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Home My WebLink AboutRESOLUTION - 30-16 - 10/11/2016 - Class 6B - 1300 Pratt RESOLUTION NO. 30-16 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 1300 PRATT 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 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 less than 24 months,that j 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 1300 Pratt Boulevard, in the Village of Elk Grove Village, Cook County, Illinois, with the Property Index Numbers 08- 34-400-004-0000, 08-34-400-005-0000, 08-34-400-017-0000, 08-34-400-018-0000, and 08-34- 400-019-0000, 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 1300 Pratt Boulevard, Elk Grove Village, Cook County, Illinois, identified by Property Index Numbers 08- 34-400-004-0000, 08-34-400-005-0000, 08-34-400-017-0000, 08-34-400-018-0000, and 08-34- 400-019-0000, 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 1 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: LOTS 10, 11, 12, 13, 14, 15, 16, AND LOT 17 (EXCEPT THE WEST 46 FEET THEREOF) IN CENTEX INDUSTRIAL PARK UNIT 22, BEING A SUBDIVISION IN SECTION 34, 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 Property Index Numbers 08-34-400-004- 0000, 08-34-400-005-0000, 08-34-400-017-0000, 08-34-400-018-0000, and 08-34-400-019- 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: j a. Improve the fagade, landscaping, and signage; b. Upgrade the sprinkler system; c. Replace concrete dock aprons and parking lot drive; d. Replace two (2) drive-in doors; e. Interior remodeling and refurbish EIFS on west side. Section 5: That this Resolution shall be in full force and effect from and after its passage and approval according to law. VOTE: AYES: 6 NAYS: 0 ABSENT: 0 PASSED this 11' day of October 2016. APPROVED this 11t' day of October 2016. APPROVED: Mayor Craig B. Johnson Village of Elk Grove Village ATTEST: Judith M. Keegan,Village Clerk 2 Exhibit"A" SPECIAL CIRCUMSTANCES SUMMARY The special circumstances related to the Applicant's instance request are associated with items specific to the property's vintage,existing conditions not within Village code and various items of physical and functional obsolescence. Although located in an advantageous location within the Village of Elk Grove, the property has an approximate weighted age of 42 years as the subject property was originally built in 1963 with an addition added in 1984.Without significant investment in upgrading building systems, fa4ade enhancement,and improvements necessary to bring the property to current Village:code standards and standards required by market participants, obsolescence will continue to accelerate. i Exeter 1300 Pratt LLC(the"Applicant")plans to purchase the property located at 1300 Pratt Boulevard, Ellk Grove Village, Illinois 60007 (PINs 08-34-400-004/-005/-017/-018/-019). The Applicant plans to rehabilitate and lease the premises on speculation to an industrial user. The subject property is developed with a 53-year old,single-story warehouse/distribution building with an addition built in 1984. The total building area is 92,368 square Feet,and the total land area is 205,772 square feet. Che property is currently occupied by ATP,Inc. ("_ATP'"},a provider of aftermarket which i replacement parts for automatic transmissions,under a lease wt is set to expire on August 30, 2016. 1'he property has been marketed for sale or for lease by Adam Stokes of Nicolson,Porter& List and the date of occupancy/availability was listed as September 1,2016. The Applicant and ATP discussed a sale/leaseback,however, ATP has identified another location and will vacate the premises at the termination of its lease term. Based on the foregoing, the subject property will be 100`ho vacant prior to the closing date,which is anticipated to be within the.next 60-90 days, however,closing is contingent on support for a Class 6b Tax Incentive. The Applicant plans to lease the subject property to an undeternuned entity or entities who will use the property for industrial purposes,as defined in the Cook County Real Property Assessment Classification Ordinance. Exeter 1300 Pratt I,I.C's, parent corporation,Exeter Property Group,is a real estate investment management Grm specializing in the acquisition,development, leasing,and management of industrial properties across the U.S and is,therefore,qualified and experienced in identifying industrial tenants and leasing speculative industrial space. The subject property is in need of substantial rehabilitation, including due to the presence of improvements below minimum code standards,obsolescence,dilapidation and deterioration; therefore, Applicant is committed to immediate improvements including an upgrade to the sprinkler system,landscaping improvements, facade enhancements,and site improvements to the pavement, including to the driveway width in order to meet code compliance. The immediate investment budget is approximately$300,000 and will include the following: • Upgrade to the sprinkler system $140,000; • El", (External Insulation and Finishing System) -$55,000 o Alternate I'll FS on West Elevation-$6,500; • Concrete-$22,000; • Windows -$10,000; • 1 andscaping(remove overgrown trees and shrubbery&general aesthetic improvements) -$15,000; • Replace two (2) drive-in doors-$9,000; • Plans tic hermits -$5,000;and • Tenant Improvement allowance-$4PS1`or$370,000. Additionally, Applicant has identified items of deferred maintenance,short term repairs and capital expenditutes that will need to be addressed over the course of its ownership. As listed above, Applicant has allocated$4,00 per square foot for tenant improvements not included hi the$300,000 immediate investment estimate. Applicant will address said interior Tenant Improvements,other than the immediate upgrade to the sprinkler system,with prospective tenants. The Applicant expects the rehabilitation of the existing improvements to begin as soon its possible after closing. The number of temporary construction jobs created as a result of the development has not been determined. 'I'he number of full-time and part-time jobs created by the proposed redevelopment of the property will be determined by the type and size of tenant that leases the property. Without the Class Gb incentive, Applicant would not move forward with the current project as stated herein and would be unable to bring the property to market. Further, the Class Gb incentive provides the necessary stimulus that affords the Applicant the security necessary to make substantial and ongoing modernization to the property. It is for these reasons that it is necessary to grant the Applicant a Resolution supporting and consenting to a Class bb Tax Incentive for the above- referenced property based on occupation of abandoned property With special circumstances,as the period of vacancy prior to the purchase will be for less than 24 continuous months,with a purchase for value and substantial rehabilitation. ]L4 ID))