South Cook News

Cook County Business and Economic Development Committee met Oct. 23.

Here is the agenda provided by the committee:

PUBLIC TESTIMONY

Authorization as a public speaker shall only be granted to those individuals who have submitted in writing, their name, address, subject matter, and organization (if any) to the Secretary 24 hours in advance of the meeting. Duly authorized public speakers shall be called upon to deliver testimony at a time specified in the meeting agenda. Authorized public speakers who are not present during the specified time for public testimony will forfeit their allotted time to speak at the meeting. Public testimony must be germane to a specific item(s) on the meeting agenda, and the testimony must not exceed three minutes; the Secretary will keep track of the time and advise when the time for public testimony has expired. Persons authorized to provide public testimony shall not use vulgar, abusive, or otherwise inappropriate language when addressing the Board; failure to act appropriately; failure to speak to an item that is germane to the meeting, or failure to adhere to the time requirements may result in expulsion from the meeting and/or disqualify the person from providing future testimony.

19-6250

COMMITTEE MINUTES

Approval of the minutes from the meeting of 09/25/201919-5324

Sponsored by: DONNA MILLER and DEBORAH SIMS, Cook County Board of Commissioners

PROPOSED ORDINANCE AMENDMENT

TO AMEND THE CURRENT CAL SAG ENTERPRISE ZONE SUBJECT TO THE ENTERPRISE ZONE ACT OF THE STATE OF ILLINOIS.

WHEREAS, the State of Illinois Enterprise Zone Act (20 ILCS 655/1 et seq) provides for the creation of enterprise zones to encourage private sector investments in economically distressed areas throughout the State; and

WHEREAS, The Village of Alsip, The City of Blue Island, The Village of Calumet Park, The City of Country Club Hills, The Village of Dixmoor, The Village of East Hazel Crest, The Village of Homewood, The City of Harvey, The Village of Hazel Crest, The City of Markham, The Village of Merrionette Park, The Village of Midlothian, The City of Oak Forest, The Village of Phoenix, The Village of Robbins, The Village of Worth, and the County of Cook (“the County”), a body Politic and Corporate of the State of Illinois, are organized and existing under the laws of the State of Illinois. Each have areas within their respective legal boundaries that are economically distressed and would benefit from private sector investments under the Illinois Enterprise Zone Act; and

WHEREAS, the aforesaid Municipalities and the County have joined in the collective pursuit of a joint Enterprise Zone, subject to approval of their respective governing bodies; and

WHEREAS, the Municipalities and the County have declared and established an Enterprise Zone pursuant to the authority granted by the Illinois Enterprise Zone Act, as amended, subject to the approval by the Illinois Enterprise Zone Board and certification by the Illinois Department of Commerce and Economic Opportunity. This Enterprise Zone is named and designated as the "Cal Sag" Enterprise Zone; andWHEREAS, the Cal Sag Enterprise Zone was duly approved by the Illinois Enterprise Zone Board, certified by the Illinois Department of Commerce and Economic Opportunity and currently exists; and

WHEREAS, it is determined that it is in the best interest of the citizens of the County and Municipalities to amend the current Cal Sag Enterprise Zone to change its boundaries by deleting certain territories from the existing Cal Sag Enterprise Zone and include additional territories to the proposed amended Cal Sag Enterprise Zone, as well as to encourage private sector investments within said proposed amended Enterprise Zone; and

WHEREAS, prior to filing of an application for approval of the designation of an amended Enterprise Zone, under the Illinois Enterprise Zone Act, it is required that the County and Municipalities respectively adopt Ordinances designating the proposed amended Enterprise Zone; and

BE IT ORDAINED, by the Cook County Board of Commissioners, that Chapter 14 - Community Development, Article III-Cal-Sag Enterprise Zone, Section 14-29 through Section 14-38 of the Cook County Code is hereby amended as Follows:

ARTICLE III. - CAL- SAG ENTERPRISE ZONE 

Sec. 14-29. Amendment to existing enterprise zone.

In accordance with the Enterprise Zone Act (20 ILCS 655/1 et seq.), the Board of Commissioners hereby amends the existing Cal- Sag Enterprise Zone in cooperation with the Village of Alsip, the City of Blue Island, the Village of Calumet Park, the City of Country Club Hills, the Village of Dixmoor, the Village of East Hazel Crest, the Village of Homewood, the City of Harvey, the Village of Hazel Crest, the City of Markham, the Village of Merrionette Park, the City of Oak Forest, the Village of Phoenix, the Village of Robbins, the Village of Worth, the Village of Midlothian and the County of Cook. Each has areas within their respective legal boundaries that are economically distressed and would benefit from private sector investments under the Enterprise Zone Act. This Enterprise Zone is hereby declared and established as an amendment to the current existing Cal Sag Enterprise Zone pursuant to authority granted by the Illinois Enterprise Zone Act, as amended. The amended Enterprise Zone is named and designated as the Cal-Sag Enterprise Zone; said amended Enterprise Zone is further subject and contingent on approval by the Illinois Enterprise Zone Board and certification by the Illinois Department of Commerce and Economic Opportunity.

Sec 14-30.- Term.

The term of the amended Enterprise Zone is the same as the current Cal Sag Enterprise Zone, subject to the effective date of certification of the amended Enterprise Zone and the potential ten-year renewal prescribed under the Illinois Enterprise Zone Act. The current Cal Sag Enterprise Zone is scheduled to expire on December 31, 2030, subject to the 10 year renewal prescribed under the Illinois Enterprise Zone Act.

Sec. 14-31. - Description of zone.

The area of the designated amended Enterprise Zone is outlined in the map in Exhibit A and the Zone's boundaries are delineated in Exhibit B which exhibits are attached to the Ordinance [codified in this Article] and incorporated herein by reference.

Sec. 14-32. - Qualifications.

The County and the Municipalities hereby declare and affirm that the amended Zone Area is qualified for designation as an Enterprise Zone in accordance with the provisions of the Illinois Enterprise Zone Act, and it is declared herein:

(a) The amended Zone Area is a contiguous area;

(b) The amended Zone Area comprises an area larger than one-half square mile and not more than 15 square miles in total area;

(c) The amended Zone Area is a depressed area;

(d) The amended Zone Area addresses a reasonable need to encompass portions of more than one Municipality and adjacent unincorporated areas of the County;

(e) The amended Zone Area exceeds the minimum requirement of meeting three of the ten criteria specified in the Illinois Enterprise Act (20 ILCS 655/4 (f));

(f) On the 18th day of July, 2019, a public hearing was conducted pursuant to a Notice duly published in a newspaper of general circulation, within the Cal Sag Enterprise Zone Area and within the proposed amended Zone Area, not more than 20 days nor less than five days before the hearing date; and

(g) The amended Zone Area satisfies any additional criteria stated in the Illinois Enterprise Zone Act or established by the Rules of the Illinois Department of Commerce and Economic Opportunity.

All of the above stated findings are supported, sustained and consistent with the substantive materials contained in Exhibit C, attached here to, and incorporated herein by reference.

Sec. 14-33. - Incentives.

The State of Illinois, Countiesy and Municipalities offer incentives designed to encourage businesses in the private sector to locate or expand within an Enterprise Zone, subject to terms, conditions, rules and legal limitations in the law:

(a) State Incentives.

(1) Sales Tax Exemption. A 6.25 -percent state sales tax exemption is permitted on building materials to be used in an Enterprise Zone. Materials must be permanently affixed to the property and must be purchased from a qualified retailer.

(2) Enterprise Zone Machinery and Equipment Consumables/Pollution Control Facilities Sales Tax Exemption. A 6.25 -percent state sales tax exemption on purchases of tangible personal property to be used in the manufacturing or assembly process or in the operation of a pollution control facility within an Enterprise Zone is available. Eligibility is based on a business making an investment in an Enterprise Zone of at least $5,000,000.00 in qualified property that creates a minimum of 200 full-time-equivalent jobs, a business investing at least $40,000,000.00 in a zone and retaining at least 2,000 jobs, or a business investing at least $40,000,000.00 in a zone which causes the retention of at least 80 percent of the jobs existing on the date it is certified to receive the exemption.

(3) Enterprise Zone Utility Tax Exemption. A state utility tax exemption on gas, electricity and the Illinois Commerce Commission's administrative charge and telecommunication excise tax is available to businesses located in Enterprise Zones. Eligible businesses must make an investment of at least $5,000,000.00 in qualified property that creates a minimum of 200 full-time equivalent jobs in Illinois, an investment of $20,000,000.00 that retains at least 1,000 full-time-equivalent jobs, or an investment of $175,000,000.00 that creates 150 full-time equivalent jobs in Illinois. The majority of the jobs created must be located in the Enterprise Zone where the investment occurs.

(4) Enterprise Zone Investment Tax Credit. A state investment tax credit of one-half of one percent is allowed a taxpayer who invests in qualified property in a Zone. Qualified property includes machinery, equipment and buildings. The credit may be carried forward for up to five years. This credit is in addition to the regular one-half percent Investment tax credit, which is available throughout the state, and up to one-half of one percent credit for increased employment over the previous year.

(5) Contribution Deduction. Businesses may deduct double the value of a cash or in-kind contribution to an approved project of a Designated Zone Organization from taxable income.

(b) Local incentives and fees. Local governments, through the assistance and coordination of the Enterprise Zone Administrators, may provide a variety of local incentives to further encourage economic growth and investment within enterprise zones. The incentives offered are determined by counties and municipalities. The following local Enterprise Zone incentives are hereby offered:

(1) Abatement of 50 percent of the municipal portion of property taxes on new improvements for the first five years following the completion of these improvements for industrial or commercial properties, or for residential properties of 12 or more housing units, so long as the residential property remains under one ownership. This benefit will not be applicable if the project investor is also the recipient of tax relief under the terms of a tax increment finance (TIF) agreement or other substantial property tax abatement provided by a unit of local government.

(2) Waiver of 50 percent of building permit or zoning application fees for industrial or commercial

properties, or for residential properties of 12 or more housing units.

(3) The Enterprise Zone will provide officials of municipalities that are signatories to the Intergovernmental Agreement, which is Attachment D to this Ordinance, with certain written documentation and materials relative to additional incentives, including public or not for profit financing and workforce development programs, which municipal officials may make available to the project developer, and other interested individuals. There is no representation that the available documents and materials include all incentives and program available to the project.

The Zone Administrator shall file a copy of the Enterprise Zone's fee schedule with the Department of Commerce and Economic Opportunity by April 1 of each year. The Zone Administrator may charge up to one half of one percent of the cost of building materials of the project associated with the Enterprise Zone, provided that a maximum fee of no more than $50,000.00 is permitted (20 ILCS 655/8.2 (c)) as to each project.

Sec. 14-34. - Zone administrator.

The Zone Administrator is responsible for the day-to-day operation of the Enterprise Zone including:

(a) Supervise the implementation of the provisions of the Cal Sag Intergovernmental Agreement under the Illinois Enterprise Zone Act.

(b) Act as a liaison between the County, Municipalities, the Illinois Department of Commerce Economic Opportunity, Designated Zone Organizations, and other State, Federal and local agencies, whether public or private.

(c) Conduct an ongoing evaluation of the Enterprise Zone programs and submit evaluative reports, at least annually, to the Enterprise Zone Governing Council (“the Council”).

(d) Promote the coordination of other relevant programs, including, but not limited to, housing, community and economic development, small business, financial assistance and employment training within the amended Enterprise Zone.

(e) Recommend qualified Designated Zone Organizations to the Council of the amended Enterprise Zone.

(f) Have other such duties as specified by the Council, including the appointment of authorized personnel as appropriate, to assure the smooth operation of the amended Cal Sag Enterprise Zone.

Sec. 14-35. - Intergovernmental agreement.

The amended Enterprise Zone shall be governed, managed and operated in accordance with the Intergovernmental Agreement between the County and Municipalities as set forth in Exhibit D, which is attached hereto and incorporated into this Ordinance, by reference. The attached Intergovernmental Agreement (Exhibit D) was presented to the legislative body of Cook County and its attorney for review. The President is hereby authorized to execute this Agreement, on behalf of the County of Cook. Further, the President or his or her designee is authorized to sign all documents reasonably necessary in the furtherance of the Joint Application for said amended Enterprise Zone, to be filed with the Illinois Department of Commerce and Economic Opportunity.

Sec. 14-36- Continuation of management.

Section 4, Zone Management, including Subsections (a), (b) and (c) of the Amended Intergovernmental Agreement (Exhibit D) is identical to the likewise enumerated provisions in the Intergovernmental Agreement of the current existing Cal Sag Enterprise Zone. So as to provide continuity between the existing and amended Cal Sag Enterprise Zone, the prior zone management actions of the Parties and the Joint Enterprise Zone Governing Council are hereby adopted for the purposes of the amended Cal Sag Enterprise Zone. The adopted management actions include the appointment of representatives of the Parties to the Council, the adoption of rules and procedures by the Council and the appointment of a Zone Administrator, if any. This provision does not limit the Parties or the Council from duly implementing changes in zone management to the amended Cal Sag Enterprise Zone.

Sec. 14-37. - Severability.

This Ordinance [Article] and every provision thereof shall be considered severable and the invalidity of any section clause, paragraph, sentence or provision of this Ordinance [Article] will not affect the validity of any other portion of this Ordinance [Article].

Sec. 14-38. - Publication and effective date.

Cook County is hereby authorized to publish this Ordinance [No. 19-5324] in pamphlet form. This Ordinance [Article] shall be in full force and effect from after its passage, approval and publication as required by law.

Effective date: This ordinance shall be in effect immediately upon adoption.

Legislative History : 9/26/19 - Board of Commissioners - refer to the Business and Economic Develop

19-5331

Sponsored by: TONI PRECKWINKLE (President) and DONNA MILLER, Cook County Board of Commissioners

PROPOSED PREVIOUSLY APPROVED ITEM AMENDMENT

Department: Planning and Development

Request: Amend resolution from Class 6b to Class 8

Item Number: 18-3263

Fiscal Impact: N/A

Account(s): N/A

Original Text of Item: 

VALERIE RIETVELD/KEN-RICH CONCRETE LIFTING LLC 6b 8 PROPERTY TAX INCENTIVE REQUEST

WHEREAS, the Cook County Bureau of Economic Development received and reviewed a Real Property Assessment Classification 6b 8 application containing the following information:

Applicant: Valerie Rietveld/Ken-Rich Concrete Lifting LLC

Address: 15510 Wentworth Avenue, South Holland, Illinois 60473

Municipality or Unincorporated Township: South Holland

Cook County District: 6

Permanent Index Number: (1) PIN: 29-16-205-165-0000

Municipal Resolution Number: Village of South Holland Resolution approved June 5, 2017, amended resolution approved May 6, 2019

Number of month property vacant/abandoned: 15 months at time of initial application to Assessor

Special circumstances justification requested: Yes

Estimated Number of jobs created by this project: 3 full-time, 0 part-time

Estimated Number of jobs retained at this location: 7 full-time, 2 part-time

Estimated Number of employees in Cook County: 7 full-time, 2 part-time

Estimated Number of construction jobs: 10

Proposed use of property: Industrial

Living Wage Ordinance Compliance Affidavit Provided: Yes

WHEREAS, the Cook County Board of Commissioners has adopted a Real Property Assessment Classification 6b 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 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 6b 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 6b 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 6b 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, industrial real estate is normally assessed at 25% of its market value, qualifying industrial real estate eligible for the Class 6b 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 6b 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 6b 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.

Legislative History : 9/26/19 - Board of Commissioners - refer to the Business and Economic Develop

19-5627

Presented by: SUSAN CAMPBELL, Director, Department of Planning and Development

PROPOSED HOME INVESTMENT PARTNERSHIPS PROGRAM

Department: Planning and Development

Other Part(ies): Kensington LLC, Northbrook, Illinois

Request: Respectfully, the Department of Planning and Development within the Bureau of Economic Development submits the loan recommendation of $1,800,000.00 in HOME Investment Partnership Funds for the 24 month construction period and thirty year permanent period with a 1% permanent loan rate.

Total Development Cost: $20,730,892.00

Project Loan Amount: $1,800,000.00

Fiscal Impact: $1,800,000.00

Account(s): 1013-10757

Summary: The loan will fund the new construction of a 74-unit, fully HOME-assisted, affordable housing development targeting seniors 62 and older. The total development cost (TDC) is projected at $20,730,892. The requested HOME funds account for slightly less than nine percent (8.63%) of the TDC. Additional funding sources include Illinois Housing Development Authority Affordable Housing Tax Credits, Low Income Housing Tax Credits (LIHTC), Red Stone Capital LIHTC equity syndication and Bank of America Mortgage funding.

The borrower will be Kensington LLC, a sole purpose entity for the subject investment, under Kensington Perlmark, LLC a for-profit development firm owned and controlled by James Perlman (100%).

Legislative History : 9/26/19 - Board of Commissioners - refer to the Business and Economic Develop

19-5632

Presented by: XOCHITL FLORES, Chief, Bureau of Economic Development

BUILT COOK LOAN PROGRAM (HUD SECTION 108 LOAN GUARANTEE PROGRAM)

Department: Planning And Development

Municipality: Housing Authority of Cook County

Request: Approval of the project and authority to execute documents for a Broadening Urban Investment to Leverage Transportation (BUILT) in Cook project loan.

Purpose: Cook County’s Department of Planning and Development staff within the Bureau of Economic Development recommends the investment of $4,000,000.00 in Community Development Block Grant Section 108 Funds for permanent financing with a 20 year maturity, 20 year amortization schedule, 4.0% fixed interest rate.

The subject loans supports the long term redevelopment of two HACC developments consisting of two high rise properties, comprising 226 units of affordable Senior housing in the Village of Wheeling and City of Niles, Illinois.

Township: Wheeling, Niles

District: 9, 14

Location: (1) 200 North Milwaukee in Wheeling, Illinois (2) 9201 North Maryland Street, Niles, Illinois

Loan Amount: $4,000,000

Loan Term: twenty years

Loan Amortization: twenty years

Interest Rate: 4.0%

Application Fee: $0.00 (refinance)

Commitment Fee: 2% of loan amount

Estimated Total Project Costs: $30,700,000

Estimated Jobs Created: 60 Construction jobs

Estimated Jobs Retained: 24 (Affordable Housing)

Other Approvals: Housing & Urban Development (HUD) 108 Office, Washington, D.C., HUD Chicago Office

Fiscal Impact: $4,000,000

Account(s): N/A

Summary: Cook County’s Department of Planning and Development staff within the Bureau of Economic Development recommends the investment of $4,000,000.00 in Community Development Block Grant Section 108 Funds for permanent financing with a 20 year maturity, 20 year amortization schedule, 4.0% fixed interest rate.

The subject loans supports the long term redevelopment of two HACC developments consisting of two high rise properties, comprising 226 units of affordable Senior housing in the Village of Wheeling and City of Niles, Illinois. Maintaining and extending the life of existing public housing stock in suburban Cook County, particularly in areas of opportunity meets the established goals within both the Section 108 Program and the Consolidated Plan established within Cook County.

Cook County’s HOME program within the Department of Planning and Development within the Bureau of Economic Development previously received approval and closed an investment of $7,087,317.00 in HOME Investment Partnership Funds for the construction period of the subject development with a two year construction period, thirty year permanent loan period and 1% permanent interest rate.

Construction started in July 2017 and is currently substantially complete, less additional scope to fully rehabilitate the elevator system, including controllers and cabins and roofing certifications. The property has maintained an 78% occupancy rate across the construction period and is advancing to full (97%+) occupancy by December 2019.

Legislative History : 9/26/19 - Board of Commissioners - refer to the Business and Economic Development

https://cook-county.legistar.com/View.ashx?M=A&ID=727018&GUID=19DF724A-4AB5-4EB5-BBEB-1B973E9EC5FA