A Resolution Approving Renewal of Industrial Real Estate Tax Incentive for Certain Real Estate in the Village of Arlington Heights, Cook County, Illinois (Shot Realty Company, 1735 E. Davis Street)
BACKGROUND:
Shot Realty Company is requesting Village approval for a Cook County Class 6b Property Tax Classification Renewal relative to 1735 E. Davis Street. In order to be able to renew the leases of the property owner’s current tenants, a Class 6b renewal 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. The current tenants employ 12 full-time workers, with the intention of hiring six more over the next three years. Although this does not meet the standard requirement of 25 employees, a renewal would retain the current businesses and employees, and provide property tax revenues that would otherwise not be generated if the site was vacant.
Over the 12-year life of the renewal, the applicant estimates generating $1.96 million in property taxes, whereas a vacant building would only generate $820,000 over the same period of time. The owner also intends to reinvest in the property by replacing roofs and resurfacing the parking lot with the savings from the abatement. In addition to the 12 full-time employees and six potential new employees, the tenants conduct business with several contractors which contribute to the community’s economic well-being through purchases generating sales tax.
Shot Realty, the property owner, has indicated that the Class 6b incentive is necessary to be able to retain their tenants at 1735 E. Davis Street and allow for the aforementioned site improvements. In addition, the landlord 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. A detailed summary of the request by Shot Realty Company 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 SHOT REALTY COMPANY FOR THE PROPERTY LOCATED AT 1735 E. DAVIS STREET. THIS APPROVAL IS SUBJECT TO COMPLIANCE WITH ALL VILLAGE CODES AND REGULATIONS.