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updated: 11/17/2021 4:05 PM

Two Elk Grove Village companies to fill newly vacant industrial building in Des Plaines

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Two Elk Grove Village companies are capitalizing on the recent closure of a sheet metal factory in Des Plaines by taking over the space.

The companies -- Jack Lewin Associates and Filter Services -- are set to move into the building at 25 Howard Ave. that had been occupied by Montana Metal Products.

The metal factory closed because of the COVID-19 pandemic, according to city documents. The company auctioned its assets in September and was scheduled to vacate the 97,567-square-foot building by Monday, documents indicate.

Montana Metal Products reportedly had 57 employees at the factory.

Jack Lewin Associates offers freight forwarding, retail distribution and other services. Now based at 925 Chase Ave. in Elk Grove Village, it will use its portion of the Des Plaines building as a warehouse and distribution center.

Filter Services, 1065 Chase Ave., distributes commercial and industrial filtration products and provides related services.

The two companies will bring 60 full-time and three part-time workers to Des Plaines, with more expected over the next five years, documents indicate.

John Carlisle, Des Plaines' community and economic development director, praised industrial businesses like Jack Lewin Associates and Filter Services as "a pillar of the Des Plaines community."

Both businesses will be tenants at the Howard Avenue address. A company called TMI Properties has a contract to buy the building for about $6.5 million from an outfit called TMG Real Estate Holdings, city documents indicate.

TMI Properties has requested the Cook County Board grant it a property tax break to encourage redevelopment at the roughly 3.7-acre site.

TMI has pledged to spend nearly $565,000 to improve the property. Facade work, exterior and interior lighting improvements, painting and other projects are planned.

The regular assessment rate for commercial property in Cook County is 25% of the fair market value. The tax break being sought would reduce the assessment rate to 10% for the first 10 years, to 15% for the 11th year and to 20% for the 12th year, according to the Cook County assessor's office.

The 12-year period begins once improvements are completed, according to the county's rules.

In addition to generating property taxes, the tenants will create sales tax revenue for the city as well as income for other local businesses, such as restaurants and gas stations, documents indicate.

But TMI won't buy the building unless the county approves the tax break.

The city council on Monday formally approved a resolution supporting the request. It included a caveat: When the companies seek new employees in the future, priority must be given to Des Plaines residents.

The county board still has to approve the deal.