Drew Enterprises LLC is requesting Village approval for a Cook County Class 6b Property Tax Classification renewal relative to 2636-2638 S. Clearbrook Drive, consisting of one parcel of property. The site has been occupied by two tenants, Boyer-Rosene and CDS Moving Equipment, since 2008. The property was previously approved for an initial Class 6b designation in 2005, in order to construct the two facilities currently occupied by each tenant. The following is a summary of key items:
1. Cumulatively, the companies employ 44 workers (42 of which are full-time), which meets Village guidelines of employing at least 25 workers at the applicable property. However, plans call for minimal employment growth, adding only 4-5 more employees during the incentive renewal period.
2. Overall property investment is minimal, estimated at $117,000 for normal maintenance that involves the resurfacing of the parking lot and installation of LED lighting.
3. In February 2017, the Village Board discussed overall Class 6b usage in Arlington Heights and decided that continued use of the program with no limits on renewals was appropriate.
4. It has been presented by the Petitioner that, in order to retain these two businesses, a Class 6b property tax abatement renewal is needed. It is unknown if the businesses would necessarily relocate. However, a lease amendment provided to Staff dated 11/23/15 states that CDS Moving Equipment may terminate the lease if a Class 6b incentive is not granted.
5. The property owner has signed a Zero Interest Loan agreement to rebate the Village 10% of savings over the first five years of the renewal. This is estimated to be approximately $75,000 total over the course of five years to go towards to the Zero Interest Loan program or other economic development activities as approved by the Village. This would potentially provide benefits to other Arlington Heights businesses.
Boyer-Rosene and CDS Moving Equipment are established enterprises looking to continue operations in Arlington Heights. The Class 6b renewal would allow for continued occupancy of two 30,000 square foot facilities, inhibiting an increase in industrial vacancy. A detailed summary of the request by Drew Enterprises LLC for a Cook County Class 6b incentive is attached.
RECOMMENDATION
It is recommended that the Board of Trustees adopt 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 the property located at 2636-2638 S. Clearbrook Drive.