Rosemont gives $1 million in TIF dollars for DHL Innovation Center
Rosemont will give $1 million in tax increment financing funds to the developer of global logistics firm DHL's new Innovation Center, where the company plans to showcase products to clients from across North and South America.
Construction of the two-story, 27,905-square-foot building is scheduled to begin this spring on a vacant 1.4-acre parcel at the northeast corner of Higgins Road and Shafer Court, just east of the Tri-State Tollway.
DHL sought the location after initially favoring a spot within the village's planned $80 million, 16-acre The Pearl District, south of Balmoral Avenue and west of the Tri-State. But ground-related issues and the absence of final certifications from the Illinois Environmental Protection Agency prompted DHL to look for a different spot
DHL plans to lease the new site from a partnership led by Janko Group and Braden Real Estate, which is purchasing the land from Orix Real Estate.
Under an agreement approved last week by the village board, the village will provide $200,000 in TIF dollars after the closing, scheduled for March 20, and another $200,000 at occupancy, targeted for the spring/summer of 2019. Annual $200,000 payments would be provided over the course of the next three years.
Mayor Brad Stephens said discussions about TIF assistance originated when DHL was considering the first location.
The village established its sixth TIF in the area in 2013 when it provided $12 million to spur construction of a nearby hotel, office building and parking garage on Higgins. Under a TIF, property taxes paid to local governments are frozen at existing levels, and taxes above that are diverted to a fund controlled by the village to pay for redevelopment and infrastructure upgrades.
The DHL building is expected to include exhibit space showcasing company products and projects in development, labs, offices and meeting rooms. It would be one of three such company facilities in the world, along with centers in Germany and Singapore. The Rosemont location is expected to draw 50 to 80 visitors 100 times a year, and employ as many as 40 people.
"We believe this will provide an enhanced regional, if not national draw to the village of Rosemont," said Nicholas Peppers, an attorney for the developer.
Development of the site also is proposed to include a small stormwater detention basin and outdoor patio fronting Higgins, as well as a service drive for truck and van deliveries along Shafer.