Des Plaines council backs tax deal for Higgins Road complex
The company that owns land being eyed for a five-story hotel on Des Plaines' southeast side is slated to receive a significant property-tax discount as an incentive to build.
The city council on Monday formally supported reducing the assessment rate for the 5.75-acre site at 1700 W. Higgins Road, which includes the 1700 Higgins Centre office building.
The deal would apply to the entire site, not just the roughly 1 acre being considered for a 107-room, $7.5 million Homes2 Suites by Hilton hotel.
The proposed tax cut awaits final approval from the Cook County Board. No opposition is expected.
If approved, the change likely would cut the property's annual tax bill by $600,000 for the 12-year life of the deal, documents show.
The office center would remain if the hotel is built.
An Australian company called Mariner Higgins Centre owns the property and requested the tax break.
Mariner wants to sell some of the land, southeast of the office building, to an Itasca-based hotel development and management company called NexGen Hotels that will build the proposed hotel. The assessment reduction would transfer to NexGen, said Des Plaines Economic Development Manager John Carlisle.
Because of the anticipated sale, the council approved the tax break with two resolutions -- one covering the land for the hotel and one covering the rest of the site.
The regular assessment rate for commercial property in Cook County is 25% of the fair market value. The break being sought would reduce the assessment rate to 10% for the first 10 years, to 15% for the 11th year and to 20% for the 12th year, according to the Cook County assessor's office.
The 12-year period begins once improvements are completed, according to the county's rules.
In related action, the city council on Monday agreed to add the proposed hotel to the official development plan for the site and eliminate a once-proposed restaurant.
Additionally, the council agreed to sell Mariner Higgins Centre some undeveloped land along nearby Webster Avenue so a parking garage can be built on the property's northwest side.
The council also agreed to expand the borders of a special tax zone to include the proposed Homes2 Suites hotel and other property. The move allows Des Plaines to collect more revenue from room usage and parking fees from the proposed hotel.
All three of those moves were approved as part of the council's consent agenda without any council discussion.