Schaumburg could see further expansion of its industrial base later this year if the Cook County Board approves three companies' requests for property tax incentives to help them move into long vacant properties.
Village trustees Tuesday will vote on whether to recommend the requests for Class 6B tax incentives sought by Connor Electric Services of Streamwood, Shigiya of Wheeling and Illinois Process Equipment, which wants to add a second site in Schaumburg.
"I think it's a sign of some optimism right now," Schaumburg's Economic Development Coordinator Matt Frank said of the requests.
The proposals are evidence that the industrial and retail sides of the village's economy remain strong, he added. Though the vacancy rate for office space remains high in the suburbs, there's hoped to be a trickle-down benefit if manufacturing continues to improve, he said.
Especially promising, Frank said, is Japanese company Shigiya's proposal to build a new 10,000-square-foot building on a parking lot at the Woodfield Business Center, 651 State Parkway.
Cook County already has approved more than 50 Class 6B tax incentives in Schaumburg, but most are for the rehabilitation of abandoned buildings. Shigiya's proposal for a new building projecting a high-end corporate image is fairly unique, Frank said.
Shigiya plans to transfer two existing employees and hire eight new ones with an average salary of $48,125. The proposed $1.5 million warehouse and distribution facility must go through the village's design review process first, but plans are to break ground during the fall.
Connor Electric Services wants to buy and renovate the 5,000-square-foot facility at 649 Estes Ave. for the warehousing and distribution of electrical materials and supplies. The company will transfer five employees and hire one more with an average salary of $60,000. The building also will be the home base of 27 field electricians.
Illinois Process Equipment will hold onto its existing site in Schaumburg but also wants to renovate a 16,654-square-foot building at 1110 Morse Ave. The company will transfer 14 employees and hire one more with an average salary of $59,670.
Cook County's Class 6B incentive program is intended to keep the county competitive with collar counties in attracting industrial, manufacturing and warehouse operations.
The incentive works by lowering the level of assessment on a property from 25 to 10 percent for 10 years, effectively reducing property taxes by about half during that period. The level of assessment then gradually rises during the 11th and 12 years before returning to normal.
Only industrial properties that have been on the market for sale or lease for two years or more are eligible.