Reluctant Burr Ridge OKs Tax Break For Business

BURR RIDGE, IL – Expressing some hesitation, Burr Ridge trustees this week approved continuing a tax break for an industrial property.

Cook County has the final say.

In Burr Ridge, Plymouth 144 Tower LLC is seeking to renew the break for another dozen years for its property at 144 Tower Drive, where Worldpac and Hydra-Stop rent space.

Under the program, the county reduces the property tax load by 60 percent for the first 10 years, 40 percent in the 11th year and 20 percent in the 12th year.

Other taxpayers pick up the slack.

If Plymouth gets no tax break, it could see its property taxes rise to nearly $200,000, from $77,000, according to the village.

The industrial property at 144 Tower Drive in Burr Ridge has been receiving a property tax break for the last dozen years. The owner is seeking to extend it for another 12 years. (David Giuliani/Patch)

Plymouth promised to improve the building. Without the tax break, the business said it faced the possibility of losing its two tenants.

Plymouth was required to present a resolution from the village by this week if it wanted the county tax break. If the village did not do so in time, the business must wait another year.

At Monday's Village Board meeting, Shawn King of the Ryan tax firm, representing Plymouth, said the business needed the tax break from a competitive standpoint.

"The owner is committed to putting in over $750,000 in improvements in the building," King said. "They're going to redo the parking lot. They're going to redo the HVAC. They're going to redo the roof."

Trustee Joe Snyder asked what the owners have done for the building in the last 12 years.

King responded that Plymouth has only owned the property for the last five years.

"The original incentives were granted under different ownership. (Plymouth) hasn't had as much time. They've spent money on the property," he said.

Snyder was unconvinced.

"When they bought the property five years ago, they knew the incentives were going to come off," he said. "So for 12 years, nothing's done."

Mayor Gary Grasso suspected Plymouth negotiated a lower price for the building with the argument that the tax break would disappear.

"Now you're coming in going, 'Now we're going to invest in the property if you give us this,'" the mayor said. "Which side of the mouth are we talking out of today?"

He asked King why his client did not show due diligence and give the village more time to consider the request.

King said Plymouth would try to lease the building no matter what. But he warned about the possibility of a vacant building by next year.

"Both tenants are starting to go through a lease renewal," he said. "So the taxes at $77,000 may seem low in the grand scheme of things, but they could go down pretty significantly if you have a vacant building sitting on your hands."

Grasso said he disliked the idea of the tax break in this case, but said he wanted to keep businesses in Burr Ridge. He also noted Cook County ultimately decides.

The board voted unanimously for the incentive. Trustees Tony Schiappa and Russell Smith were absent.

After the vote, Grasso had a tip for King.

"I would go back and get an increase in your fee because your advocacy probably saved the day," the mayor said. "This is not the way to do business with this board."

The village has approved the tax break for four other businesses. The most recent was in 2019 for Medwest Associates' building at 101 Tower Drive.

According to the village, Medwest provided 74 white-collar medical sales jobs