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Home My WebLink About95-102 Resolution No. 95-102 RESOLUTION DETERMINING THAT CERTAIN REAL ESTATE LOCATED ALONG WOODVIEW DRIVE IS APPROPRIATE FOR CLASS 6B COOK COUNTY REAL PROPERTY ASSESSMENT CLASSIFICATION WHEREAS, FYCO Photoengraving, Inc. , is the owner of certain real estate located within the City of Elgin and intends to seek Class 6b Cook County Real Property Assessment Classification; and WHEREAS, the property to be acquired is unimproved and will be used for manufacturing purposes . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that it hereby finds and determines that the 1 .47 acre of real property located along Woodview Drive, Elgin, Cook County, Illinois, assigned Permanent Index Number 06-18-400-068-0000 is appropriate for classification 6b under the Cook County Real Property Assessment Classification Ordinance. BE IT FURTHER RESOLVED that the City Clerk be and is hereby authorized and directed to furnish the Office of the Cook County Assessor with a certified copy of this resolution. sl Kevin Kelly Kevin Kelly, Mayor Presented: May 10, 1995 Adopted: May 10, 1995 Omnibus Vote: Yeas 7 Nays 0 Attest: sl Dolonna Mecum Dolonna Mecum, City Clerk El in Agenda Item No. April 14, 1995 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Cook County Class 6b Real Estate Tax Incentive FYCO Photoengraving, Inc. PURPOSE To provide information regarding a request from FYCO Photoen- graving, Inc. for approval from the City for participation in the Cook County Class 6b Real Estate Tax Incentive Program. BACKGROUND In May of 1986, the Cook County Board of Commissioners ap- proved an ordinance amending the Real Property Assessment Classification Ordinance to provide for real estate tax incen- tives for various types of nonresidential developments . The amended ordinance provides for three separate incentive class- es that apply to industrial and commercial developments . These are: Class 6, which applies to industrial properties; Class 7, which applies to commercial developments; and Class 8, which applies to both commercial and industrial properties under limited conditions. Since the adoption of the amended Cook County ordinance, the City has processed a minimum of four (4) real estate tax incentive requests under Class 6b of the ordinance. Among other prerequisites, Class 6b requires the local municipality to determine that development would not occur without the incentive. The City has not processed real estate tax incen- tive requests under any of the other provisions of the amend- ed Cook County ordinance. Basically, Class 6b is applicable• to any manufacturing facili- ty which is newly-developed, substantially rehabilitated, re-utilized following a prolonged vacancy, or located in a State of Illinois Certified Enterprise Zone. Class 6b pro- vides for a reduction of the Cook County real estate tax assessment factor for industrial properties from thirty-six percent (36%) to sixteen percent ( 16%) for eight years, 23% for for the ninth year, and 30% for the tenth. Thereafter, Mayor and Members of the City Council April 14, 1995 Page 2 the assessed valuation is the full 36% of the fair market value. The State equalization factor for Cook County contin- ues to apply. The most recent State equalization factor for Cook County is 2 . 1407 The factor for Kane County s 1.0588. Since the equalization factor in Cook County is app y two times that of Kane County, the 6b tax program brings the amount of taxes paid by the Cook County business on to an equal footing with those paid by Kane County businesses for a period of eight years . The City received a request for approval of a 6b tax ' incen- tive for a 1 .47 acre location along Woodview Drive owned by FYCO Photoengraving, Inc. In the course of City Council consideration of 6b requests in the past, a number of ques- tions were raised regarding real estate tax revenue for the City and School District U-46 . FYCO is planning on building a new 4 ,200 square foot facility on this property. Construction is to commence this year with the 6b. incentive in place. This facility will employ ten full-time and two part-time employees. They currently have a smaller facility at 290 Willard Avenue. The property index number is 06-18-400-068-0000 and is zoned commercial/industrial . The total 1993 taxes paid in 1994 for the index number was $2,711 . 84 . Of that total tax amount, $1,345 . 07 was allocated to School District U-46 , being 49 . 63% of the total tax. In addition, $612 .87 or 22 .57% of the total tax was allocated to the City of Elgin. It is estimated that $200,000 dollars of improvements will be placed on the property together with approximate land value of $60,000. Assuming the fair market value was determined to be $260,000 two scenarios for property tax revenues evolve. Phase I : Without 6b Incentive Equalized Assessed Valuation $ 169 ,543.44 Overall Tax Rate 8 .996/$100 EAV Annual Taxes $ 15,252 . 13 Phase I : With 6b Incentives Equalized Assessed Valuation $ 75,352.64 (years 1 - 8) 108,319 .42 (year 9) (year 10) 141,286.20 Overall Tax Rate 8.996/$100 EAV Annual Taxes 6,778 .72 (years 1 - 8) $ (year 9) 9,744.42 (year 10) 12,710. 11 Mayor and Members of the City Council April 14, 1995 Page 3 PHASE I TEN YEAR IMPACT Without 6b Incentive Total Taxes $ 152,521. 30 With 6b Incentive Years 1 - 8 $ 54,229 . 76 Year 9 9,744 . 33 Year 10 12 ,710 . 11 Total $ 76,684 .20 Current Taxes Paid Without Project Total City of Elgin U-46 Others Taxes (22 .6%) (49 . 6%) (27 . 8%) Current $ 2,711 .84 $ 612 .87 $ 1,345 .07 $ 753.90 Phase I Impact on Various Taxing Bodies Over Ten Years : Total City of Elgin U-46 Others Taxes 22 .57% 49 .63% 27 .8% W/O 6b $152 ,521 . 30 $ 34,424 . 06 $ 75,696 .32 $ 42,400 .92 With 6b $ 76, 684 . 20 $ 17 ,307 . 62 $ 38,058 . 37 $ 21,318.21 Variance $ 75,837 . 10 $ 17 , 116 .44 $ 37 ,637 .95 $ 21,082 .71 FYCO is requesting that an ordinance be passed approving the 6b classification and expressly stating. that the City of Elgin supports and consents to the class 6b application and that it finds class 6b necessary for development to occur on the above property. COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED This matter will be reviewed with School District U-46 and their comments will be obtained. FINANCIAL IMPACT If the project does not proceed, property taxes over a ten year period will total $27, 118.40. If the project does pro- ceed and the 6b incentive is granted, property taxes over the ten year period will total $76,684 .20 . If the project pro- ceeds and the 6b incentive is not granted, property taxes over the ten. year period will total $152,521.30. Mayor and Members of the City Council April 14 , 1995 Page .4 LEGAL IMPACT None. RECO MME riDAT I ON The 1 .47 acres of property located along Woodview in Elgin is currently undeveloped. FYCO has operated in Elgin at 290 Willard Avenue for 22 years . The firm is considering of expansion of its business within the Cook County p the City of Elgin and the boundaries of School District U-46 . In order to equalize the amount of property taxes paid by the company between Kane and Cook County, staff recommends support for the 6(b) incentive program request. Respectfully submitted, Raymond H. Moller Director of Business Services and Properties Richard B. Helwig City Manager RHM/sg noe ,11� 1136 1011 100 U;�6 1032 \11100 BRUCE DR. - o ASH DR. slol fr01 0 lzl, :e , 1:11 cell o = BRUCE DR. ,� 60,81 RC 0 6 H 'O h 7 7 j2 v1 lelr � p a 7f/1 DR. OUT OF CITY LIMITS Sfll A 6 rr Gr�� ELGIN CITY UMITS RO 4� Zee, W N . 1190 w 1170 9 SPRUCE LN• SIP 1226 sut h see' o � d rq lb �Oa � ` N lie, 3�c.s3 a 'zpo 4pp� '°70 f+7 Gp fl E�cIN ww 1196 tt '040 G� 1040 1190 C/? ttao Skol 7206 W W , rU.cN 1220 + 70e0 T Yy�L�,46 �•' SLII Rat Sot, LN. cT o4 G w u fie, 4 h 6801 � o h