Industrial Owners Line Up for Tax Breaks

CHICAGO-The Cook County Class 6(b) property tax abatement is being used here to fuel more than $24 million in industrial expansions and developments. The tax break will be used by property owners on the Northwest, West and South sides under proposals expected to be passed later this month by the city council.

The abatements reduced the assessments on the property from 36% of fair market value to 16% for the first 10 years, with increases in the 11th and 12th years before they are phased out.

Quality Croutons is building a $13.1-million, 187,000-sf building at 1321 W. 119th Street, which formerly was a brownfield site. In addition to the tax break, the city will sell 8.5 acres for less than $94,000, a write-down of nearly $750,000 from the property’s appraised value. The African-American-owned food manufacturer will move to the West Pullman neighborhood from 825 W. 37th St.

Meanwhile, Cloverhill Pastry-Vend Corp. will use a second Class 6(b) abatement to help finance a $10-million expansion of its plant at 2035 N. Narragansett Ave. The 140,000-sf facility was built in 1995 and the expansion will add another 70,000 sf. The latest Class 6(b) incentive, which is credited with keeping the company in Chicago, is expected to save Cloverhill $585,000 over the next 12 years.

Murrihy Pallet Co. is expected to save $178,000 over the next 12 years as a result of the Class 6(b) reduction on its expanded warehouse at 1919 W. 74th St. The project is expected to cost $645,000.

Also, the city is selling a 2,500-sf parcel at 4341 W. Kinzie St. to Robert’s Sheet Metal for $10,600, which allows the company to expand its manufacturing facility by 24,000 sf.