The GC Net Lease (Arlington Heights) Investors LLC, is the owner of 1455 W. Shure Drive, consisting of two parcels of property.  This property owner is requesting Village approval for a Cook County Class 6b Property Tax Classification, upon which a lease to occupy the building is contingent.  If approved, the new business would bring a warehouse, sorting, and distribution operation to this vacant property, reoccupying all 215,000 square feet of building.

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 an active Class 6b designation that was approved for renewal in 2013.  That said, the site has been 100% vacant since December 2017, and the lease is contingent upon approval for a new 6b designation.  The applicant is seeking special circumstances to establish that there is no purchase for value from the applicant.

If approved for the incentive, the tenant would employ 20-30 full-time workers, 130 part-time workers, and 181 delivery drivers in Arlington Heights.  Approximately 80 “flex drivers” (third-party workers not employed by the company) would also enter/exit the site on a daily basis.  The applicant’s tax attorney estimates the amount of property tax revenue gained from attracting the business with a new Class 6b designation at $8 million. Allowing the site to remain vacant with its current Class 6b designation is estimated to bring in $6 million.  Restarting the abatement with the new tenant and site improvements represents a potential gain of $2 million in cumulative property taxes over the 12-year life of the incentive.

The applicant has 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 lease and re-tenanting of the property as proposed is contingent upon approval of the Class 6b incentive.

A new Class 6b designation would allow for re-occupancy of a 215,000 square foot industrial facility that has sat vacant for over two years, while reducing industrial vacancy and allowing a new business to locate to 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 The GC Net Lease (Arlington Heights) Investors LLC, for 1455 West Shure Drive, be approved.