BACKGROUND

Midwest Industrial Funds (MIF) is requesting Village approval for a Cook County Class 6b Property Tax Classification relative to 3 W. College Drive, consisting of one parcel of property.  In order to be able to purchase and renovate a building falling into disrepair and to make the property attractive to a large industrial tenant, a Class 6b designation 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 applicant will not be occupying the building, but rather purchasing the site in order to update it and lease to a large tenant.  If approved by the Village Board and Cook County, the property tax abatement will not take effect until a tenant has begun occupancy of the building.  Since the building has not been vacant for over two years, the purchaser is applying for Special Circumstances in order to gain approval for the incentive.

The applicant expects to have a positive financial impact on the Village. The buyer will be conducting a renovation of approximately $500,000 to the building before the end of 2015, and expects to spend several hundred thousand more on tenant improvements once a lease has been signed.  This will increase the long-term value and viability of the property. In addition to the taxes generated, a new tenant will increase employment within the Village and help drop the community’s industrial/flex vacancy rate by over one-half percent.  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, in order to help fund the Zero Interest Loan program.

Midwest Industrial Funds has a long track record of bringing antiquated industrial facilities back to vibrancy while attracting stable tenants for these properties.  The Class 6b incentive would allow for upgrades beneficial to 3 W. College Drive and permit the site’s long-term viability.  A detailed summary of the request by Midwest Industrial Funds 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 MIDWEST INDUSTRIAL FUNDS (MIF) FOR THE PROPERTY LOCATED AT 3 W. COLLEGE DRIVE.  THIS APPROVAL IS ALSO SUBJECT TO COMPLIANCE WITH ALL VILLAGE CODES AND REGULATIONS.