The URL can be used to link to this page

Home My WebLink About94-138 Resolution No. 94-138 RESOLUTION DETERMINING THAT CERTAIN REAL ESTATE LOCATED AT 301, 305, 307 AND 309 RAMONA AVENUE IS APPROPRIATE FOR CLASS 6B COOK COUNTY REAL PROPERTY ASSESSMENT CLASSIFICATION WHEREAS, Land Trust No. 118605, LaSalle National Trust, N.A. , dated February 23, 1994 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 is improved with three buildings which have been vacant for two or more years . The buildings will be remodeled and an additional building will be constructed which 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 real property located at 301, 305, 307 and 309 Ramona Avenue, Elgin, Cook County, Illinois, assigned Permanent Index Number 06-19-106-020 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. s/ George VanDeVoorde George VanDeVoorde, Mayor Presented: June 8, 1994 Adopted: June 8, 1994 Vote : Yeas 6 Nays 1 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk • �n Agenda Item No . p°��rf0 FE81 June 7, 1994 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Cook County Class 6b Real Estate Tax Incentive PURPOSE To provide information regarding potential real estate tax revenues under the Cook County 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 three ( 3) real estate tax incentive requests under Class 6b of the ordinance. Among other prerequisites, Class 6b requires approval from the local municipality. The City has not processed real estate tax incentive requests under any of the other provisions of the amended Cook County ordinance. Basically, Class 6b is applicable to any manufacturing facili- ty which is newly-developed, substantially rehabilitated, reutilized following a prolonged vacancy, or located in a State of Illinois Certified Enterprise Zone. Class 6b provides 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 . The State equaliza- tion factor for Cook County continues to apply. Given a 1992 State equalization factor for Cook County of 2 . 0897 , the Cook County Real Estate Tax Incentive June 7 , 1994 Page 2 overall equalized real estate tax assessment factor for Cook County properties under Class 6b would be 33 . 44 . This com- pares to the Kane County equalized assessed valuation factor of 33 . 33 percent for industrial properties . The City has received a request for approval of a 6b tax incentive for the building located at 301 , 305, 307 , 309 Ramona Avenue. The Hanover Township Assessor' s Office provided the following information on assessed valuations for the property. Assessed Year Valuation 1993 $ 203, 131 1992 203, 131 1991 274 , 392 American Demolition is a firm involved in industrial, residen- tial and commercial property demolition. The firm currently employs fifty ( 50) in Illinois . The property in question was recently purchased from a foreclosure sale. Rehabilitation of existing buildings is planned at an expected cost of $100, 000 . The rehabilitation would include residing offices and replac- ing roofs . A profile of the business is attached. Purchase of an adjacent property for a wood chipping business is being pursued. The present request for the 6b tax incen- tive would not be applicable to the property since a sale has not been concluded. In order to respond favorably to this request, the municipali- ty must concur, and pass a resolution, that the incentive provided by Class 6b is necessary for development to occur on specific real estate. The applicant for the incentive will be asked to demonstrate to the County that either ( 1) the proper- ty was abandoned for at least twenty-four consecutive months prior to purchase, ( 2 ) new construction is part of the pro- posed development or ( 3) the property will be substantially rehabilitated. The estimated annual tax revenue, based on the 1993 assessed valuation figure is $30, 532 . The projected real estate reve- nue for the subject property at its 1993 assessed valuation figure subject to the 6b tax incentive is $28, 397 . Although separate issues from the subject request, staff wishes to make Council aware that there are several outstand- ing issues regarding the development of the property includ- ing: Cook County Real Estate Tax Incentive June 7, 1994 Page 3 1 . The property is zoned Commercial Industrial (CI ) . The proposed use would be a conditional use in the CI Dis- trict. 2 . Property is located in the Poplar Creek floodplain. There would be a concern for the environmental impacts for that floodplain. 3 . Adjacent to the east of the property is an approved residential development currently under construction. FINANCIAL IMPACT Application for the 6b tax incentive would result in a de- crease in real estate tax revenues for the City and School District U-46 . This is due to the substantial reduction in the assessment factor from the present thirty-six percent ( 36%) . After the eighth year, the property would be assessed by applying the standard real estate tax assessment factor utilized for Cook County. LEGAL IMPACT None. RECOMMENDATION Staff does not recommend support for the 6b tax incentive since the rehabilitation proposed for the property is not substantive and current information cannot demonstrate that the tax incentive is necessary to development and because property is in the floodplain. Respectfully submitted, Richard B. Helwig City Manager daw fix. I I y, !*- 'gy • rt<.r � • ,am • S S 8 'Ix 4. - --,........-.... • ..,..... •-'1-*7L4r;SLS4.3.iqtk.rre;,...rae.;•'.4,'-4- , ,,..,...„.:: .;,,,,„: „,„,,,.4..„,,,,,,,_,...._,,,...„,#,.....„ ...„„,..„.. ,, :-.4.,;- -445-44?.,„-tiL4,,A1,;',7".1.5,..- --. Z.,,r4;1-,7,. 14 ..,... ,47..,. . N.'..-•, ;'-.,:t:Acta.jjio, .3.t:/**---....40',•.444,1•1;,"--..1%1- '''‘•-,7-..:***, . • • 'f ,:,hfgIi;-n'�c .d.+"": .J t Y- • r _ " , ,i l haded ^.�C'�.� y .. i+'� Sa-uj ! �4+t+µ.4-"Tw fi<.i • 141: t ti. tp. y :t ts.'...y �� y t c a.44, 3', ` _,y-fr,.;ram ` f rR+ Ay;. ' f W .. .4.f .c +.rex j' ;•r ai 4 .•* • ' =`z 3.K .}`:5 vt� ".. y ,n , _F.; ';-.4A,w �....- ..„. ZONE C - SON E .17;�:ac-•ti 1 �,.{,y,. ,. ,--�,.,, r 2 I',(-} a_ rt^; ._.ny ,a..'fs:.-.rrfv +c.� •, `�'•rijr: a��\ '�•s"'�' p' 4- s4 'yty • ti - `,- t• �r .., :‘,,V;;;-`:"_ t-1''',AZ,7—11,.",k`,T,',--- ':' *:-.' -.. •••••,;43%14,,f; e,f....f.-4,:i..Z-ei,...:T";4',F,,. ...,r.4.*-C-A-•.‘ .r...tZ44,4'1'-.•11 ---'''•&`-"-• ,.'•_••.44., ,.-'.,•.,.•-••-:.,j,•.,0,17 ,-,? .1,yre. ,'• . �'.>..•r S..t.', -�'` 4M. ; Y • yy...• i _ '�i -4; a:,�{ s gnu • ' ;°" ' ,-"':!i!.-, -",;--'''.. .'43 ,):.,-, 4-.:,-e--..;,-.4e.---e'-- t'i'. rti=' f • tee` T� • M s+ n • Li + lr' da• p• gr ��e-s-; .-it - :�,..- > s • *"-;" 'ate- ,;rr i , :-'4 c s ram; ) '....,..z7,-....0-,...,•4,-;:,•t:••- :0.:',•,...-4.-. -,,7_,._ \l1it ,„.:i.t.,...-.•.#...o.Ip..„..-.*-p + k psC F• f'- f 7 4X1, \I..i .)0b0,. p.h? 3/p1/k -4i rep*i' .-•.N.-.S..e.4..!...;.-(.:--.•e„„:,.‘,,.,-,.;•,4-:..,..I,..,:. ...i.,a.--.,-,..:,1..4•'-.-A.;.7"‘.,,.'„-r.:.-,•,`;.-1%.,..4..:,4':.7,,., 3 ♦i ZONE A4 4., s ... 4'.„...,, r • ' _ U: 1 y Y �? ` >�� ZONE C .,� • Robert S. Kramer, P.C. Attorney at Law 1250 Larkin Avenue, Suite 100 Elgin, Illinois 60123 (708) 742-9111 FAX (708) 742-4030 Writer's Direct Dial 742-9193 ext. 103 May 24, 1994 Ms. Deborah K. Nier Assistant to the City Manager City of Elgin 150 Dexter Court Elgin, IL 60120-5555 Regarding American Demolition Corporation - Ramona Street Property Dear Ms. Nier: At your request, and as a supplement to our May 9, 1994 letter seeking to agenda before the City Council our request for a Class 6b endorsement by the City of Elgin, I hope the following information will be helpful in providing you the background information for the Council presentation. A. Entity. Dieter K. Pawlik is the president and principal shareholder of American Demolition Corporation as well as the 100% owner of the beneficial interest in Land Trust No. 118605, LaSalle National Trust, N.A., dated February 23, 1994, which holds title to the subject property. B. Property Address. 301, 305, 307 and 309 Ramona Avenue, Elgir, I 60120. C. Employee Base. American Demolition has approximately 50 employees in Illinois and was established in 1989. D. Permanent Real Estate Index Number. 06-19-106-020. E. Assessed valuation. $274,392, 1991; $203,131, 1992; $203,131, 1993. This represents 36% fair market value. E. Legal Description. See attached. May 24, 1994 Page Two Ms. Deborah K. Nier F. Intended Renovations and Investment Dollars. American Demolition intends to remodel three existing buildings, including re-siding offices, replacing roofs, and general rehabilitation at an expected cost of $100,000. The adjacent parcel is being sought and a potential new construction of $700,000-$800,000 is possible for a wood chipping business, which could create an additional six jobs. American Demolition is presently in the business of industrial, residential and commercial property demolition, including debris clearing and waste removal, with recycling when possible. Mr. Pawlik acquired the subject property, which was formerly the Rasmussen Steel property, as a result of negotiations with Elgin State Bank, the foreclosure lender of Rasmussen; this transaction closed on March 11, 1994. • We intend to file a timely Class 6b Application and need an ordinance or resolution from the City of Elgin embracing our rehabilitation of this formerly abandoned property. Please feel free to phone if there is any further which you need. Very truly yours, r4_t7„k, 5 KAgrAt&... Robert S. Kramer lw cc: Dieter K. Pawlik Legal Description That part of Lot 9 of the County Clerk's Division of unsubdivided lands in Section 19, Township 41 North, Range 9 East of the Third Principal Meridian, according to the plat thereof recorded June 20, 1895, described as follows: Beginning at a point on the North line of said Lot 9, being also the North line of said Section 19, that is 605.00 feet (as measured along said North line) West of the Northeast corner of said Lot 9 being also the Northeast corner of the Northwest quarter of said Section 19; thence North 89 degrees 10 minutes 00 seconds east, along said North line, a distance of 605.00 feet to the said Northeast corner of Lot 9; thence South 00 degrees 15 minutes 59 seconds East, along the East line of said Lot 9 presumably the East Line of said Northwest Quarter, a distance of 396.00 feet; thence South 89 degrees 10 minutes 00 seconds West, parallel with the said North line of Lot 9, a distance of 654.22 feet to the Easterly line of proposed Ramona Avenue by Document No. 11312306; thence North 06 degrees 48 minutes 33 seconds East, along said Easterly line, a distance of 399.53 feet to the point of beginning; excepting therefrom that part described as follows: beginning at the Northeast corner of said Lot 9, being also the Northeast corner of the Northwest Quarter of said Section 19, thence south 00 degrees 15 minutes 59 seconds East, along the East line of said Lot 9, presumably the East line of said Northwest Quarter, a distance of 183.63 feet; thence South 88 degrees 06 minutes 42 seconds West, a distance of 425.15 feet; thence North 00 degrees 15 minutes 59 seconds West, parallel with the said East line of Lot 9, a distance of 191.46 feet to the North line of said Lot 9, being also the North line of said Section 19; thence North 89 degrees 10 minutes 00 seconds East, along said North line, a distance of 425.00 feet to the point of beginning, all in Cook County, Illinois. P.I.N. 06-19-106-020 Commonly known as 301, 305, 307 and 309 Ramona Avenue, Elgin, IL 60120 CS PY TELEPHONE 708/931-6100 HonFAX 708/931-5610 FOR HEARING IMPAIRED TDD 708/931-5616 CITY OF ELGIN150 DEXTER COURT ELGIN, ILLINOIS 60120-5555 /7 Direct Line 931-5660 June 14 , 1994 Mr. Rob Kramer Attorney at Law 1250 Larkin Avenue, Suite 100 Elgin, IL 60123 Re: Resolution for Class 6B Property Assessment Classification Dear Rob: Pursuant to your request, I am enclosing a certified copy of Resolution 94-138 adopted June 8, 1994 , determining that certain real estate located at 301, 305, 307 and 309 Ramona Avenue is appropriate for Class 6B Cook County real property assessment classification. Very truly yours, Dolonna "Loni" Mecum City Clerk Enclosure (i) Printed on recycled paper l C 0 PY TELEPHONE 708/931-6100 EIQ'ifl FAX 708/931-5610 FOR HEARING IMPAIRED TDD 708/931-5616 CITY OF ELGIN 150 DEXTER COURT ELGIN, ILLINOIS 60120-5555 Direct Line 931-5660 June 10, 1994 Cook County Assessor Cook County Building 118 North Clark Street Chicago, IL 60602 Re: Class 6B Tax Incentive Gentlemen: I am enclosing certified copies of the following resolutions adopted by the Elgin City Council regarding Class 6B assessment classification: 1 . Resolution No. 94-66 determining that real estate located at 1019 East Chicago Street is Appropriate for Class 6B Cook County Real Property Assessment Classification 2 . Resolution No. 94-138 determining that real estate located at 301, 305, 307 and 309 Ramona Avenue are appropriate for Class 6B Cook County Real Property Assessment Classification Sincerely, Dolonna "Loni" Mecum City Clerk dkm Enclosures (i) Printed on recycled paper