HomeMy WebLinkAbout8.1 A RESOLUTION IN SUPPORT OF TATKOWSKI INVESTMENT GROUP, LTD.'S APPLICATION FOR A RENEWAL OF THEIR COOK COUNTY CLASS 6B TAX INCENTIVE FOR THE PROPERTY LOCATED AT 3020 MALMO DRIVEM+awn �'xyt�lts�=e
Item Cover Page
Subject A RESOLUTION IN SUPPORT OF TATKOWSKI INVESTMENT
GROUP, LTD. -S APPLICATION FOR A RENEWAL OF THEIR COOK
COUNTY CLASS 6B TAX INCENTIVE FOR THE PROPERTY
LOCATED AT 3020 MALMO DRIVE
Meeting
Fiscal Impact
(Y/N)
Dollar Amount
Budget Source
Category
Type
Information
February 20, 2024 - REGULAR MEETING OF THE MOUNT
PROSPECT VILLAGE BOARD
NEW BUSINESS
Action Item
N
Tatkowski Investment Group, Ltd. (Applicant) is seeking support for adoption of a resolution
supporting the renewal of their Cook County Class 6b Incentive for the property located at
3020 Malmo Drive (Subject Property). The renewal would be for an additional 12 years and
would enable them to maintain their multipurpose loader sale, storage, distribution, and repair
facility at this location. Cook County granted the original 6b incentive in 2015 when the
property was unincorporated.
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.
The Subject Property consists of an approximately 27,000 square foot building located on a
more than 1 -acre site. The Applicant pays more than $37,000 in annual property taxes on the
Subject Property. Avant Tecno USA, the current tenant of 3020 Malmo Road, employs 23
professionals and relocated from Elk Grove Village to the Subject Property in 2015. Should the
tax savings be granted, the Applicant will install a triple basin system in a drive-in truck dock
area and replace a rooftop A/C unit, totaling $75,000. They plan to use a portion of the
savings to extend their current tenant's lease, as well.
The Applicant is requesting the 6b incentive to maintain their taxes at around $1.50 per
square foot for their property. If the extension is not granted, they estimate 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. Staff has reviewed the submitted application and is
supportive of the request.
Discussion
AItarnntivac
1. Approve the resolution supporting Tatkowski Investment Group, Ltd.'s application for the
renewal of their Cook County Class 6b Incentive for the property located at 3020 Malmo
Drive.
2. Action at the discretion of the Village Board.
Staff Recommendation
Staff recommends that the Village Board approve the resolution supporting
Tatkowski Investment Group, Ltd.'s application for the renewal of their Cook
County Class 6b Incentive for the property located at 3020 Malmo Drive.
Attachments
1. Tatkowski Investment Group, Ltd. 6B Attachment 2-6-2024
2. Resolution 6b renewal Tatkowski
January 25, 2024
Mr. Bill Cooney
Village of Mount Prospect
50 S. Emerson Street
Mount Prospect, IL 60056
RE: 3020 Malmo Drive — 6B Renewal Request
Property PIN # 08-23-202-023-0000
Tatkowski Investment Group, Ltd.
2016 W. Sullivan Court
Mount Prospect, IL 60056
Mr. Cooney,
Tatkowski Investment Group, Ltd. is the owner of the property located at 3020 Malmo Drive,
Mount Prospect, IL ( PIN # 08-23-202-023-0000). We are asking the Village of Mount Prospect to
support us in regards to a municipal ordinance approving a Renewal of a Class 6B incentive. According to
the Cook County Assessor, the new ordinance must reference the original ordinance, including the
original resolution number ( 14-6196, copy of which we are attaching).
Please note, the original ordinance was approved by Cook County Board of Commissioners because the
above mentioned property was located in unincorporated Cook County at that time. Since then, the
location was annexed to Mount Prospect.
The Subject Property consists of an approximately 27,250 square foot building located on a
52,651 square foot site. Building has a 5000 square foot office, two interior docks, two drive-in doors, 18
foot warehouse ceilings and approximately 28 car parking spots. Our Tenant —Avant Tecno USA leases
the property since the original Class 6B incentive was activated in 2015. Current year (2024) represents
the 10th year of the incentive.
Tenant, Property Use, Employment
Avant Tecno USA is a subsidiary of an international company Avant Tecno, headquartered in
Ylojarvi, Finland (www.avanttecno.com ).
Tenant uses property entirely for industrial purposes, primarily sale, storage, distribution and repair of a
compact multi-purpose loaders, attachments and parts. Company opened its North America operations
only 11 years ago in our 5000 square foot warehouse in Elk Grove Village with only 3 employees. They
were expending their operations ever since. In 2015 they moved to 3020 Malmo building. In 2018 we
purchased neighboring building, twice the size of 3020 Malmo in an effort to keep them from moving.
After extensive remodeling, we were able to sign a 5 year lease with them. Currently they lease about
75,000 square feet in those two warehouses. The lease for both properties expires on July 31, 2024.
Avant now has 23 full time employees on site with 2 additional sales people in Cook County. They have
steady record of hiring 2 to 4 additional employees every year.
In about two months from now, we will start negotiating a new Lease. They express their desire
to keep the company in the O'Hare area, but they are also aware of a lot lower taxes in Lake and Du
Page counties. To be competitive, we would like to be as close as it as possible to those counties leasing
rates. This is why we need help from Village of Mount Prospect in the form of a Renewal of a Class 6B
Incentive.
We want to point out that during those 10 years we invested over one million dollars in
remodeling of those two buildings according to Avant specific needs. This amount well exceeds saving
we received from the 6B incentive.
It is our intention to do whatever we can to keep Avant Tecno in those buildings for at least
another 10 years or more. It is our hope that Village of Mount Prospect will support us in our effort.
Property Improvements, Real State Taxes & Local Area Benefits
As mentioned above, since the initial incentive was activated, tax saving have been reinvested in
improvements and renovations for the Subject Property. Mere are some of a major improvements, most
of which were accomplished by using local contractors.
• Installation of a new roof
• Remodeling building fagade including replacing and adding new bigger windows and entry
door
• Complete office remodeling
• Building 2 bathrooms for warehouse employees
• Resurfacing entire parking lot
• Replacement of 3 heating and A/C rooftop units
• Replacement of 4 heating units in warehouse and dock areas
• Recoating entire warehouse floor with epoxy
• Improvements to sprinkler system, new main check valve, fire alarm, etc.
• Opening the south wall and installing overhead drive-in door and a service door.
In addition to the above improvements for 3020 Malmo building, we also invested substantial amount of
money for the remodeling of neighboring building 1450 Algonquin Road before we were able to lease it
to Avant. Some of the improvements for that building included:
• Remodeling building facade on the Malmo side with new bigger windows and entry doors
• Making new wall openings for 2 overhead drive in doors
• Building new inside truck loading dock
• Complete office remodeling
• Building new showroom and training area for 60 people
• Installing fire sprinkler and alarm system in southern half of the building and office area
according to Village of Mount Prospect Fire Code requirements.
• Recoating entire parking lot
Even with 6B incentive in place, 3020 Malmo property generated almost $400,000 in taxes.
Without the Incentive renewal we may not be able to extend the lease with Avant. That could result in
significant vacancy relief from taxes not only to 3020 Malmo but also to adjacent property since it too
would get vacant. Also, signing a long term lease with a new Tenant could take some time.
Tenant's presence in the Village brings additional benefits to Mount Prospect local businesses. Avant
regularly conducts training of their dealer's sales staff, as well as their mechanics. The trainings lasts 4-5
days each month and brings anywhere from 100 to 150 people. Those customers stay in nearby hotels
and dine in local restaurants. On top of it, on site employees generate another revenue for local
businesses.
Class 6B renewal would also help us with 2 improvement projects. First project includes installation of a
triple basin system in a drive-in truck docks area. That would reduce the possibility of a volatile wastes
entering the sewer system. That project is estimated to cost between $45,000 and $50,000.
Second project includes replacement of a rooftop A/C unit for entire warehouse. It is estimated to cost
around $25,000.
Based on the above, Tatkowski Investment Group requests that Village of Mount Prospect review Class
6B Incentive Renewal request and approve the Resolution supporting Class 6B Incentive Renewal for
Subject Property.
Please contact us if you need additional documentation, or if you have any questions.
Sincerely,
Chris Ta kowsk' — Owner
.......
..............
Tatkowski Investment Group, Ltd.
2016 West Sullivan Court
Mount Prospect, IL 60056
chris@kmiforce.com
847-778-2855
COOK COUNTY ASSESSOR
FRITZ KAEGI
04 GOOK p
COOK COUNTY ASSESSOR'S OFFICE
C. 118 NORTH CLARK STREET, CHICAGO, IL 60602
PHONE: 312.443.7550 FAX: 312.603.3352
'c,, n o%ti WWW.COOKCOUNTYASSESSOR.COM
CLASS 613/8 Control Number
RENEWAL APPLICATION
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:Tatkowski Investment Group Telephone: ( 847 ) 778-2855
Address: 2016 W. Sullivan Court
City, State: Mount Prospect, Illinois Zip Code: 60056
Email Address: chris@kmiforce.com
Agent/Representative (if any)
Name: Telephone: (
Address:
City, State:
Email Address:
II. Description of Subiect Property
N/A
Street address: 3020 Malmo Drive
Zip Code:
City, State: Arlington Heights, Illinois Zip Code:
Permanent Real Estate Index Number (s): 08-23-202-023-0000
Township: Elk Grove
IV.
M
VII.
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.
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 occupants business, including corporate letterhead,
brochures, advertising material, leases, photographs, etc.
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
[X] Occupation of Abandoned Property - With Special Circumstance
Employment
How many permanent full-time and part-time employees do you now employ?
On -Site:
Full-time:
23
Part-time:
0
In Cook County:
Full-time:
25
Part-time:
0
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
Krzysztof Tatkowski _ 1, the undersigned, certify that / 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 re
Krzysztof Tatkowski
Print Name
Owner
Me
3
January 25, 2024
Date
1214118
INCENTIVES CLASS LIVING WAGE ORDINANCE AFFIDAVIT
Krzysztof Tatkowski ae 999FA Ow 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 ageeL 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, (Sec. 74-71), as amended:
X Class 6B Class 8 (Industrial property) Class 9 Class 7
3. 1 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):
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 ffia t yeth not.
- Applicant
AgenVatignaWire Agent's Name &Title
Agent's Mailing Address Agent's Telephone Number
Krzysztof Tatkowski 2016 W. Sullivan Court, Mount Prospect, IL 60056 847-778-2855
Applicant's Name Applicant's Mailing Address
chris@kmiforce.com
Applicant's Email Address
Subscribe anAworn before me this 25th day of January , 2024
Of
JACK HAZEKAMP
Official Seal
Notary Public - State of Illinois
My Commission Expires Oct 14, 2024
EXHIBIT A
(Please type or Print)
PIN(s) Common Address
08-23-202-023-0000 3020 Malmo Drive, Arlington Heights, IL 60005
ormW16
5
[ This page is intentionally blank ]
Legal Description for the Property
3020 Malmo Drive, Arlington Heights, IL 60005
Lot 9 in ELMHURST — ALGONQUIN PARK, Unit 1, being a
resubdivision of part of Lot 3 in linneman's Division in Section 23,
Township 41 North, Range 11 East, of the 3rd Principal Meridian, in
Cook County, Illinois.
Property is located at latitude 42:03:21 North and longitude -87:94:10 West.
Its street address is 3020 Malmo Drive, Arlington Heights, IL 60005.
Cook County Assessor's Office PIN Number is - 08-23-202-023-0000
The subject property consists of an approximately 27,250 square foot building located
on 52,651 square foot site (1.2318 acres). Building has 5,000 square foot office, 2 interior docks,
two drive-in doors, 18 foot warehouse ceiling, and approximately 28 car parking spots.
Our Tenant — Avant Tecno USA leases this building since 2015 and neighboring building (1450
Algonquin Rd.) since 2019. Current Leases for both buildings expire on July 31, 2024.
Attached hereto please find:
- Copy of Cook County Class 6B Resolution
- Area Map
- Plat of Survey
- Tax Map
- Aerial View
- Outside and Inside Pictures of the Building
- Street Views
Of
Cook County Class 6B resolution
Dated December 17, 2014
I an
3020 Malmo Drive, Arlington Heights, IL 60005
08-23-202-023-0000
o
CERTIFICATE AS KEEPER OF RECORDS AND FILES
STATE OF ILLINOIS,)
)SS.
COUNTY OF COOK
1, DAVID ORR, County Clerk of Cook County, in the State aforesaid and keeper of the records
and files of said Cook County, do hereby certify that the attached Resolution is a true and exact
copy of the Final Action Summary of the Cook County Board of Commissioners at their meeting
of Wednesday, December 17, 2014, all of which appears from the records and files of my office.
IN WITNESS WHEREOF I have hereunto set my hand and
affixed the Seal of said County at my office in the City of
Chicago in said County, this 15th day of January A.D. 2015.
County Clerk
ki
ASR 6 M5
14-6196
RESOLUTION
Sponsored by
THE HONORABLE TONI PRECKWINKLE PRESIDENT AND
TIMOTHY O. SCHNEIDER, COUNTY COMMISSIONER
TATKOWSKI INVESTMENT GROUP 6B PROPERTY TAX INCENTIVE REQUEST
WHEREAS, the Cook County Bureau of Economic Development received and reviewed a Real Property
Assessment Classification 6b application containing the following information:
Applicant: Tatkowski Investment Group
Address: 3020 Malmo Drive, Arlington Heights, Illinois
Municipality or Unincorporated Township: Unincorporated Elk Grove Township
Cook County District: 15
Permanent Index Number: 08-23-202-023-0000
Municipal Resolution Number: Unincorporated Cook
Number of month property vacant/abandoned: Seven (7) years�S'
Special circumstances justification requested: Yes //P
Estimated Number of jobs created by this project: Five (5) full-time qP,�
Estimated Number of jobs retained at this location: Six (6) full-time f,
Estimated Number of employees in Cook County: Six (6) full-time
Estimated Number of construction jobs: None
Proposed use of property: Industrial use: warehousing and distribution of multi-purpose loaders
Living Wage Ordinance Compliance Affidavit Provided: Yes
WHEREAS, the Cook County Board of Commissioners has adopted a Real Property Assessment Classification 6b
that provides an applicant a reduction in the assessment level for an abandoned industrial facility; and
WHEREAS, the Cook County Classification System for Assessment defines abandoned property as buildings and
other structures that, after having been vacant and unused for more than 24 continuous months, there has been no
purchased for value by a purchaser and the property is in need of substantial rehabilitation; and
WHEREAS, in the instance where the property does not meet the definition of abandoned property, the
municipality or the Board of Commissioners, may determine that special circumstances may exist that justify
finding that the property is abandoned for purpose of Class 6b; and
WHEREAS, in the case of abandonment of over 24 months and no purchase for value by a disinterested buyer, the
County may determine that special circumstances justify finding the property as being deemed abandoned; and
WHEREAS, Class 6b requires a Resolution by the County Board validating the property as abandoned for the
purpose of Class 6b; and
WHEREAS, the municipality states the Class 6b is necessary for development to occur on this specific real estate.
The municipal Resolution cites the qualifications of this property to meet the definition of abandoned with special
circumstances; and
WHEREAS, industrial real estate is normally assessed at 25% of its market value, qualifying industrial real estate
eligible for the Class 6b can receive a significant reduction in the level of assessment from the date that new
construction or rehabilitation has been completed, or in the case of abandoned property from the date of substantial
re -occupancy. Properties receiving Class 6b will be assessed at 10% of the market value for 10 years, 15% for the
I Ith year and 20% in the 12th year.
NOW, THEREFORE, BE IT RESOLVED, by the President and Board of Commissioners of the Count} of Cook,
that the President and Board of Commissioners validate the above -captioned property is deemed abandoned with
special circumstances under the Class Gb, and
BE IT FURTHER RESOLVED, that the County Clerk is hereby authorized and directed to forward a certified
copy of this Resolution to the Office of the Cook County Assessor.
Approved and adopted this 17th of December 2014.
TONI PRECKWINKLE, President ;i pFZ,.EDs YTH4.COARDO_r
Cook County Board of Commissioners COOK COUNTY COMMISSIONERS
Attest: DAVID ORR, County Clerk DEC17 2014
EC
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3020 MALMO DRIVt
ARLINGTON HEIGI ITS. ILLINOIS
TAX MAI)
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'020 MALMO DRI Vl:,". ARLINGTON f ]EIGHTS. ILLIN(MS Page 14
AERIAL VIEW
East (front) & north elevation -- looking SOLItheast
Main entrance
North elevation and parking lot — looking west
South and east elevations — looking northwest
Private office
Lunch room
LUnch room
Hallway
Front loading clock
Front office
Men's washroom
Warehouse
V/orchoome
CciUnghon�hcmin�Unit
Street view --. looking south
Street view - looking north
I
RESOLUTION NO.
A RESOLUTION IN SUPPORT OF
TATKOWSKI INVESTMENT GROUP, LTD APPLICATION FOR A RENEWAL OF A
CLASS 6B INCENTIVE FOR THEIR PROPERTY LOCATED AT
3020 MALMO DRIVE, ARLINGTON HEIGHTS, 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, Tatkowski Investment Group, LTD has requested the Village of
Mount Prospect support its application for renewal of the Class 6B Real
Property Classification at 3020 Malmo Drive, Arlington Heights, Illinois, Cook
County; 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 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 613
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 3020 Malmo Drive and legally described as:
LOT 9 IN ELMHURST — ALGONQUIN PARK, UNIT 1, BEING A RESUBDIVISION OF
PART OF LOT 3 IN LINNEMAN'S DIVISION IN SECTION 23, TOWNSHIP 41 NORTH,
RANGE 11 EAST, OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY,
ILLINOIS
Property Index No. 08-23-202-023-0000 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 February 2024.
Paul Wm. Hoefert
Mayor
ATTEST:
Karen M. Agoranos
Village Clerk
Pg. 2 of 2 6b Tatkowski