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Home My WebLink AboutRESOLUTION - 15-14 - 4/8/2014 - CLASS 6B-900 LEE ST.RESOLUTION NO. 15-14 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 900 LEE STREET, 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 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 900 Lee Street, in the Village of Elk Grove Village, Cook County, Illinois, with the Property Index Numbers 08-22- 102-145-0000 and 08-22-102-146-0000, 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 900 Lee Street, Elk Grove Village, Cook County, Illinois, legally described as follows, and with the Property Index Numbers 08-22-102-145-0000 and 08-22-102-146-0000, declared eligible for Class 6B special circumstances 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: LOTS 55, 56 AND THE WEST 1.75 FEET OF LOT 57 IN HIGGINS ROAD COMMERCIAL SUBDIVISION UNIT NO. 3, BEING A SUBDIVISION IN THE WEST %2 OF SECTION 22, 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 613 tax incentives shall apply to the property identified as Permanent Real Estate Index Numbers 08- 22-102-145-0000 and 08-22-102-146-0000. 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. Resurfacing the parking lot; b. Installation of all new windows and doors on the facade; c. Remodeling the foyer; and d. Installation of landscaping. 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'" day of April 2014. APPROVED this 8'h day of April 2014. APPROVED: Mayor Craig B. Johnson Village of Elk Grove Village ATTEST: Judith M. Keegan, Village Clerk C:Iass613900Lee rt �JTHOMPSON COBURNLLP« Exhibit"A" March 26, 2014 VIA ELECTRONIC MAIL Mr. Josh Grodzin Director of Business Development & Marketing Village of Elk Grove 901 Wellington Elk Grove Village, IL 60007 PH: (847) 357-4005 Re: Revised Class 6b Eligibility Application for Special Circumstances Address: 900 Lee Street, Elk Grove Village ("Subject Property") P.I.N.(s): 08-22-102-145-0000, 08-22-102-146-0000 Township: Elk Grove Our File: 57948.130489 Dear Josh: Anita S. Mauro P 312.580.2347 F 312.782.1745 amauro@thompsoncoburn.com As you are already aware, our firm represents KLT Partners, LLC ("KLT"), with its real estate tax assessment matters. On March 7, 2014, we submitted to your attention a Class 6b Eligibility Affidavit citing a purchase for value with no "special circumstances", together with a check for $500 payable to the Village of Elk Grove. Upon KLT's discovering that the Subject Property was in fact vacant for less than 24 contiguous months, our office on behalf of KLT forwarded to your attention on March 25, 2014, a revised Class 6b Eligibility Application citing "special circumstances" for a property that is being purchased for value with less than 24 months contiguous vacancy. The Subject Property became vacant on June 30, 2012, as indicated on a vacancy affidavit that is being executed by the current owner (the "Seller") of the Subject Property and delivered to your attention. Pursuant to a purchase agreement between KLT and the Seller, the closing date for the purchase of the Subject Property shall be on or around April 26, 2014, provided all of the conditions precedent to purchase the Subject Property have been met. At the time of the anticipated closing, the Subject Property will have been vacant for approximately 22 contiguous months — only 2 months shy of the requirement for a purchase of value with no special circumstances. Based on the fact that the Seller has unsuccessfully tried to lease or sell the Subject Property since June 30, 2012, KLT has reason to believe that but for the pending sale, the Subject Property would continue to remain vacant, especially in light of the immediate costly repairs that must be made to the Subject Property as disclosed to the Village by KLT in its Class 6b Eligibility Application and supporting documentation. Dyros Inc., an Illinois corporation ("Dyros") and an affiliate of KLT, intends to lease the Subject Property from KLT. As disclosed to the Village previously, KLT currently owns two additional properties in Elk Grove Village and leases a third property from a third party. In order to keep up with current market needs, KLT must be able to purchase the Subject Property from the Seller prior to June 30, 2014. KLT and Dyros intend to immediately assess the condition of the Subject Property Thompson Coburn LLP I Attorneys at Law 155 East Monroe Street 1 37'h Floor I Chicago, Illinois 60603 P 312.346.7500 1 F 312.580.22011 www.thompsoncoburn.com March 26, 2014 Page 2 upon possession and make all necessary repairs before Dyros moves in to the Subject Property. Within a year of occupancy, Dyros intends to hire at least 3 employees to work exclusively at the Subject Property, and will hire an additional 12-17 employees to work exclusively at the Subject Property over the initial term of the Class 6b incentive. The Seller has made it abundantly clear to KLT that it would like to relieve itself of the Subject Property as soon as possible since it is only acting as a liability to the Seller as it continues to sit vacant. KLT's purchase and Dyros' occupation of the Subject Property would also benefit the Village as the Subject Property will no longer be attractive to potential "squatters" and other trespassers who are tempted to use the Subject Property for illegal purposes. In summary, on behalf of KLT and Dyros, we respectfully request your consideration to pass a resolution in support of KLT's Class 6b Eligibility Application for a purchase of value with special circumstances because: I. the Subject Property will have been vacant for approximately 22 contiguous months as of the anticipated closing date on or around April 26, 2014, 2. the Subject Property would most likely become vacant for at least 24 contiguous months if KLT does not purchase the Subject Property, 3. Dyros will be hiring 15-20 new employees to work exclusively at the Subject Property over the lifetime of the initial Class 6b incentive if granted, 4. KLT and Dyros intend to spend approximately $450,000 to improve the condition of the Subject Property over the lifetime of the initial Class 6b incentive if granted, and 5. upon KLT's purchase and Dyros' occupation of the Subject Property, the Subject Property is no longer a liability to the Seller or the Village. Please do not hesitate to contact me should you require any additional information. Again, we thank you for your consideration of KLT's Class 6b Eligibility Application. Very truly yours, Thompson Coburn LLP LAK*:&. By Anita B. Mauro cc: Mr. Kenneth Kondraros, KLT Partners, LLC (via email) A. Thomas Skallas, Esq., Thompson Coburn LLP (via email)