Council backs Cook County tax incentive to keep Vital Truck and Van relocating to Elgin

Elgin City Council unanimously approved a resolution supporting a Cook County Class 6b commercial property tax incentive for 301 Ramona Avenue, a move staff said is necessary to secure Vital RE LLC’s planned purchase and investment in the property.

City staff presented details for the proposed transaction: the 5.5-acre parcel contains two industrial buildings totaling roughly 24,500 square feet, and Vital RE plans about $500,000 in improvements. Staff said the sale price is about $2.9 million and that Vital Truck and Van intends to move its Illinois operations from Batavia to Elgin with approximately seven full-time employees already committed and another 10 full-time-equivalent jobs to be created when renovations are complete. According to staff’s analysis, the incentive would increase taxes generated to Cook County and other taxing bodies over a 12-year period compared with leaving the property vacant.

Council members discussed the cross-county taxation dynamic (properties in Elgin fall into Cook County or Kane County taxing districts) and emphasized the economic-development rationale of using the Class 6b incentive to attract and retain jobs and to rehabilitate a vacant industrial site. Council member Thorn noted the project would generate 17 jobs in total figures cited by staff and council discussion.

The resolution the council approved is a municipal letter of support that the county typically requests before considering a Class 6b application; final approval and the exact local tax treatment will be determined by Cook County.

Attribution: the presentation and figures were made by city economic development staff; the council’s vote recorded the motion as approved 9-0.