HomeMy WebLinkAboutRESOLUTION - 14-14 - 4/8/2014 - CLASS 68-2500 DEVONRESOLUTION NO. 14-14
A RESOLUTION DETERMINING THE APPROPRIATENESS FOR CLASS 6B STATUS
PURSUANT TO THE COOK COUNTY REAL PROPERTY CLASSIFICATION
ORDINANCE AS AMENDED JULY 17, 2013 FOR CERTAIN REAL ESTATE LOCATED
AT 2500 DEVON 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 17, 2013, 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 more than
12 months and there has been no purchase for value, 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 that the property is deemed
"abandoned" for purposes of the incentive, and a resolution to that effect shall be included with
the Class 6Beligibility application filed with the Assessor; and
WHEREAS, the Petitioner has applied for or is applying for Class 6B property status
special circumstances pursuant to said aforementioned ordinance, for certain real estate located
at 2500 Devon Avenue, in the Village of Elk Grove Village, Cook County, Illinois, with the
Property Index Numbers 08-35-404-068-0000, 08-35-404-069-0000, 08-35-404-070-0000, and
08-35-404-071-0000, 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 2500
Devon Avenue, Elk Grove Village, Cook County, Illinois, legally described as follows, and
with the Property Index Numbers 08-35-404-068-0000, 08-35-404-069-0000, 08-35-404-070-
0000, and 08-35-404-071-0000, declared eligible for Class 613 status pursuant to the Cook
County Real Property Classification Ordinance as amended July 17, 2013, 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:
THE WEST 150.10 FEET OF THE EAST 817.40 FEET OF THE SOUTH 400 FEET OF
LOTS 138 TO 146 IN CENTEX INDUSTRIAL PARK UNIT NUMBER 11, A
SUBDIVISION IN SECTION 35, TOWNSHIP 41 NORTH, RANGE 11 EAST OF THE
THIRD PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS; and
THE WEST 150 FEET OF THE EAST 667 FEET OF THE SOUTH 400 FEET OF LOTS
138 TO 146 IN CENTEX INDUSTRIAL PARK UNIT NUMBER 11, A SUBDIVISION
IN SECTION 35, TOWNSHIP 41 NORTH, RANGE 11, EASAT OF THE THIRD
PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS; and
THE WEST 150 FEET OF THE EAST 517 FEET OF THE SOUTH 400 FEET OF LOTS
138 TO 146 IN CENTEX INDUSTRIAL PARK UNIT NUMBER 11, A SUBDIVISION
IN SECTION 35, TOWNSHIP 41 NORTH, RANGE 11, EAST OF THE THIRD
PRINCIPAL MERIDIAN, IN COOK COUNTY, ILLINOIS; and
THE WEST 100 FEET OF THE EAST 367 FEET OF THE SOUTH 400 FEET OF LOTS
138 TO 146 IN CENTEX INDUSTRIAL PARK UNIT NUMBER 11, A SUBDIVISION
IN SECTION 35, 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 613
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
08-35-404-068-0000, 08-35-404-069-0000, 08-35-404-070-0000, and 08-35-404-071-0000.
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. Fagade improvements as outlined on the plan prepared by Lee & Associates dated
March 3, 2014;
b. Landscape screening along Devon Avenue as depicted on the submitted landscape plan;
c. Installation of new signage;
d. Installation of loading dock equipment and steel support system to the structure of the
building; and
e. Rehabilitation of the property's plumbing system, fire protection system, HVAC system
and electrical system.
Section 5: That this Resolution shall be in full force and effect from and after its passage
and approval according to law.
VOTE: AYES: 5 NAYS: 0 ABSENT: 1
PASSED this 8`h day of April 2014.
APPROVED this 8'' day of April 2014.
APPROVED:
Mayor Craig B. Johnson
Village of Elk Grove Village
ATTEST:
Judith M. Keegan, Village Clerk
Class682500bevon
T_HG LAW OFFIOES OF
Exhibit "A"
L,ISTQN;�Bi �TSA7VTILI9
A P.ROFF. ZONAL CORPORATION
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83 NORTH IIASALLE'STREET. 2ATII,FLOOR CHICAGO.ILLINOIS'00602'
,BRIAN -P. LISTON'(312) 580-15u4 PETER TSANTII.18 (312) 604-3808 FACSIbn LE -(312) 5A0-1584,
Since 2006, Cabot II — ILI WO1, LLC (the "Applicant") has owned the property located at
2500',2540 East Devon Avenue in Elk Grove Village (P.[Ns: 08-35-404-068, 08-35-404-069,'08-
35-404-070 and`69-35-404-071). The Applicant plans to lease'the,subject;prbperty'to an
unrelated entity, Atlas SN, ,Inc. (`tAtlas" )` for its use.as a premier 'third; pa y� logistics provider.
The subject property consists of an approximately 68,742 square,foot building on a
roughly 220,160 square foot site. Due to its locaiion across the street from DuPage'County
(which has taxes similar to a Class 6b Tax Jncentive), the Applicant has been struggling,to obtain
tenants for the property. The site has`been 100% vacant and unused since February 7, 2063 and
was significantly vacant for at least four years before February 7, 2013. This vacancy breaks
down to the following:
Between approximately December 2008 and October.,2010, approximately
53.12% oftksublect piopefty wasvacantwith the tenants'being4SJBS
Automotive (leasing approximately 5,303 square feefofthe,building) and
American Airport Limo (leasing approximately 26;926 sgba!'re;feet ofthe
building).
Between approximately November 2010 and June 2011, approximately 20.24% of
the subject property was vacant with the tenants being SJBS Automotive (leasing
approximately 5,303 square feet of the build ing),.American Airport Limo (leasing
approximately 26,926 square feet of the building) and Wigdahl (leasing
approximately 22,661 square feet of the building).
•_' Between approximately July 2011'and June 2012, approximately 2795% of the
subject property was vacant with the tenants being American Airport Limo
(leasing apprbximately26,926 Auare_feet of the building) and-Wigdahl (leasing
approximately 22,601 square, feet ofthe building).
,Between, approximately July 2012,and February'7, 2013, approximately roximatel 67.12% r
P, .
of the subject,propertywas'vacant'with the tenant being`Wigd.ahl (leasing
approximately 22,601 square feet ofsthe building). f
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e Since February 7, 2013, the subject property has been 100% vacant and unused.
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TIIF I.A1Y!)FTICFA OF
LISTON & TSANTILIS
Since it began its ownership of the property in 2006, the Applicant has made substantial
renovations to the property. These improvements.include, but are not limited to painting the
property's interiors and exteriors, improving the property's tuck pointing, renovating the
property's parking lot, replacing the property's HVAC system and renovations to the property's
warehouses and offices. Collectively, these improvements were approximately $223,400. A
further breakdown of this $223,400 will be provided shortly.
Even with these improvements, due to the,property's substantial and chronic vacancy,
significant improvements will need to be made to the silc'to,make it suitable for Atlas's use.
Atlas has budgeted approximately $332,971 to make these improvements, which include but are
not limited to the remodeling -'the building's exterior; repairing the office's rbdf; installing a steel
support system to the structure of the building; repaving the driveway; installation of loading
dock equipment; rehabilitating the property's plumbing system, fire protection system, HVAC
system and electrical system; installing new landscaping and signage; and upgrading the
property's warehouse floors. The Applicant expects these improvements to bring�approximatciy
35 construction jobs to the community. They also expect this rehabilitation and beautification of
the subject property to make it a welcome addition to the new modernized Elk Grove industrial
Park.
Atlas has been located within the Village since March 2005 (or approximately nine years)
and is currently is located at 1901 Pratt Boulevard in Elk Grove Village (PIN: 08735-302-002). It
has outgrown this property, which consists of an approximately 40,000 square foot building on
an approximately 178.814 site. To accommodate its growing business, Atlas plans to transfer its
entire operations to the subject property, including all oG�its approximately 136 employees.
With its growing business, Atlas will need to grow'its operations including its workforce.
It plans to hire approximately 20 to 30 additional employees to work at the subject property
within the next few years. Atlas will look to hire qualified Elk Grove Village residents for these
and other future hires. To accomplish this goal, it would like to advertise these employment
opportunities with the Village of Elk Grove and attend Village of Elk Grove job fairs.
As a minority-owned business and an equal opportunity.employer, Atlas strongly
believes the key to its success has been its diverse and talented team of employees. Its company
culture promotes integrity and diversity and Atlas treats each employee as a brand ambassador,
responsible for upholding the values of its organization. Atlas suives to provide its employees
With an exciting environment with opportunities Tor professional and personal growth. For more
information regarding Atlas, please visit its website at htto://www.atlaissn.com.
As stated above, Atlas plans to strengthen its ties with the Village by relocating its
operations to the subject property; however, without a Class 6b Tax Incentive for the subject t
properly, Atlas does not believe it will be financially feasible for -it to relocate.its expanding r;
operations to site. It will otherwise be forced to look to properties with a lower tax burden, such '
as properties outside of Cook County or properties within Cook County with a Class 6b Tax
incentive:
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It is for these reasons that it is necessary to grant the Applicant a Resolution supporting
and consenting to a Class 6b Tax Incentive for the above -referenced property based on
occupation of abandoned property for greater than 12 months continuous vacancy under the new
Cook County Temporary Emergency Economic Recovery Modification Program ("TEERM")
without a purchase for value but with special circumstances.
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