Prima Power North America Inc. is requesting Village approval for renewal of a Cook County Class 6b Property Tax Classification Renewal relative to 555 W. Algonquin Road, consisting of two parcels of property. The site is occupied by one tenant, Prima Power, which moved to the property in 2008, operating as Finn-Power before being purchased by another company and renamed “Prima Power”. 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.
Prima employs 34 full-time workers today and may add as many as eight more during the life of the incentive. This exceeds the Village’s employment requirement. The applicant also expects to have a positive financial impact on the Village. Both existing and future Staff will provide direct and indirect spending to Village businesses. Also, the business brings about 1,100 visitors from outside the Chicago region annually, the great majority of which stay for one-to-two weeks in Arlington Heights for training and/or demonstrations. This results in additional hotel taxes, sales taxes, and food & beverage taxes for Arlington Heights.
Furthermore, the amount of property tax revenue gained from retaining the businesses with a Class 6b designation, as opposed to allowing the site to become vacant, is estimated at $290,000 over the incentive period, 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 or other economic programs.
Prima Power 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 a 51,000 square foot industrial facility, while allowing the business to grow in order to create additional employment opportunities. A detailed summary of the request by Prima Power 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 Incentive for Certain Real Estate in the Village of Arlington Heights, Cook County, Illinois.