Ms. Mi Kyung Park is the contract purchaser of the property in question, 9 E. College Drive, consisting of one parcel of property. She is requesting Village approval for a Cook County Class 6b Property Tax Classification, upon which the purchase is contingent. She is an officer of Amerimation, a company currently based in Mundelein, which would relocate to this property upon both municipal and Cook County approval of a Class 6b designation.
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 development activities as may be authorized by the Village Board. This property has not been previously approved for a Class 6b designation and has been 100% vacant since June 2013.
If approved for the incentive, Amerimation would employ seven full-time workers and three part-time workers in Arlington Heights. The company, a warehousing operation for electronic components, plans to add 3-4 new full-time employees during the first five years of the abatement. As this does not meet the Village guideline of 25 employees, they are requesting an exemption from this requirement. The amount of property tax revenue gained from attracting the business with a Class 6b designation, as opposed to allowing the site to remain vacant, is estimated at $155,000 over the 12-year life of the abatement. Furthermore, the site has been vacant for over five years.
Ms. Park has signed an agreement to provide the Village with 10% of the 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. As previously mentioned, the purchase of the property and relocation by Amerimation to Arlington Heights is contingent upon approval of the Class 6b incentive.
Amerimation is an established and growing company looking to set up long-term stability in Arlington Heights. The Class 6b incentive would allow for re-occupancy of a 24,700 square foot industrial facility that has sat vacant for over five years, while reducing industrial vacancy and allowing a new business to locate to the Village and create additional employment opportunities. A detailed summary of the request by the applicant for a Cook County Class 6b incentive is attached.
RECOMMENDATION:
It is recommended that the Village Board approve the attached Resolution supporting the application for a class 6b tax incentive for Mi Kyung Park (Amerimation, inc.) for the property located at 9 E. College Drive.