Possible tax break riles Dist. 214

Tax breaks spur development, but they're not so great for school districts that lose thousands of dollars in taxes every year because of them.

In August, Mount Prospect trustees approved a property tax incentive for The Alter Group, which is planning two industrial buildings near the northwest corner of Route 83 and Algonquin Road.

Northwest Suburban High School District 214 officials aren't big fans of the idea and are trying to stop the tax break before it's approved by Cook County.

District 214 board member Bill Dussling said his board heard about the tax break after reading an article in the newspaper.

"It's kind of cavalier," said Dussling at a school board meeting this week. "We are a part of this community and shouldn't be treated like this."

The Alter 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. With the 6B incentive, they 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 two Mount Prospect office/warehouse facilities, with addresses at 1660 and 1780 Wall St., total 256,000 square feet and would cost $12 million to build. An estimated 300-plus jobs would be at the site.

With the 6B tax break, the site would generate about $400,000 annually in taxes, $100,000 of which would go to District 214. Without the tax break, the site would generate $800,000 in total taxes, with $200,000 going to District 214.

Currently, District 214 gets about $37,000 of the total $150,000 in taxes from the site.

Mount Prospect Community Development Director William Cooney doesn't know if District 214 can stop the tax break.

"The village is responsible for the overall economic development of the village," Cooney said. "Without the 6B, we would be at a competitive disadvantage."

The village applies a "but for" test in recommending the 6B, which must be given final approval by Cook County, Cooney said. That means it judges that, but for the tax break, the development wouldn't take place.

The 6B tax breaks have been around since 1995 and are common. Mount Prospect currently has about 10 such tax breaks. Arlington Heights has another 10, according to Arlington Heights Village Manager Bill Dixon.

Cook County has the final say on whether to grant Class 6b status to the firm, which has offices in Skokie.

District 214 officials plan on filing an objection with Cook County Assessor's office, according to Deb Parenti, associate superintendent for finance and operations.