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Palatine endorses county tax break to lure industrial tenants

Palatine's elected officials agree a Cook County property tax break would be appropriate to spur occupancy of an empty industrial building on Hicks Road.

Cook County Board members would make the final decision on whether to approve what's called a 6b tax incentive for San Francisco-based Prologis Inc., which owns the 71,100-square-foot structure. The 6b classification is designed to encourage industrial development in Cook County.

Prologis' building has been vacant since BCI Acrylic Bath Systems ceased operations June 30, 2016, documents submitted to the village show.

As part of the process, Prologis recently received a necessary Palatine village council vote in favor of a resolution supporting its quest for the county tax incentive.

Prologis attorney Michael Hoffman told the council at a recent meeting the company has tried to lease the building without success and that the tax break would help defray the cost of needed upgrades. Responding to questions from Councilman Tim Millar, Hoffman stressed the incentive wouldn't be gained until the building is 50 percent occupied.

Hoffman said Prologis is pursuing an Indiana-based health care company that would consolidate about 30 employees at its three Illinois operations in Palatine. The company would occupy 23,740 square feet, meaning more industrial tenants would be needed for the tax break to kick in at 35,500 square feet of occupancy.

“Once they move in, we hope they bring others as well,” Hoffman said.

If the county board grants the tax break, the property at 514-532 S. Hicks would be assessed at 10 percent of market value for 10 years, 15 percent in the 11th year and 20 percent in the 12th year. Properties typically are assessed at 25 percent.

Backers say the incentive helps level the playing field for manufacturing and industrial properties in Cook County with those in the collar counties.

  This 71,100-square-foot industrial building on Hicks Road in Palatine has been vacant since June 2016. The Palatine village council supports a Cook County tax incentive to help lure tenants to the building. Bob Susnjara/bsusnjara@dailyherald.com
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