Saturday, October 20, 2018 || By Michael Romain || @maywoodnews
Featured image: A worker welding at Matot, a family-owned manufacturing company in Bellwood. | Cook County Bureau of Economic Development
The Cook County Board of Commissioners recently approved requests for tax breaks from two Proviso Township businesses.
The board voted on Oct. 17 to approve eight total proposals submitted through the county’s Bureau of Economic Development, including one from National Cycle Inc., 2200 S. Maywood Drive in Maywood, and A-1 Tool Corporation — which has two locations, 1345 Armitage Ave. and 2117 15th Ave., both in Melrose Park.
National Cycle had presented their request to be granted a Class 6b Sustainable Emergency Relief tax incentive to the Maywood Board of Trustees in the summer.
In order to secure the incentive, businesses must prove that they’re in financial distress and the municipalities in which they’re located must approve a resolution in support of the business getting the incentive.
Cook County Commissioner Richard Boykin (1st) has supported the company’s request throughout the process.
In September, the Maywood Board of Trustees voted 5-2 in support of National Cycle landing the tax break, which could translate into around $1.4 million in property tax savings over 10 years.
National Cycle, which manufactures motorcycle windshields, had applied for the incentive after it was forced to stall a planned expansion of its Maywood plant because of volatile economic conditions, including rising prices.
National Cycle representatives said that the company paid $226,201 in property taxes in 2017. A Class 6b SER tax incentive will reduce the company’s tax bill by 60 percent, to $90,481, representatives added.
Trustee Kimyada Wellington and Melvin Lightford voted against the measure. Trustee Ron Rivers was not at the meeting.
Village Manager Willie Norfleet Jr. said that the tax break would mean that the village would be out of nearly $800,000 in property taxes over a decade and that the lost revenue could mean a higher tax bill for many of the village’s already overtaxed homeowners.
Village officials in support of granting National Cycle the tax relief said that the company’s more than 90 years in Maywood justified helping the company secure the incentive. They added that some of the money would be offset by new taxes that would be created by the company’s expansion.
As part of the revised development agreement between the village and National Cycle, the company must, among other requirements, close on the sale of village-owned property it’s seeking in order to complete its expansion by Oct. 31 and begin construction on the expansion on or before Sept. 18, 2021.
The expansion must be substantially completed by Sept. 18, 2023, or else the village could take steps to terminate the tax break. If the village wanted to terminate the incentive, officials would need to file a request with the county.
According to a statement released Oct. 17 by Cook County Board President Toni Preckwinkle, the tax break will help National Cycle retain an estimated 39 jobs.
In addition to National Cycle, A-1 Tool Corporation in Melrose Park, which manufactures, assembles, packages, warehouses and ships plastic injection molds, was granted Class 6b Sustainable Emergency Relief, as well.
According to the Preckwinkle, the tax break will help the company retain 81 jobs.
“The companies receiving these incentives have demonstrated their commitment to our communities and residents,” Preckwinkle said. “I’m pleased that we are able to use our tax incentive tools to either keep or expand businesses in Cook County.” VFP
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