Des Plaines machinery business continues to operate as building's future determined
Raco Industrial Corp. has been selling new and used metalworking machines for 43 years from a warehouse and offices at 2100 S. Wolf Road in Des Plaines, but now its manager fears a media report about possible construction of a new building on the site will make people believe the business is closing.
Jack Boecher, Raco's president, said the current building is for sale and would be demolished if the deal goes through.
Although a developer has received Des Plaines city council approval this week for a tax break for a new building on the site, which received news coverage, "no contract has been signed," Boecher said Friday. "There are obstacles that could prevent this happening."
He said it should be clear in a few weeks if the proposal by Seefried Industrial Properties for a $4.4 million, 72,000-square-foot speculative industrial building will go ahead.
If the deal goes through, Raco would have five months to liquidate its presence there, and it hasn't yet been determined if it might continue to operate from a new location, possibly without a warehouse.
The business has about 15 employees, down from 30 in the past, Boecher said.
Seefried is seeking a 6b property tax break for the project. The break still needs approval by the Cook County Board. Assuming the project goes ahead, demolition is expected to begin in November and construction should be complete by May 2020.
The county's 6b property tax incentive is intended to spur development of industrial properties. Under the program, properties are taxed at 10 percent for 10 years, 15 percent in the eleventh year and 20 percent in the final year. The typical tax rate for such properties is 25 percent.