Schaumburg considering second tax incentive for industrial project replacing neighborhood

Schaumburg trustees next month will consider not just one but two tax incentives for a project proposed to replace 19 unincorporated homes near the village’s southwest corner with a pair of spec industrial buildings.

Village officials have already been working toward the Dec. 9 approval of a tax increment financing district for Chicago-based Logistics Property Company’s plan to construct the buildings totaling 436,500 square feet where the homes on Long Avenue currently sit.

But at the same meeting they also will decide whether to recommend the Cook County Board approve a Class 6B tax incentive for the project.

The two types of incentive were created with different benefits in mind.

A TIF district is intended to be a source of funding for public improvements associated with a private redevelopment.

The 6B incentive is meant to encourage industrial development in Cook County when property taxes in the collar counties are normally lower.

Schaumburg Economic Development Director Matt Frank said this project is so close to DuPage County that the 6B request seems especially appropriate.

Schaumburg Mayor Tom Dailly said its uncommon for a project to apply for both incentives, but this proposal my be worthy of consideration.

The developer told the village it had determined the project wouldn’t be feasible without the 6B, given the Cook County property tax burden.

“Logistics Property Company is looking forward to working with Schaumburg to deliver two state of the art logistics facilities that will be a win for all stakeholders involved,” company Vice President Ben Fish said. “The 6B tax incentive is a critical tool for all new warehouse construction projects in Cook County that will allow us to attract the highest quality tenants possible for our buildings.”

The incentive essentially cuts a site's property taxes in half for 10 years, then gradually increasing them during the 11th and 12th years before returning to normal.

Logistics Property Company has all the houses and other properties along Long Avenue under contract to purchase, with the closings expected early in 2026.

The 70-acre TIF district awaiting approval Dec. 9 works by freezing the amount of property taxes local governments receive at the level of the first year. As taxes subsequently rise, the increase goes to a municipally held fund for eligible public improvements.

A TIF district lasts for up to 23 years. This one is estimated to generate $111 million in eligible funding as the land value rises from today’s $2.8 million to a projected $53.5 million.