BACKGROUND

Molon Motor & Coil Corp. is requesting Village approval for a Cook County Class 6b Property Tax Classification Renewal relative to 300 N. Ridge Avenue, consisting of four parcels of property. Molon Motor & Coil moved to the property in 2003 and is the sole tenant. In order to be able to retain this business, a Class 6b renewal for the property 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. 

Molon Motor & Coil employs 109 full-time workers today and may add as many as five more in the next three years. This greatly exceeds the Village’s employment requirement.  The applicant also expects to have a positive financial impact on the Village. Current staff provide direct and indirect spending to Village businesses.  Furthermore, the amount of property tax revenue gained from retaining the business with a Class 6b designation, as opposed to allowing the site to become vacant, is estimated at $36,000 over the 12-year life of the abatement based on calculations from the applicant’s financial advisor. 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.

Molon Motor & Coil has invested in Arlington Heights and is a significant employer and contributor to the Village’s economy. The Class 6b incentive would allow for continued occupancy of an 81,000 square foot industrial facility, while allowing the business to grow in order to create additional employment opportunities.  A detailed summary of the request by Molon Motor & Coil 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 300 N. Ridge, occupied by Molon Motor & Coil Corp.