Council declares 1645 Birchwood blighted and approves Class 7A incentive for rehab project

The Des Plaines City Council voted April 20 to declare 1645 Birchwood Avenue a blighted area and to support a Cook County Class 7A real estate tax incentive for a prospective purchaser, Birchwood Venture LLC.

Director Rogers presented the staff report, saying the property — in an industrial area south of Birchwood Avenue — was vacated in early 2026 and that the applicant proposes more than $550,000 in improvements to repair and rehabilitate the building. “The applicant anticipates that, after acquisition they will employ 30 full time employees within 2 years in compliance with the City Council's policy for substantial rehabilitation,” Rogers said.

Rogers summarized the Class 7A structure and noted staff included an assessment prepared by Elliott and Associates identifying the property’s conditions. He told the council the incentive would reduce assessed value for qualifying properties under the county program — staff estimated the incentive would result in about $1,100,000 in tax savings for the property owner and roughly $275,000 in new tax revenue for taxing jurisdictions compared with the existing vacant condition over the referenced timeframe.

Alderman Walston supported the motion and said the council should help businesses improve and succeed. The resolution declaring the area blighted and the related resolution supporting the Class 7A incentive were both moved, seconded and approved by roll call.

Next steps: the applicant will proceed with acquisition and rehabilitation plans and staff will administer conditions tied to the Class 7A support.