Motorola to start renovation of Schaumburg site
Motorola Solutions already is applying for permits to renovate the two buildings it's keeping on its former global headquarters in Schaumburg, after village trustees voted 4-2 Tuesday to approve a redevelopment agreement for the site.
The $80 million project, intended to keep 1,600 employees at what remains of the company's former 277-acre campus, is expected to be completed by mid-2017.
The village then will begin building a redesigned road through the property at Algonquin and Meacham roads, though most of the visible work will occur in 2018, Village Manager Brian Townsend said.
The redevelopment agreement allows Motorola to receive gradual reimbursements from its property taxes up to $27 million -- a third of its investment. But the reimbursements would decrease if employment on the site falls below 1,100 workers, and drop to zero if fewer than 650 jobs remain.
Trustees also have allowed the site's new landlord, Chicago-based UrbanStreet Group, to post marketing signs along Algonquin Road and the Jane Addams Memorial Tollway. Motorola Solutions has signed a 13-year lease with UrbanStreet Group for the two buildings it's renovating.
Village board members are expected to get their next look at a developing master plan for future use in February.
Zurich North America was the first to move on to former Motorola property when the company opened its new 783,800-square-foot headquarters on the southeast corner this fall.
Schaumburg trustees Tom Dailly and George Dunham cast the dissenting votes Tuesday against the redevelopment agreement, saying they wanted stronger restrictions against Motorola cutting jobs on the site.
Dailly's suggestion of dropping the annual reimbursements by 10 percent for every 100 employees Motorola drops below 1,600 was rejected by company officials, who said it wouldn't allow them the flexibility they need to run the business.
Other trustees considered the agreement in the best interest of both sides. In addition to giving the village full control over the design of the new internal road, Motorola is withdrawing three years of tax appeals on the property.
The money for Motorola's reimbursements will come from the area's tax-increment financing district, out of property taxes paid by the company itself.
At the rate the village expects to collect money in the TIF district, it will take 20 years for Motorola to be reimbursed $27 million -- even if it remains eligible for the full amount.
The reimbursement deal would remain valid if Motorola leaves Schaumburg, as long as it found a replacement tenant willing to live by the same restrictions, including the target of 1,600 employees.