Pine Tree Holdings, LLC is requesting approval for a Cook County Class 6b Property Tax Classification renewal relative to 3727 N. Ventura Drive, consisting of two parcels of property. In order to retain a long-time Arlington Heights business, the Class 6b designation renewal is being requested in order to accommodate purchase, renovation, and relocation into the existing 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 programs. The applicant is the prospective buyer of the site and its related business, Kolbi Pipe Marker, would lease the space. There is currently an active Class 6b on the property, which is why a renewal is being pursued. If approved by the Village Board and Cook County the property tax abatement will not take effect until the 2024 tax year (payable in 2025), which would be the tenth year of the existing incentive period.
The applicant expects to have a positive financial impact on the Village. The owner/developer is conducting a $325,000 renovation to the property. In addition to the property taxes generated, retaining Kolbi Pipe Marker will keep 52 jobs in Arlington Heights. Additionally, the applicant has signed an agreement to provide the Village with 10% of their property tax savings over the first five years of the new abatement period, in order to help fund the Zero Interest Loan program or other economic programs. Purchase of the property is contingent upon Class 6b approval.
The proposed purchase and renovation of 3727 N. Ventura Drive allows the Village to retain a growing manufacturing business and see ongoing reinvestment in an industrial property. A detailed summary of the request by Pine Tree Holdings, LLC for a Cook County Class 6b incentive is attached.
RECOMMENDATION
It is recommended that the Village Board of Trustees approve a Resolution supporting the application for a Class 6b tax incentive for Pine Tree Holdings, LLC for a 36,000 square foot building located at 3727 N. Ventura Drive. This approval is subject to compliance with all Village codes and regulations.