRD PRINCIPAL MERIDIAN, AS PER PLAT RECORDED JUNE 22, 1982 AS DOCUMENT NUMBER 26268098, IN COOK COUNTY, ILLINOIS PIN: 03-35-104-029-0000 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 the Village of Mount Prospect has determined that the Class 6B Real Property Classification is necessary for development to occur on the Property and without such designation the industrial enterprise would not be economically viable causing the Property to be in imminent risk of remaining vacant and unused. SECTION FOUR: 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 2ND day of November, 2021 Paul Wm. Hoefert Mayor ATTEST: Karen Agoranos Village Clerk Class 6b Avery Dennison page 2 of 2 27