Witron Logistics, Inc. is the contract purchaser of the property in question, 3722 N. Ventura Drive, consisting of one parcel of property. The company is requesting Village approval for a Cook County Class 6b Property Tax Classification, upon which the purchase is contingent.  Witron is an Arlington Heights-based company located at an adjacent property, 3721 N. Ventura Drive. This purchase would be an expansion of their current business, not a consolidation. The company would operate within the entirety of both facilities.

The Village's guidelines for Class 6b applicants are based upon employing at least 25 workers, showing financial benefit to the Village, and commitment to providing 10% of their property tax savings over the first five years towards the Zero Interest Loan program or other economic development activities as may be authorized by the Village Board. This property has not been previously approved for a Class 6b designation and has been 100% vacant since July 2018. As the property has not been completely vacant for at least 24 months, the applicant is applying for “special circumstances” in order to obtain Cook County approval.

Witron currently employs 50 workers in Arlington Heights. Approximately five of these workers would operate out of the new facility. However, the company, a logistics and warehousing service provider to the food industry, plans to add 20-25 more employees at the new facility and another 40-50 at their existing building over the 12-year life of the incentive.  As this currently does not meet the Village guideline of having at least 25 employees at the new facility at time of application, they are requesting an exemption from this requirement.

The amount of property tax revenue gained from attracting the business with a Class 6b designation, as opposed to allowing the site to remain vacant, is estimated at $437,000 over the 12-year life of the abatement. Company representatives have signed an agreement to provide the Village with 10% of the property tax savings over the first five years of the abatement in order to help fund the Zero Interest Loan program or other economic programs. 

As previously mentioned, the purchase of the property, and expansion of Witron in Arlington Heights, is contingent upon approval of the Class 6b incentive. If the company is unable to expand, they will need to look for other properties as they are outgrowing their current facility.  This could result in this expanding company locating in another municipality. Witron is an established and growing company looking to set up long-term stability in Arlington Heights. The Class 6b incentive would allow for re-occupancy of a 14,880 square foot industrial facility that has sat vacant for over a year, while reducing industrial vacancy. Further, approval would allow a growing business to expand the Village and create additional employment opportunities. A detailed summary of the request by the applicant for a Cook County Class 6b incentive is attached.

RECOMMENDATION

It is recommended that the attached Resolution Approving Certain Property to Participate in the Cook County Class 6b Assessment Incentive Program for Witron Logistrics, Inc., located at 3722 N. Ventura Drive be approved.