HomeMy WebLinkAboutJPZ - 04/29/2011 - CLASS 6B APPLICATION FEE Elk Grove Village
JPZ Committee Meeting
Friday, April 29, 2011
1:00 pm
JPZ Members Present: Sam Lissner, Village Trustee, Chairman
Jeff Franke, Village Trustee
Chris Prochno, Village Trustee
Staff: Josh Grodzin,Director Business Development & Marketing n. n
Guest: Giovanni Gullo, Gullo International Development Corporation
CHARGING AN APPLICATION FEE FOR PROCESSING CLASS 6B TAX ABATEMENT
APPLICATIONS
Chairman Lissner explained that the purpose of the meeting is to continue discussing the
implementation of a fee to be paid by applicants seeking a Cook County Class 6B Tax
Abatement.
Grodzin passed out information that was requested at the close of the last JPZ meeting held on
Tuesday, January 25, 2011. Handouts included a spreadsheet on how much a company saves
with a 6B versus without and how many 6Bs neighboring communities process in a year.
Lissner opined that the purpose of the fee is to cover Village processing costs and should not be
construed as a burden placed on business. Lissner suggested that if an applicant submitted
documentation of job creation and completed building improvements, the applicant could get a
refund of all or a portion of the fee.
Franke stated that a fee is not a source of revenue for the Village rather a way to cover staff time
and administrative costs. Additionally, a fee of$500 is reasonable based on what neighboring
communities charge, Village administrative time, and the savings in tax dollars experienced by
the applicant.
Gullo opined that the Village should leave open the option of renewing 6Bs and that 6Bs are
critical in attracting business. Gullo suggested that different rates should be set based on the size
of the building in the application. For example, the Village could charge $500 for buildings
under 50,000 square feet and $1,000 for buildings over 50,000 square feet.
Prochno stated that the Village charges fees in several areas and that this fee would cover staff
time. Prochno also asked if fees are refundable should an application be denied.
Lissner concluded the meeting by stating that the committee would present two options to the
full Village Board for consideration:
A. Charging $500 for buildings under 50,000 square feet and $1,000 for buildings
over 50,000 square feet
B. Charging a flat fee of$500 to all applicants regardless of building size
The meeting adjourned at 2:00 pm
Respectfully submitted by Josh Grodzin, Director of Business Development and Marketing
c: Mayor & Board of Trustees, Village Manager, Deputy Village Manager, Village Clerk