Tax incentive lures Elk Grove manufacturer to Schaumburg

An expanding manufacturer of turbine blades in Elk Grove Village will be taking advantage of a Cook County property tax incentive to move to a larger, long vacant quarters in Schaumburg.

Energy Parts Solutions, Inc. plans to move from its current headquarters at 2201 S. Lively Blvd. in Elk Grove to a 25,000-square-foot industrial building at 820 Estes Ave. in Schaumburg. The company’s new home has sat vacant for more than two years.

Schaumburg Community Development Director Julie Fitzgerald said the company plans to invest $25,000 in the building and add four more employees to its current staff of 13 within the next year.

Representatives of Energy Parts Solutions could not be reached for comment Wednesday.

The Class 6B tax incentive program the company is using is intended to keep Cook County competitive with surrounding areas for industrial, manufacturing and warehouse operations.

The incentive works by lowering the level of assessment on a property from 25 percent to 10 percent for 10 years, effectively reducing property taxes by about 60 percent during that period.

The level of assessment then gradually rises again during the 11th and 12th years of the incentive before returning to normal.

Only industrial properties that have remained vacant after being on the sale or leasing market for two years are eligible for the incentive.

Though Schaumburg officials signed off on the deal Tuesday, the incentive ultimately must be approved and administered by Cook County.

With the economy recovering from a severe slump, the Class 6B incentive is becoming increasingly common. Cook County has approved more than 50 of them in Schaumburg alone over the past decade.

Recent recipients in Schaumburg have been Gonnella Baking Co.’s Wiley Road facility and the new headquarters of landscaping and snow removal business RB Enterprises USA on Tower Road.