Developer wants tax exemption

A corporate real estate firm will approach the Mount Prospect village board tonight to ask trustees to recommend it receive a property tax exemption to build two office/warehouse buildings near the northwest corner of Algonquin Road and Route 83.

The Alter Group, which has offices in Skokie, is building two buildings totaling 250,000 square feet that will be similar in character to Opus North Corp.'s Briarwood Business Center on Linneman Road between Algonquin Road and Dempster Street.

"There has been a significant uptick in interest in the land down there due to the O'Hare expansion," said Mount Prospect Community Development Director William Cooney. He said he was told that land values are pushing $20 per square foot for industrial property.

Cooney said The Alter Group has already been approved for a permit and should be breaking ground within a fee weeks.

However, the group is seeking what is known as a Class 6B property tax exemption.

Commercial properties in Cook County are assessed at 38 percent of their market value. However, the county does offer the 6B incentive, under which qualifying properties would be assessed at 16 percent during the first 10 years, 23 percent during the 11th year and 30 percent during the 12th year.

The intent is to make up for a competitive tax disadvantage when measured against neighboring counties with a more favorable assessment rate. Cook County assesses commercial property at more than twice the rate of residential property, while all other counties in Illinois assess commercial and residential property the same.

Mount Prospect has recommended incentives for such properties as Briarwood. Cooney said the village applies a "but for" test in recommending the 6B, which must be given final approval by Cook County. In other words, is there a deal regardless of whether 6B is offered? "If there is, then we'll start looking at it a little bit fuzzy."

The village looks at information on surrounding industrial developments that have recently been on the market and their leasing rates, he said.