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HomeMy WebLinkAboutRESOLUTION - 21-23 - 4/25/2023 - 951 NICHOLAS BOULEVARD, CLASS 6BRESOLUTION NO. 21-23 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 951 NICHOLAS BOULEVARD. 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 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 6B property status pursuant to said aforementioned ordinance for certain real estate located at 951 Nicholas Boulevard, in the Village of Elk Grove Village, Cook County, Illinois, with the Property Index Numbers 08-26-309-020-0000 and 08-26-309-022-0000, 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 l: That the request of the Petitioner to have certain real estate located at 951 Nicholas Boulevard, Elk Grove Village, Cook County, Illinois, identified by Property Index Numbers 08-26-309-020-0000 and 08-26-309-022-0000, 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: THE SOUTH 21.61 FEET (AS MEASURED ON THE WEST LINE THEREOF) OF LOT 22 AND LOT 23 IN CENTEX INDUSTRIAL PARK NORTH UNIT 9, BEING A SUBDIVISION IN SECTION 26, TOWNSHIP 41 NORTH, RANGE 11, EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF REGESTERED ON OCTOBER 23, 1968, AS DOCUMENT NUMBER 2417469, 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 Numbers 08- 26-309-020-0000 and 08-26-309-022-0000. 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. New fagade on the west elevation; b. Remove existing drive-in door and replace all windows; c. Replace front entry door and dock door; d. New signage and LED accent light fixtures; e. New landscaping and exterior accent lighting; f. Reconstruction of existing parking and install new concrete dock drive and aprons; and g. Clean out rear drainage ditch. Section 5: That this Resolution shall be in full force and effect from and after its passage and approval according to law. VOTE: AYES: 4 NAYS: 0 ABSENT: 1 PASSED this 25th day of April 2023. APPROVED this 2511 day of April 2023. APPROVED: Mayor Craitz B. Johnson Village of Elk Grove Village ATTEST: Loretta M. Murphy, Village Clerk T73E LAW OFFIORB OH' Exhibit A LISTON & TSANTILIS A PROVESMONAL CORPORATION 33 NORTH I.ASALLE STREET, 28T1I FLOOR CHI0AG0. IIJAW43I8 SOW2 BRIAN P. 1AST014 (312) 580-1694 PETER TSANTI AS (312) 604-3808 H'ACS L.R (312) 580-15" Special Circumstances 951 Nicholas Blvd., Elk Grove Village, Illinois 60007 PINs: 08-26-309-020/022-0000 The property located at 951 Nicholas Blvd., Elk Grove Village, Illinois is approximately 49 years old and consists of a 17,380 square foot industrial warehouse located on a 39,204 square foot site. The facility itself has 2 high door loading docks and 2 drive in loading docks. The Subject Property was last occupied by Perma-Seal Basement Systems. Perma-Seal began winding down its business at the site around December 16, 2022. The property has been 100% vacant and unused since approximately March 15 of 2023 and will be vacant through closing. The property will continue to remain vacant until July of 2023. Being nearly 50 years old, the Subject Property is quickly deteriorating. The Applicant has bids to initially invest approximately $350,000-$500,000 into the exterior of the property, alone. Some of these improvements consist of reconstructing the entire parking lot and driveways, redesigned landscaping, new signage, fagade improvements consisting of new exterior cladding to the front fagade of the building as well as replacement of all windows, replacement of front entry doors, and new accent lighting. The Applicant also plans to make significant investments into the interior of the building, Once the Applicant closes on the property, it will make any necessary repairs or improvements, and plans to reinvest its tax savings back into further upkeep and maintenance of the facility. After the acquisition, improvements and reoccupation, the Subject Property would have a projected full market value of approximately $1,750,000, which would generate an estimated $647,245 (or approx.. $53,937 per year) in total taxes over the life of the Class 6b Tax Incentive. Without the incentive, and at full vacancy, the property will continue to deteriorate and have a market value of $531,326 which would generate $418,170 (or approx.. $34,847 per year) over 12 years. Therefore, should the Class 6b be approved, the Subject Property would generate an additional approximately $229,076 in real estate taxes over the life of the Class 6b Tax Incentive. In addition to increased property tax revenues, the eventual user's presence will significantly benefit the local community. Employees working at the Subject Property will frequent Village restaurants, gas stations, stores and more. They will also attract both new and returning customers who will frequent nearby establishments. According to the attached Employee Economic Impact Chart, a projected 35 full-time employees are estimated to spend approximately $148,313 per year in the Village on gas, entertainment, groceries, etc. Including the increased property tax revenue, the project will generate a total of approximately $377,389 in additional Village revenue over the life of the incentive. Based on our research and the additional costs that must be incurred to improve and rehabilitate the building, in order for this to be a successful endeavor, the Applicant must possess a Class 6b Incentive to complete the improvements and to successfully operate the property. It is for these reasons that it is necessary to grant the Applicant a Resolution supporting and consenting to a Class 6b Incentive for the subject property based on occupation of a property that has been vacant for less than 24 continuous months with a purchase for value, special circumstances and substantial rehabilitation.