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HomeMy WebLinkAboutRESOLUTION - 51-19 - 9/10/2019 - Class 6B 1331 BrummelRESOLUTION NO.51-19 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 1331 BRUMMEL 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 6B property status pursuant to said aforementioned ordinance for certain real estate located at 1331 Brummel Avenue, in the Village of Elk Grove Village, Cook County, Illinois, with the Property Index Number 08-27-202-077-0000, 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 1331 Brummel Avenue, Elk Grove Village, Cook County, Illinois, identified by Property Index Numbers 08-27-202-077-0000, 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 1 IN KRUTEDAWS SUBDIVISION OF LOT 188 IN HIGGINS INDUSTRIAL PARK UNIT 130 BEING A SUBDIVISION IN THE NORTHEAST 1/4 OF SECTION 27, 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 Numbers 08- 27-202-077-0000. 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 concrete parking lot and front walk; b. New roof, replace front windows, and re -brick the fagade; c. Add signage and decor to fagade; d. Remove front parking space and replace with landscaping and tuck -point as needed. 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 loth day of September 2019. APPROVED this loth day of September 2019. ATTEST: Loretta M. Murphy, Village Clerk APPROVED: Mayor Craig B. Johnson Village of Elk Grove Village 2 EXH____LBIT A SARNOFF • BAccASH P R O P E R T Y T A X L A W Special -circumstances requested by Rmnar Holdings. LLC or another entity to be named 1331 Brummel St- Elk Grove Village. Illinois (PIN: 08-27-2 -077-000) Ragnar Holdings, LLC, or another entity to be named ("Applicant"), is requesting a Resolution in support and consent of a Class 6b Incentive on the above -referenced property based on occupation of an abandoned property that has been vacant for less than 24 continuous months with a purchase for value, special circumstances and substantial rehabilitation. The Applicant plans to purchase the subject property and rehabilitate the same for its related entity, Cristaux, Inc., to occupy for its operations consisting of the light manufacturing, warehousing and distribution of custom recognition awards. The subject property consists of an approximately 14,949 square foot site with a roughly 5,000 square foot building that will be 100% vacant and unused prior to purchase. The subject property is in need of substantial rehabilitation. Therefore, the Applicant plans to spend approximately $195,000 to $210,000 to immediately rehabilitate the subject property. Based on initial inspections these improvements will be to add a new parking lot and front walkway, install a new roof, improve the fagade, replace exterior windows, add new signage and add landscaping as well as to complete other general maintenance. Note that tuckpointing will likely need to be completed and there will be improvements made to the interior. In addition, please note that all of the rehabilitation costs could significantly vary depending on a variety of factors such as market variances. Further inspections of the subject property may require additional improvements. The rehabilitation will create approximately 10 to 20 construction jobs. Cristaux, Inc. currently occupies the approximately 13,000 square foot property next door to the subject property located at 1343 Brummel St. Cristaux, Inc. is growing, and therefore, plans to expand its uperaions by remaining at its current location as well as moving and increasing its warehousing at the subject property. Currently, Cristaux, Inc. has 24 employees (20 full-time; 4 part-time). Approximately 1 to 4 of the current employees will come to the new site. In addition, and depending on growth, Cristaux, Inc. plans on adding approximately 2 to 5 employees in the next 1 to 3 years. Additionally, Cristaux, Inc. will look to hire all qualified Elk Grove Village residents for future hires. Elk Grove Village can also expect that Cristaux, Inc. and its employees will continue to invest commercially back into the community by visiting local establishments such as restaurants, gas stations, grocery stores and more. In addition, Elk Grove Village can expect that Cristaux, Inc. will continue attract business and various customers to the Village in the course of its operations. Based on our research and the additional costs that must be incurred to 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 in support and consent of a Class 6b Incentive for the subject property based on occupation of an abandoned property that has been vacant for less than 24 continuous months with a purchase for value, special circumstances and substantial rehabilitation.