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Council backs redevelopment plan and sales-tax rebate to prepare East Devon site for Costco business center
Summary
The Des Plaines City Council voted to declare a parcel blighted and approved local support and a sales-tax rebate agreement to enable a proposed Costco Business Center at 2224 East Devon Ave, while also authorizing a site-management agreement for partial lake infill and construction access.
The Des Plaines City Council on March 16 approved a package of measures designed to clear, prepare and rebate a portion of future sales taxes so developers can ready a 14‑acre site at 2224 East Devon Avenue for a proposed Costco Business Center.
Developers and their tax counsel, speaking to the council, said the project would require more than $30 million in site preparation and infrastructure, including partial infill of a detention pond and demolition to create a buildable pad. "By utilizing a portion of new tax revenue, revenue that does not exist today, we can bring a national anchor like Costco to Des Plaines," developer Matt Ruh said during the presentation. He asked the council for a blight declaration, local support for a Cook County Class 7B real‑estate incentive and a sales‑tax rebate to offset land‑development costs.
Why it matters: The council approved a blight declaration for the parcel and supported a Class 7B incentive that would reduce assessed value per the county program’s 12‑year structure, with the developer saying the buyer will employ at least 100 full‑time employees within three years. The sales‑tax rebate agreement the council approved would share a portion of the city's municipal sales taxes with the developer for a limited period (the draft projects a net present value of about $7.84 million and a maximum payout in the agreement not to exceed about $9.75 million, with a phased share that favors the developer in early years).
Council members repeatedly described the package as a tool to convert underused office park land into active commercial property. "This is sales tax that we would not be collecting," Alderman Merlin said, noting the site is effectively vacant and that new retail would generate incremental revenue.
Environmental and operations details: The site‑management agreement authorizes temporary connection of pumps, stockpiling of clean fill, and other controls for infilling part of Peterson Lake. Staff said the dewatering plan would retain a minimum water level to protect aquatic life; the developer will furnish a $300,000 bond and insurance and follow emergency procedures to disconnect pumps after major rain events.
What passed: The council approved the blight declaration (resolution R‑64‑26), local support for the Class 7B incentive (R‑65‑26), the sales‑tax rebate agreement (R‑66‑26) and the site‑management agreement (R‑67‑26). Supporters said the measures are intended to make the site economically viable for an anchor tenant and to catalyze broader redevelopment of the O’Hare Lake office park.
What’s next: With local approvals in hand, the developer will continue coordination with Cook County and finalize agreements and construction plans; the council’s actions provide local support but do not themselves authorize construction or guarantee the tenant.
Quotes used in this article are attributed to speakers who appeared in the council record: Matt Ruh (developer), Director Rogers (city staff) and Alderman Merlin.
