Palatine amends agreement for building owner

 
 
Posted7/17/2018 5:30 AM
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  • Illinois Bone and Joint Institute wants to move into this space at 51 N. Bothwell St. in downtown Palatine.

      Illinois Bone and Joint Institute wants to move into this space at 51 N. Bothwell St. in downtown Palatine. Bob Susnjara | Staff Photographer

Palatine village council members have approved a compromise in an effort to make it easier for a downtown Palatine condominium and commercial building owner to fill space initially projected for sales-tax-generating operations.

As part of a 2004 deal to receive $5.6 million in public money and free land, the first developer of The Providence agreed that all businesses there would generate sales tax for the village in exchange for its financial assistance. However, the village allowed the sales-tax business requirement to drop from 100 percent to 65 percent in 2006.

While Palatine Providence Javin Properties LLC last month had requested the sales-tax-producing percentage be sliced to 25 percent to help land Illinois Bone and Joint Institute as new tenant, the village council Monday night approved an amendment to the 2004 agreement that can allow the first-floor space to be filled without a retail-type user.

Under the revised deal, Palatine will keep the 65 percent threshold but consider a specific proposal that could bring the sales-tax-generating tenants below that figure.

Illinois Bone and Joint must go through a formal village approval process before it can open at The Providence. Village Manager Reid Ottesen said about 48 percent of the building's businesses would be generating sales tax if Illinois Bone and Joint is approved.

Charles Hass, whose firm Mperial Asset Management LLC oversees the property, said Illinois Bone and Joint is ready to fill the vacancy at 51 Bothwell St. and pay for necessary interior improvements. Despite best efforts, he said, it's been difficult landing retail tenants for the downtown Palatine building.

"We're really trying hard, but unfortunately it's a challenge finding a retail-type-producing tenant to put in the space," Hass said.

Palatine Mayor Jim Schwantz cited the $5.6 million in taxpayers' money and the land given to The Providence as a reason to not cut the owner any slack on the sales-tax-producing requirement.

"I'm on record as saying, the last time we discussed this, I'd rather see it go to 100 percent than go down any lower," Schwantz said.

However, Councilman Tim Millar said filling the vacancy with a business such as Illinois Bone and Joint would increase real estate tax revenue.

Village documents show the most recently available commercial occupancy level at The Providence was 13,374 of 18,663 square feet of space. Tenants include Gianni's Cafe, Evolve Chiropractic, Christie's Dairy Delights, Salon MMM and Cornerstone Realty.

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