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HomeMy WebLinkAboutRESOLUTION - 16-22 - 2/22/2022 - Class 6B, 1301 Jarvis AvenueRESOLUTION NO. 16-22 A RESOLUTION DETERMINING THE APPROPRIATENESS FOR CLASS 6B STATUS PURSUANT TO THE COOK COUNTY REAL PROPERTY CLASSIFICATION ORDINANCE AS AMENDED JULY 27, 2018 FOR CERTAIN REAL ESTATE LOCATED AT 1301 JARVIS 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 6B, 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 6B 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 1301 Jarvis Avenue, in the Village of Elk Grove Village, Cook County, Illinois, with the Property Index Number 08-27-400-073-0000, 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 1301 Jarvis Avenue, Elk Grove Village, Cook County, Illinois, identified by Property Index Number 08-27-400-073-0000, 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: THAT PART OF THE WEST 1/2 OF THE NORTH WEST 1/4 OF SECTION 32, TOWNSHIP 41 NORTH, RANGE 11 EAST OF THE THIRD PRINCIPAL MERIDIAN, COMMENCING AT THE INTERSECTION OF THE CENTER LINE OF THE STATE ROAD AND SOUTH STREET, THENCE SOUTH ON THE CENTER LINE OF THE STATE ROAD 2 1/2 CHAINS, THENCE WEST 2 CHAINS; THENCE NORTH 2 1/2 CHAINS TO THE CENTER LINE OF THE STATE ROAD AND SOUTH STREET, THENCE EAST ON THE CENTER LINE OF SOUTH STREET 2 CHAINS TO THE PLACE OF BEGINNING ALL 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 08-27-400-073-0000. 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. Upgrade the fagade; b. Update landscaping; c. Interior/exterior build out; d. Reconstruct the dock drive and apron per Village standards as needed; e. Resurface and seal coat the parking lot and drive as necessary; f. Installation of metal or composite panels over existing brick, and various other renovations. 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 22"d day of February 2022. APPROVED this 22"d day of February 2022. APPROVED: Mayor Craig B. Johnson Village of Elk Grove Village ATTEST: Loretta M. Murphy, Village Clerk C. -, "Exhibit A" Saecial Circumstances 1301 Jarvis Avenue, Elk Grove Village, IL 60007 PIN: 08-27-400-073-0000 1301 Jarvis LLC (the "Applicant") is the contract -purchaser 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 Substantial Rehabilitation and Re -Occupation of Abandoned Property with a purchase for value, Special Circumstances & Substantial Rehabilitation. The Subject Property currently consists of an approximately 5,690 square foot industrial facility, sited on approximately 15,400 square feet of land. The property was constructed in 1980 and features 13' clear height, one (1) loading dock, and one (1) drive in door. A number of Special Circumstances exist for this property. First, the Subject Property has not been vacant for 12 continuous months; however, the facility has been 100% vacant and unused since Carr Machine & Tool on July 21, 2021. Without the incentive with special circumstances, the property will almost certainly sit vacant until late July, at which time the property would be eligible for the incentive without special circumstances. By allowing the property to sit vacant until the year vacancy mark will delay renovations and build -out until sometime near the end of 2022, with occupancy occurring sometime in 2023. As a result, the property will receive substantial vacancy relief, significantly lowering taxes as well as potential employment and other economic and societal benefits resulting from the re -occupation. The property has also had multiple potential deals fall through in the preceding months, some of which related to the increasing property taxes. 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 2020 effective tax rate of 24.35% and Cook County's 25% level of assessment for Industrial properties puts a massive strain on any developer or tenant interested in the Property. As indicated above, the property is over 40 year of age and quickly deteriorating, both in terms of efficiency and in terms of appearance. The property also only features a clear height of 13', which is too low for a number of modem industrial users. Fortunately for the Applicant, the size and layout of the property will work synergistically with the nature of the industrial use. Next, passing the tax incentive also allows the current owner of the property to divest itself of the asset, allowing the Applicant to begin improvements at the Subject Property, and the Seller to finish build -out and re -occupation on its own new Elk Grove property, Lastly, due to the unforeseen circumstances 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. In order to get the property ready for operations, the Applicant will be required to spend over $250,000 on repairs, renovations, new systems and code issues. With the inevitable economic slowdown, increasing inflation, rising material costs and potential of a next wave of the virus, the Applicant will be unable to close and renovate the Subject Property, and may be required to look outside of the particular municipality, County or State for relief.