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HomeMy WebLinkAboutRESOLUTION - 66-21 - 12/14/2021 - Class 6B, 1355 Greenleaf AvenueRESOLUTION NO.66-21 A RESOLUTION DETERMINING THE APPROPRIATENESS FOR CLASS 611 STATUS PURSUANT TO THE COOK COUNTY REAL PROPERTY CLASSIFICATION ORDINANCE AS AMENDED JULY 27, 2018 FOR CERTAIN REAL ESTATE LOCATED AT 1355 GREENLEAF AVENUE, ELK GROVE VILLAGE, ILLINOIS WHEREAS, the Village of Elk Grove Village desires to promote the development of industry in the Village of Elk Grove; and WHEREAS, the Cook County Assessor is operating under an ordinance enacted by the Cook County Board of Commissioners, and amended from time to time, the most recent amendment becoming effective as of July 27, 2018, which has instituted a program to encourage industrial and commercial development in Cook County known as the Cook County Real Property Classification Ordinance; and WHEREAS, in the case of abandoned property, if the municipality or the Mayor and Board of Trustees, finds that special circumstances justify finding that the property is "abandoned" for purpose of Class 613, even though it has been vacant and unused for less than 24 months, that finding, along with the specification of the circumstances, shall be included in the resolution or ordinance supporting and consenting to the Class 613 application. Such resolution or ordinance shall be filed with the eligibility application. If the ordinance or resolution is that of a municipality, the approval of the Board of Commissioners of Cook County is required to validate such shortened period of qualifying abandonment, and a resolution to that effect shall be included with the Class 6B eligibility application filed with the Assessor; and WHEREAS, the Petitioner has applied for or is applying for Class 613 property status pursuant to said aforementioned ordinance for certain real estate located at 1355 Greenleaf Avenue, in the Village of Elk Grove Village, Cook County, Illinois, with the Property Index Number 08-34-202-015-0000, and has proven to this Board that such incentive provided for in said ordinance is necessary for development to occur on this specific real estate. NOW, THEREFORE, BE IT RESOLVED by the Mayor and Board of Trustees of the Village of Elk Grove Village, Counties of Cook and DuPage, Illinois: Section 1: That the request of the Petitioner to have certain real estate located at 1355 Greenleaf Avenue, Elk Grove Village, Cook County, Illinois, identified by Property Index Number 08-34-202-015-0000, declared eligible for Class 6B special circumstances status pursuant to the Cook County Real Property Classification Ordinance as amended July 27, 2018, is hereby granted in that this Board and the Village of Elk Grove Village, Illinois, has determined that the incentive provided by the said Class 6B Tax Incentive Ordinance is necessary for the said development to occur on the subject property, legally described as follows: LOT 89 IN CENTEX INDUSTRIAL PARK UNIT 59, A SUBDIVISION IN SECTION 34, TOWNSHIP 41 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS Section 2: That the Special Circumstances as outlined by the petitioner are attached hereto as Exhibit "A" and made a part thereof. Section 3: That the Village of Elk Grove Village, Illinois hereby supports and consents to the Class 6B Application and approves the classification of the subject property as Class 6B property pursuant to the Cook County Real Property Classification Ordinance and the Class 6B tax incentives shall apply to the property identified as Permanent Real Estate Index Number 08- 34-202-015-0000. Elk Grove Village is in receipt of an economic disclosure statement that is required with the application packet. Section 4: That the Mayor and Village Clerk are hereby authorized to sign any necessary documents to implement this Resolution subject to the petitioner completing the following conditions within twelve months of closing: a. Property acquisition; b. Fagade updates; c. Parking lot reconstruction with detention; d. Landscaping enhancements; e. Interior buildout and process line build out. Section 5: That this Resolution shall be in full force and effect from and after its passage and approval according to law. VOTE: AYES: 6 NAYS: 0 ABSENT: 0 PASSED this 14th day of December 2021. APPROVED this 14th day of December 2021. APPROVED: Mayor Craig B. Johnson Village of Elk Grove Village ATTEST: Loretta M. Murphy, Village Clerk Exhibit "A" THE LAW OFFICES OF LISTON & TBANTILIS A PROFESSIONAL CORPORATION 33 NORTH LASALLE STREET, 28TH FLOOR CHICAGO. ILLINOIS 60608 BRIAN P. LISTON (312) 580-1594 PETER TSANTILIS (318) 604-SM FACSIMILE (312) 580-1598 Special Circumstances 1355 Greenleaf Avenue, Elk Grove Village, IL 60007 PIN:08-34-202-015-0000 1355 Greenleaf KT LLC (the "Applicant") will be the title holder of the above referenced property (the "Subject Property"), and is requesting a Resolution from Elk Grove Village supporting and consenting to a Class 6b Tax Incentive for the Subject Property based on re - occupancy of vacant property for less than 12 continuous months vacancy with a purchase for value, special circumstances and substantial rehabilitation. The current occupant is in a wind - down period, and the Subject Property will be 100% vacant and unused at the transfer of title. The Applicant is already located on the street, at 1225, 1401 and 1455 Greenleaf. The Subject Property is approximately 48 years old and currently consists of an approximately 40,031 square foot industrial building located on an 80,000 square foot site. The Applicant plans on leasing the property to a related entity, Magnetic Inspection Laboratory, Inc (the "Occupant' or "MIL"). The Subject Property is situated between MIL's facilities at 1225 to the West and 1401 & 1455 to the East. The way the Subject Property is situated makes it extremely desirable to the Applicant based on its proximity to its other units. As a result, the special circumstances exist which make the property extremely desirable to the Applicant, but less desirable to new businesses, or businesses without a foothold in the Village. Further, MIL has plans to eventually expand into next -door 1335, to complete its expansion on Greenleaf. However, the Subject Property is almost 50 year old and quickly deteriorating. In order for the Applicant to occupy and operate, it will need to spend over $1,000,000 on parking lot repairs, office buildout, restroom and lunchroom buildouts and significant fagade and landscaping work so that the Subject matches that of the surrounding buildings. Additionally, the Subject Property has been vacant for less than 12 continuous months. The current owner of the Subject Property is in a wind -down period, and the facility will be 100% vacant and unused at closing. Without the incentive with special circumstances, the property is likely to sit vacant and unused until it hits 12 continuous months vacancy required for the incentive without special circumstances. Based on the increasing Cook County tax burden, industrial properties without a tax incentive are at a distinct disadvantage, especially in Elk Grove Village. The 2021 effective tax rate of 26.7% and Cook County's 25% level of assessment for Industrial properties puts a massive strain on any developer or tenant interested in the Property. By allowing the property to sit vacant for the additional months needed for reoccupation without special circumstances, the Village could lose over $20,000 of property tax revenue for 2021, and miss out on approximately $211,875 in additional Village revenue generated by the proposed 50 new employees. Lastly, due to the unforeseen circumstances and financial troubles posed by the COVID-19 Virus, the Applicant needs the assistance and savings from the 6b tax incentive in order to substantially rehabilitate the property and continue its expansion in the Village.