Razny Family Limited Partnership, Ltd. is requesting approval for a Cook County Class 6b Property Tax Classification renewal relative to 416 W. Campus Drive, consisting of one parcel of property. In order to help a growing business establish an operation within Arlington Heights, the Class 6b designation is being requested in order to accommodate purchase of, and planned improvements to, the property.
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. The space will be used to assemble and distribute product to each of the company’s four retail jewelry stores. There is no current active Class 6b designation on the property. As the property will not likely have been 100% vacant for two years by the time it is occupied by the applicant, special circumstances are being sought through the County. If approved by the Village Board and Cook County, the property tax abatement is expected to take effect in tax year 2023 (payable in 2024).
The applicant expects to have a positive financial impact on the Village. The buyer is planning approximately $400,000 in improvements to the property. This includes landscaping enhancements, installation of a white roof, and conversion to Energy Select windows. In addition to the property taxes generated, Razny will employ 20 full-time workers in Arlington Heights upon opening, with plans to add at least five more during the 12-year incentive period. 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 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 416 W. Campus Drive allows the Village to attract a growing business and avoid potential long-term vacancy to the site, while receiving ongoing reinvestment to this property. A detailed summary of the request by Razny Family Limited Partnership, Ltd. 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 Razny Family Limited Partnership, Ltd. for a 15,000 square foot building located at 416 W. Campus Drive. This approval is subject to compliance with all Village codes and regulations.