RPG Arlington Heights Development, LLC is requesting approval for a Cook County Class 6b Property Tax Classification for 1400-1500 W. Dundee Road, consisting of four parcels of property.  In order to be able to develop two modern manufacturing/warehouse facilities totaling around 510,000 square feet, a Class 6b designation is being requested.

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 programs.  The applicant is the prospective buyer of the site and will not be occupying the building, but rather, leasing to prospective tenants.  If approved by the Village Board and Cook County, the property tax abatement will not take effect until tenants occupy at least 50% of the buildings’ combined square footage.

The applicant expects to have a positive financial impact on the Village. The owner/developer is conducting a redevelopment of approximately $40 million to the site.  This will increase the long-term value and viability of the property.  In addition to the taxes generated, new tenants will increase employment within the Village.  The applicant estimates that the completed facilities should serve approximately 125 full-time workers.  Both existing buildings on-site have been 100% vacant for over three years, and would be demolished to make way for the new facilities.  Further, the applicant has signed an agreement to provide the Village with 10% of their 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.

Additionally, since the project was initially planned, the unforeseen need to construct a detention vault to support truck traffic has added an additional $4.1 million to the project cost.  Coupled with a substantial increase in the cost of steel and roofing has added $7.5 million to the total development cost.  The developer is also planning significant sustainable design features including energy-efficient LED lighting, rainwater collection via underground infiltration, and clerestory windows.  The developer has stated that the project cannot move forward without Class 6b approval. 

The proposed redevelopment of 1400-1500 W. Dundee Road provides the Village with an exciting opportunity to attract new enterprises to the community.  The Class 6b incentive would allow for the revitalization of a property struggling with long-term vacancy and bringing only the second newly developed spec industrial building to Arlington Heights in the past decade.  A detailed summary of the request by RPG Arlington Heights Development, LLC 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 RPG Arlington Heights Development, LLC, located at 1400-1500 W Dundee Road, be approved.