Arlington Heights endorses tax break to fill office space
With more of the suburban workforce logging on from home and office spaces growing ever more empty, Arlington Heights officials have endorsed a tax break for a company that plans to move into one of those vacant workspaces.
International Services Inc., a management services firm that provides business and tax consulting to companies, plans to purchase and renovate a four-story, 94,000-square-foot office building at 3850 N. Wilke Road.
The deal is contingent on getting a Cook County Class 7c tax abatement, which would allow the commercial property to be assessed at lower levels for the next five years.
The village board voted unanimously Monday to support the company's request, which now goes before the county board for final consideration.
Company officials say their relocation to Arlington Heights from 1250 Barclay Blvd. on the Lake County side of Buffalo Grove wouldn't be financially viable without the incentive, due to Cook County's higher taxes.
Arlington Heights officials said the deal would be a positive, considering the prospect of a large employer coming to town amid the current economic climate.
International Services is planning a $2.7 million interior renovation, roof repairs, heating and cooling system upgrades, parking lot resurfacing and new landscaping. The building has been vacant since August 2019.
Officials say they also would bring 350 full-time and 25 part-time jobs to Arlington Heights, with the goal of employing a total of 600 in the next five years.
The company also is purchasing the adjacent site at 3800 N. Wilke Road, but it doesn't have plans for that building yet.
The office vacancy rate in Arlington Heights is nearly 20%, but the relocation of International Services would drop that figure by almost two percentage points, officials said.
The site is estimated to generate $2.65 million in property taxes over the next five years, compared to only $1.62 million if it were to remain vacant, officials said.
Under the county's Class 7c program, commercial property is assessed at 10% for the first three years, 15% in the fourth year and 20% in the fifth and final year. Normally, properties are assessed at 25%.