ADP moving 1,000 employees from Elk Grove Village to Zurich building in Schaumburg
A deal has been announced for ADP payroll services to relocate from its Elk Grove Village offices to join Wheels, Inc. in leasing space Zurich North America has made available for tenants at its iconic Schaumburg headquarters.
On Aug. 1, the payroll company will move 1,000 employees to Schaumburg.
Representatives of Zurich confirmed the deal Friday, though their counterparts at ADP did not respond to a request for comment.
Village Economic Development Director Matt Frank said the presence of three great employers in the building will enhance the vitality and amenities in Schaumburg’s redeveloping 90 North area.
In July 2023, the insurance giant announced it was putting up for lease about 360,000 square feet of its distinctive 783,800-square-foot headquarters, reflecting the post-pandemic evolution of the suburban office market.
Eleven months later, Wheels, Inc., a fleet management and mobility solutions firm that had a location in Des Plaines, said it would lease roughly 200,000 square feet of that space.
And now, yet another 11 months later, ADP has made official its intention to fill the remaining leasable space.
In October 2016, Zurich moved 3,000 employees from its two previous 20-story towers near Woodfield Mall to the new building along the Jane Addams tollway at the southeast corner of the redeveloping former Motorola campus.
In late February, Schaumburg and Zurich North America settled a three-year legal battle over public financial assistance from the village in exchange for guarantees of on-site workforce size at the insurance company’s headquarters.
The settlement resulted in Schaumburg immediately paying Zurich $20 million in withheld reimbursement funds from the area’s tax increment financing (TIF) district. Meanwhile, the maximum amount Zurich can receive over the life of the district was lowered from $100 million to $80 million.
TIF funding generally pays for infrastructure improvements within the district up to the end of its 23-year life span.
At the root of the dispute was whether a development agreement with the village required Zurich to have a certain number of employees regularly working in the building or just based there, Assistant Village Attorney Howard Jablecki said.
According to a joint statement, the settlement was reached through mediation and sets new terms establishing the on-site presence of workers in the building by Zurich and subtenants like Wheels, Inc. and ADP as the basis for future incentives.
Prior to the village withholding payments, Zurich had received $18.6 million in TIF funding.
The Zurich building still housed about 2,500 employees when the COVID-19 pandemic shuttered offices in March 2020. It remained largely unused even 15 months later.
The village’s decision to withhold TIF allocation payments led to Zurich filing suit in February 2022.