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Des Plaines council backs Class 6B tax break for Midstates Recycling expansion
Summary
The council voted to support a Cook County Class 6B tax incentive for Midstates Recycling’s proposed 15,000 sq ft expansion at 1777 Bussey Highway; staff said the $4.38 million project would add about five full-time jobs to 22 existing employees and requires the incentive to proceed.
The Des Plaines City Council voted April 20 to support a Cook County Class 6B real estate tax incentive for Midstates Recycling Inc.’s planned expansion at 1777 Bussey Highway.
Director Rogers told the council the project proposes a 15,000-square-foot addition to an existing metal processing facility on the adjacent vacant lot, with an estimated total investment of approximately $4,380,000 and a projected construction start in May 2026 and completion in May 2027. “The applicant does currently have 22 full time employees and they anticipate increasing their employment by 5 additional employees if this project proceeds,” Rogers said.
Rogers explained the Class 6B mechanism: under the Cook County program the assessed value for qualifying new construction or substantial rehabilitation is reduced from 25% to 10% for a 10-year period, with phased increases after year 10. Staff told the council the designation would produce roughly $1,100,000 in tax savings to the property owner while increasing tax revenues to taxing jurisdictions by about $835,000 compared with the current vacant condition.
Alderman Noskerka asked for clarification about the city’s policy on minimum employment for incentive approvals; Rogers said the city’s policy does not require a minimum employment floor for building additions and that many additions do not increase headcount due to operational needs. “The city council did not see fit to include unemployment minimum when that policy was drafted,” he explained.
Chairman Moylan moved approval of the resolution consenting to the county classification; the motion was seconded and passed by roll call. The council’s consent allows the applicant to file a formal application with Cook County seeking the 6B designation, which staff said is required for the project to proceed.
Next steps: the applicant will file the Cook County application and, if the county approves the 6B classification, the development would proceed under the proposed timeline and the city will monitor employment and construction milestones.
