Carpentersville offers financial assistance to new Otto tech center
A new technology and manufacturing center being constructed by Carpentersville's largest employer will receive a multimillion-dollar contribution from the village.
Otto Engineering expects to break ground next month on a 90,000-square-foot facility that will house the company's tooling, stamping and manufacturing operations. The building at 140 Carpenter Blvd. also will contain space for an apprentice program to train young workers for a career in the trades, Otto President Tom Roeser said.
The village board this week approved development plans for the tech center and pledged to reimburse Otto for $3.5 million of construction costs. The contribution will be paid over a 15-year period using incremental property tax revenue, Economic Development Director Patrick Burke said.
"We really are excited to see this move forward," Burke said. "It's really important that we support projects that create high-paying, high-skilled jobs, and this will definitely do that."
The property falls within the village's Old Town tax increment financing district, where any tax revenues generated above a base assessed value can go back into redevelopment. The village already committed $300,000 in TIF dollars to help fund the project's ongoing first phase, which includes stormwater management, engineering work and infrastructure improvements.
Because of soil and drainage issues, the 30-acre property at the corner of Carpenter Boulevard and Cleveland Avenue was unusable before Otto purchased and began improving the site last year. The tech center will take up about 10 acres, Roeser said, but the project will prepare the remaining 20 acres for future development.
If it becomes necessary, Carpentersville also agreed to fund roughly $1.2 million in roadway and intersection improvements to accommodate growth and additional truck traffic, Burke said.
The tech center, less than a mile from Otto's main campus at 2 E. Main St., likely will be complete by summer 2019, Roeser said. It is expected to employ 50 people with an average salary of $75,000 per year.
Roeser said he chose to expand his company within Carpentersville largely because he's noticed a wave of support from the village and its new leadership. Between his investment and the village's assistance, Roeser said he believes the tech center project will attract new businesses and residents to the area.
"I've lived the American dream, and government has been the biggest hurdle," Roeser said. "I've seen an entirely different attitude of support on this project. I think that's going to bode well for other businesses, especially manufacturers, to say, 'We want to be part of this team.'"