Bormont LLC is requesting Village approval for a Cook County Class 6b Property Tax Classification relative to 525 W. University Drive, consisting of one parcel of property. The site has been occupied previously by Anderson & Vreeland, but has been used exclusively for storage since early 2014.
In order for the new tenant, National Heat and Power, to grow within the facility and invest in the property, 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 commitment to providing 10% of their property tax savings over the first five years towards the Zero Interest Loan program.
National Heat and Power employs 90 workers (50 of which are full-time), with plans to add as many as eight full-time employees in Arlington Heights in the next ten years. However, business ownership has stated that no more than 25 workers will be on the premises at one time. This is because the majority of employees work at various sites around the Chicago area.
The applicant does anticipate having a positive financial impact on the Village. Both existing and current Staff will provide direct and indirect spending to Village businesses. Furthermore, the amount of property tax revenue gained from occupying the property with a Class 6b designation, as opposed to allowing the site to become vacant, is estimated at over $180,000 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 or other economic development programs as needed.
National Heat and Power is an established enterprise looking to set up long-term stability in Arlington Heights. The Class 6b incentive would allow for re-occupancy of an 18,500 square foot industrial facility, reducing industrial vacancy while allowing a new business to grow in the Village, and create additional employment opportunities. A detailed summary of the request by Bormont LLC for a Cook County Class 6b incentive is attached.
RECOMMENDATION
It is recommended that the Village Board of Trustees approve a Resolution Approving Certain Property to Participate in the Cook County Class 6b Assessment Incentive Program for Bormont, LLC for the property located at 525 W. University Drive.