One of the reasons given by cities and villages in Cook County for offering property tax incentives under the Class 6B tax abatement program is the stimulating effect on the local economy.
For Mount Prospect village board members, one example of that, and the program's potential for success, is the Cummins-Allison Corp.
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On Tuesday, the village board backed a 12-year renewal of the tax break to the company, located at 891 Feehanville Drive in the Kensington Business Center.
The program lowers the assessment level for qualified manufacturing and warehouse/distribution facilities from 25 percent to 10 percent for the first 10 years, resulting in a reduction of property taxes by about half during that period. The assessment levels are 15 percent and 20 percent, respectively, in years 11 and 12 before returning to the full 25 percent.
Cummins-Allison, which describes itself as a global leader in developing solutions to efficiently count, sort and authenticate currency, checks and coins, employs 470 workers in Mount Prospect.
The business occupies four buildings, three of which are not covered under the incentive and pay more than $700,000 annually in property taxes, according to the village. The abatement is for a portion of the fourth building.
"They're paying the full boat on the remaining parcels that they own," Mount Prospect Community Development Director William Cooney said.
According to the village, the abatement would maintain taxes for the site at about $1.40 per square foot. Without the extension, it would rise to $3.40 per square foot. Similar properties in Lake and DuPage counties pay from $1 to $1.50 per square foot, officials say.
In making its case, Cummins-Allison noted that its Mount Prospect workforce grew from 291 employees in 2002 to 470 in 2013, and its property tax contribution increased from $525,000 to $700,000.
The vote to support the abatement was unanimous.
'I'm glad that they're here, and I'm glad that they're staying," Trustee Richard Rogers said.
"I think it goes without saying that Cummins Allison is a great employer," Trustee Steven Polit added. "What we're trying to do here is remain competitive with other counties around us, to keep these businesses in our areas, and keep profits enhanced, so that they can hire people, because the most important thing that happens in our community is the creation of jobs."
Doug Mennie, the company's president, was in attendance for the board vote.
"We have a great relationship with the village," he said. "It's been a two-way street. We have contributed to the village, and the village has helped us grow."