THE JOURNAL & TOPICS NEWSPAPERS | WEDNESDAY, MARCH 19, 2008
Tax Break Keeps Company In Elk Grove
An Elk Grove Village company plans to take over and renovate an abandoned building as part of an expansion that will create 30 new jobs in the village.
Packaging Machines International (PMI) will stay in the village largely because it was granted a "Class 6B" property tax incentive.
In a letter to the village, lawyers for the company said PMI would move out of Elk Grove Village to DuPage County or elsewhere if not granted the tax incentive.
PMI is a manufacturer of packaging machinery.
"With out the Class 6B, PMI will most likely be forced to move to nearby DuPage County or one of the other collar counties which would provide a lower property tax," read the letter.
"It is PMI's wish to stay in Elk Grove Village and keep their long standing relationship with the village."
"The facility at 930 Lee St., with much needed improvements and the Class 6B incentive, will be able to meet PMI's needs for the future."
PMI plans to move its operations to the Lee Street location from its current location at 1260 Lunt St. in Elk Grove Village.
The 6B tax incentive lowers the property tax assessment from 36% of fair market value to 16% for 12 years if a property is vacant for two years, if they are making significant improvements to the property or if they can cite another special circumstance.
The site at 930 Lee St. has been vacant for less than two years but requested a special circumstance citing their growing business and desire not to move out of the village.
Elk Grove Village Mayor Johnson has called the 6B incentive a "win, win" in the past, saying the tax break encourages businesses to move to Elk Grove Village.
He said often times tax breaks can significantly offset the costs to renovate a property. Once the property is renovated, the property's value significantly increases bringing the village higher taxes on the property after the tax rate returns to the normal 36% rate after 12 years.
The village has granted about a dozen 6B tax incentives in the last few years.
Company officials were not immediately available to provide more details about the new jobs or their operations.