The property owner is requesting Village approval for a Cook County Class 6b Property Tax Classification renewal relative to 600 W. University Drive, consisting of one parcel of property. The site has received two previous Class 6b designations, with initial approval in May 2002, and a first renewal in April 2013.
In order to retain the existing tenant at this property, Carlson Labs, and make sustainable improvements to the facility, a Class 6b property tax abatement renewal is being requested. The applicant, J.R. Carlson Laboratories, Inc., 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.
Carlson Labs purchased this site from Cano Packaging, and relocated to it from a nearby Arlington Heights site in 2012. The company employs 135 full-time workers, and 11 part-time workers. Of these, 26 are Arlington Heights residents. The company plans to hire as many as 35 new full-time employees, and nine more part-time workers, over the next ten years. Carlson Labs anticipates having a continued positive financial impact on the Village. Both existing and future Staff will provide direct and indirect spending to Village businesses.
Additionally, ownership plans to make several sustainable building improvements. These enhancements include installation of LEED certified heating units and motion sensor lighting. Further energy-efficient improvements planned involve adding additional insulation to the roof (which could substantively reduce heating usage), and ozone-protecting UV filtration for the manufacture of their product. Also, Carlson Labs recently installed two electric vehicle charging stations on site. This is in addition to planned equipment purchases towards growth of their on-site testing lab.
The amount of property tax revenue gained from occupying the property with a Class 6b renewal is estimated at more than $2.3 million over the 12-year life of the abatement. Even if the site were to go vacant, and a new tenant to come in, it is unlikely that it would be able to match Carlson Labs’ employment count and planned growth. The company also provides some sales tax revenue to the Village. 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.
Carlson Labs 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 93,000 square foot industrial facility, with planned sustainable improvements, helping minimize industrial vacancy while allowing the business to grow and create additional employment opportunities. A detailed summary of the request by J.R. Carlson Laboratories Inc. for a Cook County Class 6b renewal 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 J.R. Carlson Laboratories Inc. for the property located at 600 W. University Drive. This approval is subject to compliance with all Village codes and regulations.