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Des Plaines recommends tax break renewal for manufacturer

Des Plaines aldermen recommended a long-term tax break for a carpentry manufacturer Monday, despite concerns the measure sets a harmful precedent for the city.

Northwest Millwork owner Richard Hybiak asked aldermen to renew the company's 6b tax incentive - a tool used to spur industrial development on blighted property - because the Great Recession in 2008 hurt business. The company started receiving the 12-year property tax break in 2006 but couldn't take advantage of savings when the economic downturn slowed residential construction, Hybiak said.

Without the renewal, the company could be forced to shut down, Hybiak said. The tax break would save the company about $20,000 annually on the property at 455 E. Jarvis Ave.

A 6b tax break requires companies to make significant building upgrades or additions. The company plans to spend $20,000 to $50,000 on roof maintenance and heating equipment improvements withing two years. As a policy, however, city staff recommend the tax break only for substantial renovations or vacant property or full redevelopment on blighted properties.

Alderman Jim Brookman, whose 5th Ward includes the property, argued the city should offer the tax break because the company faced a unique hardship during the recession.

Eighth Ward Alderman Mike Charewicz opposed the measure. Charewicz said approving the renewal sets a precedent in which large businesses could ask for the same incentive.

"In order for consistency, I'll be voting no," Charewicz said.

The Cook County Board of Commissioners would still need to approve the tax break. Board members typically approve such measures.

Aldermen Brookman, Malcolm Chester, Denise Rodd, Dick Sayad and John Robinson voted for the proposal. Charewicz and Alderman Don Smith opposed the renewal. Alderman Patti Haugeberg was absent.

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