Schaumburg, Zurich settle suit over public payments for workforce size
Schaumburg and Zurich North America settled a three-year legal battle Tuesday over public financial assistance from the village in exchange for guarantees of on-site workforce size at the insurance company’s iconic 783,800-square-foot headquarters.
The settlement resulted in Schaumburg immediately paying Zurich $20 million in withheld reimbursement funds from the area’s tax increment financing (TIF) district. Meanwhile, the maximum amount Zurich can receive over the life of the district was lowered from $100 million to $80 million.
TIF funding generally pays for infrastructure improvements within the district for up to 23 years of its existence.
The Zurich building opened in 2016 on what was once part of Motorola’s sprawling campus. Village officials included workforce requirements in the development deal because Motorola was in the process of moving headquarters.
At the root of the dispute was whether the agreement with the village required Zurich to have a certain number of employees regularly working in the building or just based there, Assistant Village Attorney Howard Jablecki said.
According to a joint statement, the settlement was reached through mediation and sets new terms establishing the on-site presence of workers in the building by Zurich and subtenants like Wheels, Inc., as the basis for future incentives.
“We’re pleased we have reached an agreement that allows us to put this matter behind us and that outlines a path forward to bring people into Schaumburg who will continue to contribute to the community and provide economic benefits to the region,” Schaumburg Village Manager Brian Townsend said in the statement.
Barry Perkins, chief operations officer for Zurich North America, also spoke to the repairing of a long and productive relationship.
“Schaumburg has been home to Zurich's North American headquarters since our relocation from Chicago in 1980,” he said. “We are proud of our legacy of supporting both our customers and the village of Schaumburg, and we will continue to contribute to the community and provide economic benefits to the region.”
Prior to the village withholding payments, Zurich had received $18.6 million in TIF funding.
The Zurich building housed about 2,500 employees when the COVID-19 pandemic shuttered offices in March 2020. It remained largely unused even 15 months later.
The village’s decision to withhold TIF allocation payments led to Zurich filing suit in February 2022.
Jablecki said Schaumburg’s only other case of this type still pending — of which he was unable to comment further — concerns Motorola’s remaining presence.