Arlington Heights1, LLC is requesting approval for a Cook County Class 6b Property Tax Classification relative to 703-709 W Algonquin Rd, consisting of four parcels of property.  In order to be able to develop a modern warehouse/distribution facility of 330,000 square feet, a Class 6b designation is being requested.  As the development is being completed in two phases, the applicant is requesting two separate resolutions in order to account for each phase.  This specific resolution references the first phase, which consists of the first 140,000 square feet of building space.

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 or other economic programs.  The applicant is the property owner and will not be occupying the building, but rather, leasing to prospective tenants.  If approved by the Village Board and Cook County, each property tax abatement will not take effect until tenants occupy at least 50% of the square footage of the each phase.

The applicant expects to have a positive financial impact on the Village. The owner/developer is conducting a redevelopment of approximately $13 million (with $5.85 million dedicated to the first phase) to the site.  This will increase the long-term value and viability of the property.  In addition to the taxes generated, new tenants will increase employment within the Village.  Based upon other facilities owned by Arlington Heights1’s parent company (Hamilton Partners), they estimate that the completed facility should serve approximately 130 workers (assuming approximately 65 workers for each phase).  Furthermore, the facility at 703-709 W. Algonquin has been completely vacant the past several years, while the facility at 715-723 W. Algonquin is currently only 50% occupied.  Lastly, 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.

Hamilton Partners has a long track record of managing and redeveloping commercial and industrial properties.  The Class 6b incentive would allow for the revitalization of a property struggling with long-term vacancy and bringing the first newly developed spec industrial building to Arlington Heights since the last recession.  A detailed summary of the request by Arlington Heights1, LLC 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 703-709 W Algonquin Road.