Naperville considering requirement to keep former city land on tax rolls
When Perma-Seal bought a city-owned property in Naperville in 2016, the plan was for the basement waterproofing company to move its headquarters there.
Fast-forward nearly four years, and plans have changed, city officials say.
Perma-Seal never built a headquarters at 1720 Quincy Ave. and now is trying to sell the 5-acre property, City Attorney Mike DiSanto said. He said Perma-Seal has approached the city about challenges it is encountering in selling the property because of covenants the city placed on the site during the 2016 sale.
The city sold the land in an industrial area off Ogden Avenue to Perma-Seal for $770,000, which was about 81% of the land's $945,000 appraised valuation. The sale was contingent on Perma-Seal carrying out the plan the company had proposed, DiSanto said, "getting this (site) off the tax-exempt rolls and onto a property tax-generating owner."
The council now plans to take a new action to ensure the land will continue to generate property taxes, even if or when Perma-Seal sells it.
The council is expected to review a resolution that will modify the covenants on the property to require any future owner to be a property tax-generating entity, DiSanto said. Council members voted unanimously in support of the new requirements, with Patrick Kelly, an attorney, recusing himself because the property owner is a former client.
Council member Paul Hinterlong said he would like a future owner to generate sales taxes as well. But Mayor Steve Chirico said that would be too exclusive, and it will not be required under the proposed modifications to the covenants.
"As a property owner, if you're trying to sell and you're limited to selling to somebody who only does retail sales in an industrial area, that would eliminate most buyers," Chirico said. "So I think it would be very difficult for them to sell this property if we're going to put that restriction on them."
Roy Spencer, Perma-Seal's founder and president, did not return calls seeking comment. The company's website lists locations in Burr Ridge, Chicago, Elk Grove Village and Hammond, Indiana.