Palatine endorses Studio 41 for Cook County tax break
Palatine village council members agree Studio 41 Home Design Showroom's plan to move into a closed automobile dealership is worthy of a Cook County tax break.
The council Monday night voted in favor of recommending that the Cook County Board approve what's called a 7C tax classification for Studio 41. The tax break would cover at least five years.
Under the 7C designation, qualifying projects receive a 10 percent reduction of fair market value in the first three years, then 15 percent in the fourth year and 20 percent in the fifth year. The Studio 41 property would be assessed at 25 percent of fair market value without the tax break.
Studio 41, which specializes in home fixtures and décor, is projected to open in spring 2019 in the former AC Imports Jaguar dealership, 1410 W. Northwest Highway, just south of Dundee Road. AC Imports ended a 50-year run when it vacated the building in January 2017.
"They're planning on doing some significant improvements to the building," Deputy Village Manager Michael Jacobs said after the session. "They want to expand back into what used to be the auto repair area and convert that into a showroom."
Studio 41 attorney David S. Martin said in a letter to village officials the renovation of the former AC Imports could cost at least $500,000. Work began after Studio 41 bought the 35,000-square-foot building in April.
About 25,000 square feet is planned for showroom space, according to Studio 41. Up to 30 employees are expected in Palatine, with the potential to double the staff as business grows.
Studio 41 executive general manager John Mannion told the Daily Herald the business was contacted by a Palatine official more than a year ago to gauge potential interest in the former AC Imports building.
With locations in Schaumburg, Naperville, Chicago, Glenview, Lincolnwood and Highland Park, Mannion said, the company has been looking to tap into a market deeper in the Northwest suburbs.