At a recent meeting, the Cook County Business and Economic Development Committee approved several tax-incentive requests.
The Cook County Business and Economic Development Committee is a subcommittee of the Cook County Board of Commissioners. Its members advise the board on issues related to bringing new businesses to the county.
Below are the minutes from this meeting, as provided by the committee.
Board of Commissioners of Cook County
Minutes of the Business and Economic Development Committee
Tuesday, June 7, 2016 9:15 AM Cook County Building, Board Room
118 North Clark Street, Chicago, Illinois
ATTENDANCE
Present: Chairman García, Commissioners Arroyo, Butler, Moore, Morrison and Schneider (6)
Absent: Vice Chairman Murphy, Commissioners Gainer and Steele (3)
PUBLIC TESTIMONY
Chairman García asked the Secretary to the Board to call upon the registered public speakers, in Accordance with
Cook County Code.
There were no public speakers.
COMMITTEE MINUTES
16-3619
Approval of the minutes from the meeting of 5/11/2016
A motion was made by Commissioner Moore, seconded by Commissioner Schneider, that this CommitteeMinutes be approved. The motion carried.
Ayes: Chairman García, Commissioners Arroyo, Butler, Moore, Morrison and Schneider (6)
Absent: Vice Chairman Murphy, Commissioners Gainer and Steele (3)
16-2923
Sponsored by: TONI PRECKWINKLE, President and DEBORAH SIMS, County Commissioner
PROPOSED RESOLUTION
ES REALTY OLYMPIA FIELDS LLC CLASS 8 PROPERTY TAX INCENTIVE REQUEST
WHEREAS, the Cook County Bureau of Economic Development received and reviewed a Real PropertyAssessment Classification 8 application containing the following information:
Applicant: ES Realty Olympia Fields LLC
Address: 2520 Lincoln Highway, Olympia Fields, Illinois 60461
Municipality or Unincorporated Township: Olympia Fields
Cook County District: 5
Permanent Index Number: 31-24-401-014-0000
Municipal Resolution Number: 2015-18
Number of month property vacant/abandoned: 19 months at time of application
Special circumstances justification requested: Yes
Estimated Number of jobs created by this project: 8 full-time, 0 part-time
Estimated Number of jobs retained at this location: 0 full-time, 0 part-time
Estimated Number of employees in Cook County: 0 full-time, 0 part-time
Estimated Number of construction jobs: Not provided
Proposed use of property: Commercial-retail, service or restaurant users
Living Wage Ordinance Compliance Affidavit Provided: Yes
WHEREAS, the Cook County Board of Commissioners has adopted a Real Property Assessment Classification8 that provides an applicant a reduction in the assessment level for an abandoned commercial facility; and
WHEREAS, the Cook County Classification System for Assessment defines abandoned property as buildingsand other structures that, after having been vacant and unused for at least 24 continuous months, have been purchased for value by a purchaser in whom the seller has no direct financial interest; and
WHEREAS, in the instance where the property does not meet the definition of abandoned property, themunicipality or the Board of Commissioners, may determine that special circumstances may exist that justify finding that the property is abandoned for purpose of Class 8; and
WHEREAS, in the case of abandonment of less than 24 months and purchase for value, by a purchaser in whom the seller has no direct financial interest, the County may determine that special circumstances justify finding the property is deemed abandoned; and
WHEREAS, Class 8 requires the validation by the County Board of the shortened period of qualifyingabandonment in cases where the facility has been abandoned for less than 24 consecutive months upon purchase for value; and
WHEREAS, the municipality states the Class 8 is necessary for development to occur on this specific real estate.The municipal resolution cites the qualifications of this property to meet the definition of abandoned with special circumstances; and
WHEREAS, commercial real estate is normally assessed at 25% of its market value, qualifying commercial realestate eligible for the Class 8 can receive a significant reduction in the level of assessment from the date that new construction or rehabilitation has been completed, or in the case of abandoned property from the date of substantialre-occupancy. Properties receiving Class 8 will be assessed at 10% of the market value for 10 years, 15% for the 11th year and 20% in the 12th year; and
NOW, THEREFORE, BE IT RESOLVED, by the President and Board of Commissioners of the County of Cook,that the President and Board of Commissioners validate the above-captioned property is deemed abandoned withspecial circumstances under the Class 8; and
BE IT FURTHER RESOLVED, that the County Clerk is hereby authorized and directed to forward a certifiedcopy of this resolution to the Office of the Cook County Assessor
A motion was made by Commissioner Schneider, seconded by Commissioner Arroyo, that this Resolutionbe recommended for approval. The motion carried.
Ayes: Chairman García, Commissioners Arroyo, Butler, Moore, Morrison and Schneider (6)
Absent: Vice Chairman Murphy, Commissioners Gainer and Steele (3)
16-2924
Sponsored by: TONI PRECKWINKLE, President and JOAN PATRICIA MURPHY, County Commissioner
PROPOSED RESOLUTION
SIMONE KAPOVICH/S&J CONSTRUCTION CLASS 8 PROPERTY TAX INCENTIVE REQUEST
WHEREAS, the Cook County Bureau of Economic Development received and reviewed a Real Property Assessment Classification 8 application containing the following information:
Applicant: Simone Kapovich/ S&J Construction
Address: 16823 State Street and 61 East 168th Street, South Holland, 60473
Municipality or Unincorporated Township: South Holland
Cook County District: 6
Permanent Index Number: (3) PINs: 29-22-302-016-0000; 29-22-302-017-0000; 29-22-302-041-0000
Municipal Resolution Number: South Holland Resolution approved December 7, 2015
Number of month property vacant/abandoned: 26 months
Special circumstances justification requested: Yes
Estimated Number of jobs created by this project: 18 full-time, 0 part-time
Estimated Number of jobs retained at this location: 0 full-time, 0 part-time
Estimated Number of employees in Cook County: 0 full-time, 0 part-time
Estimated Number of construction jobs: N/A
Proposed use of property: Industrial-Warehousing and logistics
Living Wage Ordinance Compliance Affidavit Provided: Yes
WHEREAS, the Cook County Board of Commissioners has adopted a Real Property Assessment Classification 8 that provides an applicant a reduction in the assessment level for an abandoned industrial facility; and
WHEREAS, the Cook County Classification System for Assessment defines abandoned property as buildings and other structures that, after having been vacant and unused for more than 24 continuous months, there has been no purchased for value by a purchaser and the property is in need of substantial rehabilitation; and
WHEREAS, in the instance where the property does not meet the definition of abandoned property, the municipality or the Board of Commissioners, may determine that special circumstances may exist that justify finding that the property is abandoned for purpose of Class 8; and
WHEREAS, in the case of abandonment of over 24 months and no purchase for value by a disinterested buyer, the County may determine that special circumstances justify finding the property as being deemed abandoned; and
WHEREAS, Class 8 requires a resolution by the County Board validating the property as abandoned for the purpose of Class 8; and
WHEREAS, the municipality states the Class 8 is necessary for development to occur on this specific real estate.
The municipal resolution cites the qualifications of this property to meet the definition of abandoned with special circumstances; and
WHEREAS, commercial real estate is normally assessed at 25% of its market value, qualifying commercial real estate eligible for the Class 8 can receive a significant reduction in the level of assessment from the date that new construction or rehabilitation has been completed, or in the case of abandoned property from the date of substantial re-occupancy. Properties receiving Class 8 will be assessed at 10% of the market value for 10 years, 15% for the 11th year and 20% in the 12th year; and
NOW, THEREFORE, BE IT RESOLVED, by the President and Board of Commissioners of the County of Cook, that the President and Board of Commissioners validate the above-captioned property is deemed abandoned with special circumstances under the Class 8; and
BE IT FURTHER RESOLVED, that the County Clerk is hereby authorized and directed to forward a certified copy of this resolution to the Office of the Cook County Assessor.
A motion was made by Commissioner Moore, seconded by Commissioner Butler, that this Resolution be recommended for approval. The motion carried.
Ayes: Chairman García, Commissioners Arroyo, Butler, Moore, Morrison and Schneider (6)
Absent: Vice Chairman Murphy, Commissioners Gainer and Steele (3)
16-2959
Sponsored by: TONI PRECKWINKLE, President and STANLEY MOORE, County Commissioner
PROPOSED RESOLUTION
Mr. Bult’s Inc. (MBI) CLASS 8 PROPERTY TAX INCENTIVE REQUEST
WHEREAS, the Cook County Bureau of Economic Development received and reviewed a Real Property Assessment Classification 8 application containing the following information:
Applicant: Mr. Bult’s Inc. (MBI)
Address: 13820 South Marquette, Burnham, Illinois
Municipality or Unincorporated Township: Burnham
Cook County District: 4th
Permanent Index Number: 30-06-102-023-0000; 30-06-102-024-0000; 30-06-102-026-0000; 30-06-102-027-0000; 30-06-102-028-0000 and 30-06-102-029-0000
Municipal Resolution Number: Village of Burnham, Resolution Number 2014-R-011
Number of month property vacant/abandoned: December 1, 2013 thru February 19, 2014 (Assessor’s application date) 2 months the property was vacant an additional 22 months after the application date.
Special circumstances justification requested: Yes
Estimated Number of jobs created by this project: 5 full-time
Estimated Number of jobs retained at this location: 165 full-time
Estimated Number of employees in Cook County: not applicable
Estimated Number of construction jobs: 3 full-time
Proposed use of property: This property will be used for industrial purposes - waste hauling operations.
Living Wage Ordinance Compliance Affidavit Provided: Yes or No
WHEREAS, the Cook County Board of Commissioners has adopted a Real Property Assessment Classification 8 that provides an applicant a reduction in the assessment level for an abandoned commercial facility; and
WHEREAS, the Cook County Classification System for Assessment defines abandoned property as buildings and other structures that, after having been vacant and unused for at least 24 continuous months, have been purchased for value by a purchaser in whom the seller has no direct financial interest; and
WHEREAS, in the instance where the property does not meet the definition of abandoned property, the municipality or the Board of Commissioners, may determine that special circumstances may exist that justify finding that the property is abandoned for purpose of Class 8; and
WHEREAS, in the case of abandonment of less than 24 months and purchase for value, by a purchaser in whom the seller has no direct financial interest, the County may determine that special circumstances justify finding the property is deemed abandoned; and
WHEREAS, Class 8 requires the validation by the County Board of the shortened period of qualifying abandonment in cases where the facility has been abandoned for less than 24 consecutive months upon purchase for value; and
WHEREAS, the municipality states the Class 8 is necessary for development to occur on this specific real estate.
The municipal resolution cites the qualifications of this property to meet the definition of abandoned with special circumstances; and
WHEREAS, commercial real estate is normally assessed at 25% of its market value, qualifying commercial real estate eligible for the Class 8 can receive a significant reduction in the level of assessment from the date that new construction or rehabilitation has been completed, or in the case of abandoned property from the date of substantial re-occupancy. Properties receiving Class 8 will be assessed at 10% of the market value for 10 years, 15% for the 11th year and 20% in the 12th year; and
NOW, THEREFORE, BE IT RESOLVED, by the President and Board of Commissioners of the County of Cook, that the President and Board of Commissioners validate the above-captioned property is deemed abandoned with special circumstances under the Class 8; and
BE IT FURTHER RESOLVED, that the County Clerk is hereby authorized and directed to forward a certified copy of this resolution to the Office of the Cook County Assessor
A motion was made by Commissioner Moore, seconded by Commissioner Arroyo, that this Resolution be recommended for approval. The motion carried.
Ayes: Chairman García, Commissioners Arroyo, Butler, Moore, Morrison and Schneider (6)
Absent: Vice Chairman Murphy, Commissioners Gainer and Steele (3)
16-3163
Presented by: MICHAEL JASSO, Chief, Bureau of Economic Development
PROPOSED PREVIOUSLY APPROVED ITEM AMENDMENT
Department: Bureau of Economic Development
Request: AMEND A PREVIOUSLY APPROVED ITEM
Item Number: 14-0099
Fiscal Impact: N/A
Account(s): N/A
Original Text of Item:
PROPOSED ORDINANCE
AN ORDINANCE AUTHORIZING COOK COUNTY THROUGH ITS BUREAU OF ECONOMICDEVELOPMENT TO ESTABLISH PROGRAM FEES FOR VARIOUS BUILT IN COOK LOANPROGRAMS.
WHEREAS, the Cook County Board of Commissioners on April 17, 2013 approved a Resolution authorizing the Bureau of Economic Development to accept the U.S. Department of Housing and Urban Development (HUD)
Section 108 Loan Guarantee financing which will launch the BUILT (Broadening Urban Investment to Leverage Transportation) in Cook Loan Fund in an amount not to exceed $30 million dollars; and
WHEREAS, this financing will provide Cook County (County) through the Bureau of Economic Development with the lending authority to support sustainable economic development for the benefit of low- and moderateincome individuals; and
WHEREAS, the Section 108 program is administered as part of HUD’s Community Development and Block Grant (CDBG) program and is subject to the requirements governing the CDBG program; and
WHEREAS, it is permissible for Section 108 recipients to impose fees on third party borrowers who receive loans made with the proceeds of Section 108 loans; and
WHEREAS, if the purpose of the fees is to defray costs related to administering aspects of a Section 108 project, the fee should be treated as an applicable credit against administrative costs; and
WHEREAS, it is permissible by HUD that the County collect an application processing fee of $500.00 or $1,000.00 to defray the administrative costs of processing a Section 108 application and such fee will be treated as an applicable credit against administrative costs; and
WHEREAS, it is permissible by HUD for Cook County to charge third party borrowers an interest rate that is higher than the rate payable on the Section 108 loan (interest rate spread) and HUD encourages Section 108 recipients to use the interest rate spread as a reserve for interest rate fluctuations; and
WHEREAS, it is permissible by HUD that the County charge a 2 - 3% loan commitment, a portion of which will be used to defray administrative costs associated with the Section 108 loan program(s) and the remaining portion of which may be used as program income to serve as a reserve for the loan program.
NOW, THEREFORE, BE IT ORDAINED, by the Board of Commissioners of the County of Cook, Illinois:
SECTION 1. The above recitals are expressly incorporated in and made a part of this Ordinance as though fullyset forth herein.
SECTION 2. The Cook County Bureau of Economic Development (Bureau of Economic Development) isauthorized to establish various programs for qualified entities to obtain federally financed economic developmentBroadening Urban Investment to Leverage Transportation (BUILT) in Cook Loans pursuant to Section 108 of the
Housing and Community Development Act, 43 USCS § 5301 and Title V of the Small Business Investment Act,
15 USCS § 695 et seq.; 24 CFR Part 570, Subpart M (Community Development Block Grants, Loan Guarantees); and 13 CFR Part 120 (Business Loans). Such programs may include but are not limited to:
(a) The BUILT in Cook HUD 108 Loan Program, to finance transit-oriented development, cargo-oriented development, and mixed-use/service sector projects. The HUD 108 loan minimum under the HUD 108 program is $500,000. The maximum loan amount is $5 million or $35,000 per job created, whichever is less.
(b) The BUILT 50-40 Loan Program, to support job creation and retention projects that are typically associated with small business, specifically industrial or commercial companies that are located or planning to locate in Suburban Cook County. The program may only be used to finance up to 40% of total project costs, provided that the grantee has additionally attained 50% lender financing and 10% equity. The loan amount per transaction is $70,000 to $500,000. One full time equivalent job must be created or retained for every $35,000 provided.
(c) The Emerging Business Development Loan (EBDL) Program, to provide interim financing for minority and/or woman owned businesses that are certified by Cook County, or eligible for reciprocal treatment under the Cook County Code, and have direct or indirect contracts with Cook County government. Loans under this program shall not exceed $500,000 or 25% of the value of the work awarded by Cook County government, whichever is less.
SECTION 3. The programs established under the BUILT in Cook Loan Program shall be administered by the Cook County Bureau of Economic Development and the Bureau of Economic Development is hereby authorized to issue any required BUILT in Cook Loan Program rules and regulations.
SECTION 4. The Bureau of Economic Development is authorized to establish a Broadening Urban Investment to Leverage Transportation (BUILT) in Cook Loan Fund to support sustainable economic development for the benefit of low and moderate income individuals, in accordance with Section 108 of the Housing and Community Development Act, 42 U.S.C. § 5301, et seq. The BUILT in Cook Loan Fund will be funded pursuant to a Grant Agreement with U.S. Department of Housing and Urban Development (HUD) and secured by pledging current and future Community Development Block Grants and other collateral in the event of nonpayment, as required. Such Grant Agreements are subject to the authorization of the County Board of Commissioners. The Department of Budget and Management shall create a special purpose fund and sub account(s) for the BUILT in Cook Loan Programs authorized pursuant to this Ordinance. Any fees and revenue generated from these programs shall be placed in such special purpose fund or sub account(s) and used to defray administrative costs or project delivery costs as permissible by HUD.
SECTION 5. In order to defray various administrative costs for processing the various BUILT in Cook Loan applications for loan programs authorized per Section 2 of this Ordinance, a loan application processing fee shall be determined by the Bureau of Economic Development and implemented in an amount of $500.00 or $1,000.00 depending on the size and complexity of the loan and loan program. The loan application processing fee shall not exceed $1,000.00. Said fee shall be in addition to any costs of financing, including and not limited to legal and other third party costs related to program participation which is the sole responsibility of the program participant. The loan processing application shall be a non-refundable fee and is permissible by HUD.
SECTION 6. Cook County through the Bureau of Economic Development shall charge a loan commitment fee in an amount up to three percent on each approved loan authorized under Section 2 of this Ordinance. A portion of this loan commitment fee as permitted by HUD shall be used to defray administrative costs and the remaining portion shall be used as program income to serve as a loss reserve. The loan commitment fees shall be treated in accordance with the regulations governing Community Development Block Grants.
SECTION 7. The Bureau of Economic Development shall make a copy of this Ordinance available with its BUILT in Cook Loan program materials or post a copy of this Ordinance on its website.
SECTION 8. The County Clerk shall maintain a copy of this Ordinance and publish said Ordinance in the Journal of Proceedings. Effective date: This ordinance amendment shall be in effect as of the date of its passage and approval.
A motion was made by Commissioner Moore, seconded by Commissioner Butler, that this Resolution be recommended for approval. The motion carried.
Ayes: Chairman García, Commissioners Arroyo, Butler, Moore, Morrison and Schneider (6)
Absent: Vice Chairman Murphy, Commissioners Gainer and Steele (3)
ADJOURNMENT
A motion was made by Commissioner Moore, seconded by Commissioner Schneider, to adjourn the meeting. The motion carried.
Ayes: Chairman García, Commissioners Arroyo, Butler, Moore, Morrison and Schneider (6)
Absent: Vice Chairman Murphy, Commissioners Gainer and Steele (3)
Respectfully submitted,
____________________________ ____________________________________
Chairman Secretary
*A video recording of this meeting is available at https://cook-county.legistar.com
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