Submitted By
Tammie Grossman, Director, Development Customer Services
Reviewed By
AMZ
Agenda Item Title
Title
A Resolution to Approve and Consent to the Class 7C Incentive Application of Mosaic Counseling and Wellness for the Property Located at 213-215 Harrison Street Consistent with the Recommendation of the Oak Park Economic Development Corporation (Oak Park EDC)
End
Overview
Overview
Mosaic Counseling and Wellness has requested, through the Oak Park Economic Development Corporation (“OPEDC”), the Village’s support for its application seeking a Cook County Class 7(c) Property Tax Incentive for the property at 213-215 Harrison Street. It is estimated that if approved, this property tax incentive would yield the new owners of this property $120,250 in reduced taxes over the programs five year period.
Body
Staff Recommendation
Approve the Resolution
Fiscal Impact
Commercial property in Cook County is assessed at 25% of market value, as determined by the County Assessor. Under the County’s Class 7(c) program, commercial properties meeting certain requirements are eligible to receive a reduced assessment level of ten percent (10%) of market value for three years, fifteen percent (15%) in year four, and twenty percent (20%) in year five. Again, all of this is determined by the Cook County Assessor’s office.
Projections show that if approved, the property tax incentive would yield approximately $120,250 in reduced taxes for the new owners of the 213-215 Harrison Street property, over the five-year program.
Background
On August 7, 2017, the Village Board approved a Resolution to support and consent to the Cook County Class 7C Incentive Application for 213-215 Harrison Streets prior owner, Harrison Street Ventures. Harrison Street Ventures did not move forward with the rehab of the property and did not execute the County’s Class 7C Incentive. Currently, the property's property tax payments are based on the building being vacant. Harrison Street Ventures contracted to sell the property to the current applicant, Mosaic Counseling and Wellness (Mosaic). Mosaic is now requesting that the Village support its Class 7c County Incentive application.
The Class 7C Incentive (Commercial Urban Relief Eligibility - “CURE”) is a Cook County five-year commercial property tax incentive program. In order to be eligible for the program, a property must meet the following four requirements: (1) Real Estate Tax Analysis - The property has declined or has had stagnant assessed values for the last six years; (2) viability and timeliness - the project will move forward in a reasonably timely basis, resulting in economic enhancement; (3) assistance and necessity - the project would not move forward “but for” the CURE Program incentive; and (4) increased tax revenue and employment - the project, with the CURE Program incentive, will result in higher real property tax revenue and will increase employment opportunities. The 7C CURE Program application contains personal financial information. The application is available for review at the Village Attorney’s Office.
The Oak Park EDC has provided the Village with a recommendation regarding this request. Said recommendation letter is attached. Below is the Oak Park EDC’s summary of how the 213-215 Harrison Street property meets the County’s eligibility criteria in the following areas: 1.) Real estate tax analysis; 2.) Evidence of vacancy; and 3.) Proof of necessity.
1.) Real Estate Tax Analysis - According to Cook County Assessor’s Office records, as produced by the applicant, the property’s assessed value has indeed stagnated or declined in at least three of the past six years. In the past three years, the property saw a 2.1% decrease in value from 2016‐2017, a 0% change from 2017‐2018, and a 0% change from 2018‐2019.
2.) Evidence of Vacancy - The property has been vacant for over 30 years, far exceeding the County’s twelve-month minimum vacancy requirement. There was a preliminary agreement reached in 2017 for the space to be filled, but it never came to fruition and the property has been vacant for another three years since that time.
3.) Proof of Necessity - Oak Park EDC has determined that there is a limited market for potential commercial occupants of this building, partly due to the significant tax burden that would be placed on a new commercial enterprise occupying this space. Utilizing the County’s 7(c) incentive will help to bring occupancy costs to a reasonable level for a new commercial enterprise occupying this space, allowing them to stabilize during the start-up phase. In addition, Mosaic will not initially be utilizing the entire building space and will be looking to lease out the remainder of the property to a sub-tenant. The 7(c) incentive will allow them occupancy cost relief throughout their search for a suitable sub‐tenant. It is estimated that the new property owner will be able to save approximately $120,250 in reduced property taxes over the incentive program's 5-year schedule, which is substantial to make sure the business can succeed.
Alternatives
Deny the Resolution or request additional analysis or information from the Oak Park EDC.
Previous Board Action
On August 7, 2017, the Village Board approved a Resolution to approve and consent to Class 7C Incentive Application of the prior owner, Harrison Street Ventures, LLC., for the 213-215 Harrison Street property.
On June 7, 2021, the Village Board approved an ordinance to add outpatient behavioral health in the HS-Harrison Street Zoning District as a special use and granted a special use permit to allow an outpatient behavioral health use located at 213-215 Harrison Street.
Citizen Advisory Commission Action
N/A
Anticipated Future Actions/Commitments
N/A
Intergovernmental Cooperation Opportunities
N/A
Performance Management (MAP) Alignment
A governance priority for the Development Customer Services Department is economic development.