Developer plans to build mammoth warehouse and distribution building in Palatine
A mammoth warehouse and distribution building has been approved for an industrial area of Palatine, along with its developer gaining a recommendation for a Cook County property tax break.
Palatine village council members this week approved the proposal from Rosemont-based Conor Commercial Real Estate to demolish the former H.B. Fuller sealant factory at 315 S. Hicks Road and replace it with the new 337,800-square-foot structure.
"It's a blighted site," Conor Executive Vice President Brian Quigley said.
Conor, the development arm of McShane Construction Co., intends to invest at least $18 million to build the speculative distribution and warehouse facility. The building will sit on 18 acres just north of Northrup Grumman Corp. in Rolling Meadows.
Quigley said it's hoped Conor completes its purchase of the property in August.
H.B. Fuller previously manufactured building and construction products at the factory. Deputy Village Manager Michael Jacobs said the company wound down its operations at the sealant plant about two years ago.
Plans call for demolition of two structures and cleanup of contaminated soil to begin in September. The new building should be ready in mid or late 2020, Quigley said.
Quigley declined to reveal the names of potential users, but said he expects a mix of offices, warehouse operations and manufacturing in the 337,800-square-foot facility.
"We've already talked to one big e-commerce company about this site," he said.
Palatine Village Manager Reid Ottesen said he hopes Conor's plan spurs more reinvestment in the industrial area around South Hicks Road.
"I think it's exciting," Ottesen said. "It should have minimal impact on services. Depending on the use that goes in there, it could be some higher water usage, but from a public safety standpoint and stuff, minimal impact. You're not going to have an impact on the taxing agencies."
Palatine village council members are recommending that the Cook County Board approve the 12-year property tax break sought by Conor.
Under Cook County's 6B tax classification program, a property is assessed at 10% of market value for the first 10 years, 15% for the 11th year and 20% in the 12th year. Without the incentive, the land would be assessed at 25% of market value.
Quigley said the Palatine project initially will create jobs in construction, architecture and other professions. He said 260 parking spaces will be created on the property with the expectation of that many employees working there.
Conor has about 1.5 million square feet in speculative industrial space under construction in the Chicago area, including in Prospect Heights, Winfield, Elgin and Hoffman Estates.
"We've got projects going in all those communities and we're looking for similar tenants in all of those locations," Quigley said. "Some folks want to lease. Some folks want to own."