West Aurora asked for tax break for factory expansion

The West Aurora school district is being asked to rebate potentially $297,000 in new property tax dollars to convince a factory to stay and expand in Aurora.

Invest Aurora, the corporation that promotes development in the city, says the maker of a sports nutrition product wants to either double its existing plant or move the whole operation to South Carolina, where it has another site.

The city and the unnamed firm want to apply for an Economic Development for a Growing Economy income-tax-credit incentive from the state of Illinois.

The company would add 92,000 square feet. The project is estimated to cost about $6.2 million, according to a memo presented to the board.

To get the tax credit, it would have to hire a minimum of 15 employees a year for 10 years. Those employees would have to make at least $40,000 a year, plus benefits.

To entice the company, Invest Aurora is suggesting that the school district rebate an estimated $297,000 of the property taxes, and that the city rebate $99,000. The property currently generates about $750 a year in taxes, according to Invest Aurora.

The tax rebate would take place over 10 years. The district would rebate 90 percent of what it receives the first year, 80 percent the second year, and so on.

The board will discuss the matter at its next board meeting, and vote on the matter in early April.

State rules prohibit Invest Aurora from revealing the name of the company until the state announces it, according to David Hulseberg, president and chief executive officer of Invest Aurora. It has been nicknamed "Project Muscle."

Last year, Amazon announced it was getting a $12.9 million EDGE incentive to build two distribution centers in northeastern Aurora.