Forklift company relocating to Elk Grove first to get new TIF funds
A forklift and lift truck dealer planning to move to Elk Grove Village could benefit from at least $1.6 million in tax increment financing proceeds, under a deal inked with village officials.
Atlas Toyota Material Handling is moving its operations from Schiller Park to two currently vacant office buildings at 1850 Touhy Ave. and 1815 Landmeier Road in Elk Grove's business park.
Company officials say it will cost more than $17 million to acquire and redevelop the property and relocate their operations there, and without public funding, the project wouldn't be economically feasible.
Village officials say they're happy to provide money from the newly-established Busse-Elmhurst TIF to lure a company like Atlas to Elk Grove. The company estimates it will generate $18 million in sales every year - resulting in $360,000 in annual sales tax revenues - and could become Elk Grove's fifth largest sales tax producer.
In fact, Mayor Craig Johnson said, the reason the TIF was established by the village board in March was due in part to conversations with Atlas brass - a story he hopes is repeated by other businesses seeking to relocate to town.
"That's the benefit of having a TIF district," Johnson said. "We're able to attract them because of the TIF. It's exactly what we wanted."
Johnson first mentioned during his state of the village address in May that he and village officials were negotiating with a sales company interested in receiving proceeds from the new TIF. It wasn't until this week that the company was identified as Atlas.
By establishing the TIF, property taxes paid to all local governments within a 904-acre area are frozen at current levels for as many as 23 years. Taxes collected above those levels will be allocated to a special village fund used to pay for public and private improvements, including some of Atlas' costs.
Atlas is seeking reimbursement for an estimated $887,000 in moving costs, $272,000 for excavation, $250,000 for environmental cleanup and engineering, $140,000 for soil remediation and hauling, and $51,000 for storm sewers.
The village has some 20 years to pay those costs from incremental funds.
The village also agreed to provide an annual incentive that mirrors Cook County's 6b property tax break program.
Businesses that receive the 6b incentive have their property assessed at 10 percent of market value for 10 years, at 15 percent in the 11th year, and 20 percent in the 12th year. Normally, property would be assessed at 25 percent of market value.
Atlas will pay the county the full amount of taxes every year, but get reimbursed by the village the amount the company would have saved if it had an actual 6b tax incentive.
Atlas says it will bring 250 jobs to Elk Grove.
The company will begin receiving TIF money next year once it has relocated to the site.