Des Plaines OKs new bank, tax incentives for warehouse operation

The Des Plaines City Council this week approved a conditional use permit for a new bank with a drive-through window, and tax incentives clearing the way for Warehouse Direct to move into town.

The site where a JP Morgan Chase Bank with a drive-through will be built, 1590 Lee St., is currently vacant. The .93-acre property located at the northwest corner of Lee and Oakton streets consists of two parcels. The corner parcel has been undeveloped for several years while the building and parking lot at 1560 Lee Street was previously home to an Arby’s restaurant, officials said.

“Chase would be a real improvement,” 7th Ward Alderman Dan Wilson said.

However, 6th Ward Alderman Mark Walsten voted against the project because the bank would not generate any sales tax revenue for the city.

“There will be zero dollars generated in sales tax revenue from now until however long this building is there,” he said.

Ward 4 Alderman Dick Sayad agreed, but added it is up to the property owner how they want it developed.

The vote was 7-1 in favor of moving the proposal to first reading.

On the recommendation of the zoning board, the city council denied the applicant’s request for a variation to allow three wall signs, but it instead approved one 115-square-foot wall sign on the east facade.

The city council also approved a tax-sharing agreement with Warehouse Direct, to be located at 2001 N. Mount Prospect Road.

As part of the deal, the city would receive $650,000 in yearly property and sales tax revenue from the business, while agreeing to share 50 percent of any additional revenue, said Mike Bartholomew, community and economic development director.

“It’s a building that has been vacant for three years that they are looking to occupy right away,” he said.

The city council unanimously supported the agreement.

“It’s very rare to find a warehouse inhabitant that’s off the beaten path that’s going to generate anything but property tax,” 3rd Ward Alderman Matt Bogusz said. “It will have direct ripple effects on our budget in 2012.”

The council earlier approved a resolution supporting a Class 6b application by the property owner, an investment firm that will be leasing the site to Warehouse Direct, which sells office and school supplies.

Cook County ultimately must approve any 6b classification, which allows property to be assessed at a lower rate than the typical industrial property for 12 years. Warehouse Direct could bring 250 to 300 new jobs to the city.