HomeMy WebLinkAbout5. NEW BUSINESS 04/06/2010
Village of Mount Prospect
Community Development Department
MEMORANDUM
FROM:
MICHAEL E. JANONIS, VILLAGE MANAGER
DIRECTOR OF COMMUNITY DEVELOPMENT
~. ~/:r&,
4 J I" '0
TO:
DATE:
MARCH 29, 2010
580 SLAWIN COURT - CLASS 6B INDUCEMENT RESOLUTION
SUBJECT:
Attached to this memorandum is a resolution that would grant approval of a Class 6b property tax
incentive for First Industrial Realty Trust, Inc. who is the current owner of 580 Slawin Court. This
property is located in the Kensington Business Center and has been vacant for over 2 years. The 2-
year vacancy qualifies the property for the 6b designation pending approval of the attached resolution
by the Village.
First Industrial is requesting the Class 6b abatement so that they can competitively recruit prospective
tenants for the property. It is estimated that the abatement would reduce the amount of property tax
per square foot from $5.87 to $2.35 for this property. They are competing against other industrial
buildings in the market that have tax rates below $2 per square foot, putting them at a competitive
disadvantage.
Please forward this memorandum to the Village Board for their review and consideration at their
meeting on April 6th. Staff will be present at that meeting to further discuss this matter.
~~1oo~
"
L/WV OFFICES
AMARI & LOCALLO
LEON.'\RD l' AMARI
JOSEPH F. LOCALLO. JR.
JOI-IN G. LOCALLO
.".NTHONY M. F.ARACE
FRANCO A. COLADIPIETRO
7:\4 NORTH \VELLS STREET
OF COUNSEL
VICTOR ,. CACCIATORE
MICHAEL V. FAVIA
..\NTHONY J. FORNEl.LI
CARL ,. FRANK
PHILLIP C. GOLDSTlCK
BRUNO I. TASSONE
SCOTT D. VERI-) EY
CHICAGO. ILLINOIS 60654
TELE PilON E (:~J2) 2;-,S-~.'i.')O
F;\CSI1\.-IlLE (3121 2SfH:SS!'>J
K/\THERINF. A.AM.".RI
VESNA MARUS)C
DAN I EL R. LYNCH
JOSEPH F. LOCALLO. 111
www...mariandloca[[o.com
March 18, 2010
Village of Mount Prospect
c/o Mr. William Cooney, AICP
50 S. Emerson St.
Mount Prospect, IL 60056
RE: Class 68 Real Estate Tax Incentive
Address: 580 Slawin Court
Parcels: 03-35-104-055 and 053
Petitioner: First Industrial Realty Trust, Inc.
Dear Mr. Cooney:
We are sending this letter on behalf of First Industrial Realty Trust, Inc. First Industrial owns the
property located at 580 Slawin Court, Mount Prospect, IL - Property Index numbers 03-35-104-055 and
053.
We hereby formally request a Municipal Resolution from the Village of Mount Prospect which
determines that certain real estate, referenced above, is appropriate for the 68 real estate tax incentive
due to Special Circumstances.
The subject property has remained vacant for over two years. The Cook County Assessor's office
allows for application of the real estate tax 6B incentive for properties that have remained vacant for
over 24 months. Since there will be no purchase for value, the Assessor's office will require a
resolution passed from the Village of Mount Prospect which supports and consents to the 68 incentive
based on Special Circumstances. The Village's finding of Special Circumstances would need to be
approved by the Cook County Board of Commissioners.
The following Special Circumstances justify the Village's support of the 68 incentive:
1. The subject property has remained vacant for over two years. Ownership has not been
able to lease the property mainly due to the real estate taxes. The 68 incentive would
make the property more marketable.
2. The subject property is inferior compared to a newer facility. The ceiling height in the
subject property is 14 ft - compared to newer industrial buildings with ceiling heights
between 24 ft and 30 ft. This makes leasing difficult; however the 68 incentive makes
the subject marketable and competitive during these economic times.
3. The Interior loading docks take up usable space - compared to a newer facility. Again,
the 6B incentive makes the subject marketable and competitive during these economic
times.
4. Substantial money needs to be invested into the subject property in order to upgrade the
building. Without the incentive, the building will remain vacant and money would not be
invested into the property.
5. The following are potential upgrades needed for the property:
1. There are 6 older rooftop mounts HVAC units which service the entire building
2. The property suffers from signs of wear and tear. For example, the Roof needs
to be replaced and there are stained ceiling tiles due to leaks from the rooftop
HVAC units.
When considering whether to support the Class 6 incentive, please consider the following analysis. In
2009 the Cook County Assessor proposed the following assessment for the subject property:
PIN Land Buildina Total Total Total
Assessment Assessment Assessment Market Value RE Taxes
03-35-104-055 82,366 825,809 908,175 $3,632,700 $177,589
Because the property remained 100% vacant, the Assessor granted vacancy relief and the assessment
was reduced as follows:
PIN Land Buildina Total Total Total
Assessment Assessment Assessment Market Value RE Taxes
03-35-104-055, etc 82,366 165,161 247,527 $990,108 $48,403
If the Class 6B incentive was applied to the Assessor's proposed value, the assessment I real estate
tax breakdown is as follows:
PIN Land Buildina Total Total Total
Assessment Assessment Assessment Market Value RE Taxes
03-35-104-055, etc 32,946 330,324 363,270 $3,632,700 $71,036
As you can see, the subject property will generate approximately $22,633 more in real estate tax
revenue with class 6 compared to if the property remains 100% vacant. Please note that all real estate
taxes are estimated based on the 2008 tax rate and multiplier.
Please let us know, as soon as possible, when this issue can be addressed at a Village meeting. For
your review, we have enclosed a copy of the 68 application that we intend on submitting to the Cook
County Assessor's office.
We thank you in advance for your cooperation and attention to these details. As always, please feel
free to contact either myself or Anthony M. Farace in our office, with any questions or if more
information is needed.
Enclosures:
"
ZONING MAP
"
't
'"
"'"
.'11
ll'
"
"
301-A
-042.
II
..
([Q4> ___J ,
~
If
oJ, L.'
..
..
~
..z.a7.12
....1.2....
~02- B
-(J~I
%-11."
II "
Q
@)
PT. 30'
Pt, -()~()
307
-02.9
301-8
I
I, pT.
I -001
I
I
I
I
I
: (iQD
I
I
I
I
I
I
I
-043
,~ N "
3~3.D
p+.
40'
';"'008
-05Z
3oZ'C
----
..
:
"I
-os".
@
PT. '02
-056'
" "
R
-------.-'1
I(E.N~IN<irTO !
. Re",,,,". 0
C.R't41r Ph
R..... No'. ~
I<ENSIN<irTO
.' R.~,,". 0
K..,,~i"3i:o".
( SIDe. ..
R..;.. N.D"'..t
Kf.NS'N(io"O~
Re s...la. of: t.il
K...~;.~t.n j
C Se.e. ....
Rc.c.. :r "l"l8. Z
I
KE,NSIHGid
II Re511l>.:1
Cen\tr p~
with pt..-P
"1-7.-11
Ree. Nov, 1
KENNSINGTO
L.t 301 ." K. .
t\" NWY..
R.., Mor Ill, I
l<EN~JNGToJ
D ....sul:. oft~~
R"". "'.IV" J
KENS'NGTO
Q . R...u. ..c:-
t..A....... Pl..,
Ra-c.. S.,. 17.1
KEN5INGTO~
5...1.. .f p."
S..". 3$"-'U
Itec.. Fe!.. I.
KUISI"'G.To~1
Slll~. .oJ p.r
$..". 3S"-4
R..c.. 3'~"",. I
KE"'S''''IOTO~
Suit. G~ L.
C............ RC'llIll
.f Lo'fl 40 J
c.e,.,t.,. P......
he.. A....,). 7.
KENS.NGTO
S,,~. .. L.+.
b""",:i+ofll e .
Q,.J LO+$ 4
CARte. Pl,U]
Rat.. Mflr..2.
KEN5INlOTO.
il P...." b. of
Kens'n!\-o"
P......3"n& ..
RESOLUTION NO.
A RESOLUTION IN SUPPORT OF
FIRST INDUSTRIAL REALTY TRUST, INC.
580 SLAWIN COURT, MOUNT PROSPECT, ILLINOIS,
MAKING APPLICATION FOR
COOK COUNTY CLASS 6B TAX ABATEMENT
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 new businesses to become established 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, the subject property has been vacant for more than 24 consecutive months;
and
WHEREAS, First Industrial Realty Trust, Inc. has requested the Village of Mount Prospect
to support its application for a Class 6b Real Property Classification at 580 Slawin Court,
Mount Prospect, Cook County (Property); and
WHEREAS, the Village of Mount Prospect has found that special circumstances exist in
that the Village is at a competitive disadvantage with nearby DuPage and Lake Counties
and their tax structure; 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 PRESIDENT AND BOARD OF
TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS
ACTING IN THE EXERCISE OF THEIR HOME RULE POWERS:
SECTION ONE: That the President and Board of Trustees of the Village of Mount
Prospect do hereby support and consent to the application of First Industrial Realty Trust,
Inc. for a Class 6B Property Classification from Cook County, which allows a 10%
assessment level for the first 10 years, 15% in the 11 th year and 20% in the 12th year for
the Subject Property located at 580 Slawin Court and legally described as:
PIN: 03-35-104-053-0000 and 03-35-104-55-0000
Lot 3020 in the Kensington Center-Resubdivision Twenty, in part of the Northeast
Quarter of Section 35, Township 42 North, Range 11, East of the Third Principal
Meridian, in Cook County, Illinois.
A
Page 2/2
Class 6 Tax Abatement
SECTION TWO: That the Village of Mount Prospect supports industrial growth, increased
employment and economic development and this proposed development is in furtherance
of this goal. The Board of Trustees of the Village of Mount Prospect further finds that this
incentive is necessary for development to occur on the Property.
SECTION THREE: That development of the property is subject to compliance with all
requirements of the 1-1 (Light Industrial) District and development standards ofthe Village
of Mount Prospect.
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 day of April, 2010.
Irvana K. Wilks
Mayor
M. Lisa Angell
Village Clerk
H :\CLKO\WI N\RESOLUTION\class6btaxFirstind ustrialRealtytrustapril6201 Oa.doc
RESOLUTION NO.
A RESOLUTION REGARDING THE RELEASE
OF CLOSED SESSION MINUTES
WHEREAS, the President and Board of Trustees of the Village of Mount Prospect have, from time
to time, met in Closed Session for purposes authorized by the Illinois Open Meetings Act; and
WHEREAS, as required by the Act, the Village Board has kept written minutes of all such Closed
Sessions; and
WHEREAS, pursuant to the requirements of Public Act 85-1355, the President and Board of
Trustees have met in Closed Session to review the minutes of all Closed Sessions; and
WHEREAS, the President and Board of Trustees have determined that a need for confidentiality still
exists as to the Closed Session minutes for the meetings as set forth on Schedule A attached
hereto; and
WHEREAS, the President and Board of Trustees have further determined that the minutes of
Closed Sessions, as noted on Schedule "A" and Schedule liB" attached hereto, no longer require
confidential treatment and should be made available for public inspection.
NOW, THEREFORE, BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF
THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS ACTING IN THE EXERCISE
OF THEIR HOME RULE POWERS:
SECTION ONE: That the President and Board of Trustees of the Village of Mount Prospect do
hereby authorize the release of the Closed Session minutes as indicated on Schedule "A" and
Schedule liB" attached hereto and made a part of this Resolution.
SECTION TWO: That the Village Clerk is hereby authorized and directed to make said minutes
available for inspection and copying in accordance with the standing procedures of the Clerk's
Office.
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 day of April, 2010.
Irvana K. Wilks
Mayor
ATTEST:
M. Lisa Angell
Village Clerk .
H:\CLKO\WIN\RESOLUTION\April62010 ResolutionClosed Session Minuites.doc
~
SCHEDULE A
Closed Sessions of the President and Board of Trustees of the Village of Mount Prospect
were held as listed below. The minutes that have been determined may be released for
public inspection are indicated by the word "Released" or "Partial Release", those determined to
remain as confidential are indicated by the words "Not For Release":
January 20, 2004
January 27, 2004
February 3, 2004
March 9, 2004
May 11, 2004
May 18, 2004
June 15, 2004
July 6, 2004
September 21,2004
September 28, 2004
November 16,2004
November 23, 2004
December 7,2004
January 11, 2005
January 25, 2005
February 15, 2005
April 6, 2005
April 26, 2005
May 24, 2005
June 7, 2005
June 21, 2005
July 5, 2005
August 2, 2005
August 16, 2005
September 6,2005
September 20,2005
October 4, 2005
October 18, 2005
October 18, 2005
October 25, 2005
November 8, 2005
December 13, 2005
December 20, 2005
Partial Release
Released
Released
Partial Release
Partial Release
Released
Released
Released
Partial Release
Not for Release
Partial Release
Partial Release
Partial Release
Partial Release
Released
Partial Release
Not for Release
Released
Not for Release
Not for Release
Partial Release
Not for Release
Partial Release
Released
Partial Release
Released
Partial Release
Not for Release
Not for Release
Not for Release
Not for Release
Partial Release
Not for Release
10f 1
SCHEDULE B
Closed Sessions of the President and Board of Trustees of the Village of Mount Prospect
were held as listed below. The minutes that have been determined may be released for
public inspection are indicated by the word "Released" or "Partial Release", those determined to
remain as confidential are indicated by the words "Not For Release":
January 3, 2006
January 10, 2006
January 23, 2006
January 31,2006
February 7, 2006
March 7, 2006
April 4, 2006
April 18, 2006
April 25, 2006
May 2, 2006
May 16, 2006
June 6, 2006 (6:00p.m.)
June 6, 2006 (8:41 p.m.)
June 13, 2006
July 5, 2006
July 11, 2006
July 18, 2006 (6:00 p.m.)
July 18, 2006 (7:41 p.m.)
July 24, 2006
August 8, 2006
August 15, 2006
September 5, 2006
October 17,2006
November 21,2006
December 12, 2006
December 19, 2006
January 2, 2007
January 16, 2007
February 20, 2007(6:08 p.m.)
February 20, 2007(8:0 p.m.)
March 13, 2007
April 10, 2007
May 15, 2007
June 5, 2007
June 26, 2007
July 17, 2007
August 7,2007
August 21,2007
September 4, 2007
October 2, 2007
October 9, 2007
October 23, 2007(6:05 p.m.)
October 23,2007(9:18 p.m.)
November 6, 2007
November 13, 2007
November 20, 2007 (6:03p.m.)
November 20, 2007 (9:00p.m.)
December 4, 2007 (6:05 p.m.)
December 4, 2007 (8:25 p.m.)
December 18, 2007
10f 1
Partial Release
Released
Not for Release
Not for Release
Released
Not for Release
Partial Release
Not for Release
Not for Release
Partial Release
Partial Release
Not for Release
Partial Release
Release
Partial Release
Not for Release
Released
Partial Release
Not for Release
Not for Release
Release
Partial Release
Released
Not for Release
Partial Release
Not for Release
Partial Release
Partial Release
Not for Release
Release
Partial Release
Not for Release
Not for Release
Partial Release
Not for Release
Not for Release
Partial Release
Released
Released
Not for Release
Not for Release
Released
Released
Not for Release
Not for Release
Not for Release
Release
Not for Release
Partial Release
Not for Release
>.
('