Elk Grove approves tax breaks for two property owners

The Elk Grove Village Board has approved property tax incentives for two industrial properties to encourage renovation in one case and to make reuse more likely in the other.

AMB Property Corp., which owns 1.5 million square feet of industrial space in Elk Grove Village, asked for a Class 6 (B) property tax abatement for a 54,450-square-foot building at 775-825 Bonnie Lane to help fund a $1 million renovation. The 6 (B) program cuts the assessment rate for qualifying industrial properties to 16 percent from 36 percent for a 12-year period.

Regency Metals occupied the building for 30 years and corrosive material it used in its plating process caused structural damage, leading to the need for major work on fire suppression, electrical, mechanical, wall floor and roofing systems, the owner said in the application. Renting the four vacant units in the building should create 28-36 new jobs.

The other property, a 19,274-square-foot building at 1950 Estes Ave., has been vacant since August 2007 due to the bankruptcy of the prior tenant. Efforts to rent it have been unsuccessful because it can't compete on price with other buildings that have the 6 (B) tax break, an attorney for the owner, the Vincent P. Connor Family 1996 Limited Partnership, said in a letter to the village.

Both applications were approved unanimously at this week's board meeting.