The property owner is requesting Village approval for a Cook County Class 6b Property Tax Classification renewal relative to 3733 N. Ventura Drive, consisting of one parcel of property. The site has received two previous Class 6b designations, with initial approval in April 2002, and a first renewal in March 2013.

In order to retain the existing tenant, Atomatic Mechanical, at this property and add additional space to the facility, a Class 6b property tax abatement renewal is being requested. The buyer/applicant, String 6 LLC, is the legal entity that also represents the ownership of the tenant. 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 towards the Zero Interest Loan program over the first five years of the incentive renewal period.

Atomatic Mechanical moved to this particular site in 2003, following initial Class 6b approval.  The company employs 165 workers, of which 47 work on-site full-time.  The company plans to hire as many as 35-40 new full-time employees in the next ten years, adding approximately 15 more full-time staff to their Arlington Heights facility. Atomatic anticipates having a continued positive financial impact on the Village. Both existing and current Staff will provide direct and indirect spending to Village businesses.

Additionally, the ownership plans to spend $1 million on building improvements, either in the form of building expansion or construction of an interior mezzanine, in order to accommodate their space needs in the long term.  This expansion would include sustainable features such installation of LED lighting, and mechanical insulation which conserves energy and helps reduce greenhouse gas emissions. The amount of property tax revenue gained from occupying the property with a Class 6b renewal is estimated at over $750,000 over the 12-year life of the abatement, which is calculated to be approximately $273,000 more than if the property were to be completely vacant over that same period of time. 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 development programs as needed.

Atomatic Mechanical is an established enterprise, and a significant employer, looking to grow within Arlington Heights. The Class 6b incentive would allow for continued occupancy of a 36,500 square foot industrial facility, with planned expansion, helping minimize industrial vacancy while allowing the business to grow in the Village and create additional employment opportunities. A detailed summary of the request by String 6 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 renewal for String 6 LLC for the property located at 3733 N. Ventura Drive.  This approval is subject to compliance with all Village codes and regulations.