BACKGROUND

3860 Ventura LLC is requesting Village approval for a Cook County Class 6b Property Tax Classification relative to 3860 N. Ventura Drive, consisting of one parcel of property.  The site has been 100% vacant since September 2014.  In order for their prospective tenant, Ark Pharm, to relocate into the building, a Class 6b property tax abatement 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 a commitment to providing 10% of their property tax savings over the first five years towards the Zero Interest Loan program.

At their current location in Lake County, Ark Pharm employs 13 workers (nine full-time), with plans to grow to as many as 23 employees (19 full-time) in Arlington Heights during the life of the incentive.  The applicant does anticipate having a positive financial impact on the Village. Both current and future staff will provide direct and indirect spending to Village businesses.  Furthermore, the amount of property tax revenue gained from attracting the businesses with a Class 6b designation, as opposed to allowing the site to remain vacant, is estimated at nearly $190,000 over the 12-year life of the abatement.  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.

Ark Pharm is an established and growing company looking to set up long-term stability in Arlington Heights.  The Class 6b incentive would allow for re-occupancy of a 15,654 square foot industrial facility, reducing industrial vacancy while allowing a new business to locate to the Village and create additional employment opportunities.  A detailed summary of the request by 3860 Ventura LLC for a Cook County Class 6b incentive is attached.

RECOMMENDATION

It is recommended that the Village Board approve the attached Resolution Approving Certain Property to Participate in the Cook County Class 6b Assessment Incentive Program for the property located at 3860 N. Ventura Drive.