Lake Zurich throws support behind local manufacturing with $626,000 incentive
A Lake Zurich manufacturing company will receive a $626,000 incentive from the village toward an $8.5 million expansion as the first agreement involving a newly created industrial park financing district.
The pact with JGS Lake Zurich West LLC calls for the village to rebate that amount in future property taxes over several years for a new facility at 550 Enterprise Parkway.
JGS is a component of Geremarie, which for 20 years has been operating at 1275 Ensell Road in the Lake Zurich Industrial Park, north and west of Route 22 and Quentin Road on the village's east side.
Geremarie began making high-precision aluminum components for the boat industry and in 2019 became an approved supplier to a large U.S. based surgical-medical equipment provider, according to the company.
The automated facility employs 247 full-time workers and has more than 1.5 miles of manufacturing conveyor belt lines at its plant/headquarters. Several additions to the building have been made, but expansion is needed because of increased demand for its products, according to the village.
The company had been building a new facility for warehousing and storage at 550 Enterprise Parkway in the industrial park. But it changed course, applying for and receiving village help to retool the building into a new manufacturing line for JGS.
According to the village, JGS certified the $8.5 million project could not be done without financial assistance.
The redevelopment agreement, approved 6-0 by the village board Monday, represents 7.4% of the project cost.
"This is an early win for Lake Zurich's newly created industrial TIF (tax increment financing) district - exactly the sort of project this TIF was intended to support," said Kyle Kordell, assistant to the village manager. "The village is happy to throw our support behind Geremarie and Lake Zurich manufacturing."
In a TIF district, property values are frozen for taxing bodies within a designated area for up to 23 years.
Taxes are calculated on the increased value as development occurs. The difference - also known as the increment - goes into a special fund used for site improvements and other expenses in the designated area.
In this case, the village expects the JGS project to generate an annual increment of about $100,000. The agreement is structured to provide the company with 75% reimbursement, estimated at $75,000 to $80,000 per year, until the incentive is closed out.
The TIF district was created in January to provide a long-term funding mechanism to make infrastructure improvements and support industrial expansion and modernization, according to the village.
This project is for 33,000 square feet of new manufacturing and warehouse space. Eight to 10 new employees would be hired to operate and maintain the new line with potential for growth over time.
"New jobs created would be clean manufacturing positions as well as office support staff," according to the village. Geremarie's existing facility, which also is its headquarters, will remain in full production.