New Rosemont tax rebate program could mean $225,000 for hotel
Rosemont will give property tax rebates to a hotel and two restaurants under a new program aimed at creating "parity" among local businesses, village officials said.
The property tax incentive program would benefit three existing businesses within The Pearl District, the 16-acre entertainment area south of Balmoral Avenue and west of the Tri-State Tollway: The Rose Hotel Chicago O'Hare, Carmine's, and Truluck's Seafood Steak & Crab House.
The tax break also was created - upon 6-0 vote of the village board this week - with an eye toward attracting development to the remaining village-owned 40,000-square-foot site within the district. Though the rest of The Pearl opened in 2018, village officials have attributed developers' reluctance to higher Schiller Park Elementary District 81 taxes in that area, relative to the Rosemont Elementary District 78 taxes most other Rosemont businesses pay.
District 81 operates three schools - two elementaries and a middle school - while District 78 has a lone K-8 school within Rosemont's gated community.
Under the program, property owners would be eligible for a 75% rebate of the difference between what they pay District 81 and what they would pay District 78.
For example, Janko Group, owner of the five-story, 165-room hotel, told village officials they'd pay $300,000 less if they were across the street. The hotel could get as much as a $225,000 rebate through the program.
The rebate would come from the village's general fund.
"We're trying to keep things fair for the Rosemont businesses," Mayor Brad Stephens said.
But so far eligibility for the rebates wouldn't extend to a big commercial property across the tollway that is also within the Schiller Park school district: Fashion Outlets of Chicago. The two-story, 530,000-square-foot indoor mall owned by Macerich has 130 stores, and property taxes are passed through to them.
Because of the legal and accounting complexities involved, the mall wasn't considered for the program, Stephens said.
Back at The Pearl, Dave & Buster's won't get a rebate because it operates under a lease with the village, whereas during the redevelopment process, the village gave land to Braden Real Estate for the two restaurants and to Janko Group for the hotel.
To get the rebate, the businesses must have no pending litigation to reduce their taxes through the Property Tax Appeal Board or circuit court, and they must show proof that they've paid their taxes.
The rebate program takes effect after the second installment of 2023 taxes are paid in late 2024.