The owner of the property at 3602 N. Kennicott Avenue is requesting Village approval for a Cook County Class 6b Property Tax Classification renewal for the property. The site has received two previous Class 6b designations, encompassing initial approval in April 1999, and a renewal in February 2008.
The Class 6b abatement is being requested in order to permit the existing tenant, Arens Controls (a division of Curtiss-Wright Industrial Group), to grow within the facility and invest in the property. 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.
Arens Controls has been located at this particular site since 2008. The company employs 79 full-time workers, with plans to add as many as 75 new full-time employees in Arlington Heights in the next ten years. The company anticipates having a continued positive financial impact on the Village. Both existing and current employees will provide direct and indirect spending to Village businesses. Additionally, the property ownership plans to spend $233,000 on building improvements in order to retain Arens Controls. This involves upgrading the facility’s electricity to 1,200 amps, replacing the antiquated rooftop HVAC units, and renovating the site’s parking lot.
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 $1.42 million 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.
Arens Controls is a large, established enterprise looking to grow in Arlington Heights. The Class 6b incentive would allow for continued occupancy of a 94,300 square foot industrial facility, helping minimize industrial vacancy while allowing a business to grow in the Village and create additional employment opportunities. A detailed summary of the request by Cabot IV-IL1W08, LLC for a Cook County Class 6b incentive is attached.
RECOMMENDATION
It is recommended that the Village Board approve the attached Resolution Approving Renewal of Industrial Real Estate Tax Incentive for Certain Real Estate in the Village of Arlington Heights, Cook County, Illinois for Cabot IV-IL1W08, LLC for the property located at 3602 N. Kennicott Avenue.