IL Operator Seeks to Retain Tax Breaks
Lechner & Sons, Mount Prospect, IL, currently benefits from a Cook County tax incentive, which has kept its property tax bill at $1.30 per square foot for the past 12 years. That incentive, the Class 6b tax incentive, is up for renewal. Without it, Lechner’s tax bill would jump to $3.20 per square foot.
Fortunately for Lechner, town officials are asking the county to renew the tax break to help keep the company and its 88 jobs in the community. They recently approved a recommendation to the county that could save the company thousands on property taxes through 2027, according to a local news report.
The 6b incentive addresses the disparity in commercial property assessment between Cook County and neighboring DuPage and Lake counties that could encourage a business to relocate in order to control costs. Property taxes for similar properties in the latter two counties range from a $1 to $1.50 per square foot.
Under the incentive program that Lechner receives, the assessment level for qualified properties is reduced from 25% to 10% for the first 10 years, 15% for year 11, and 20% for year 12. After year 12, the assessment level returns to the original 25% for the property.
With annual revenue of $9 million, Lechner and Sons relocated from the Windy City to Mt. Prospect in 2003. Located 22 miles northwest of downtown Chicago, the owners enjoy the amenities of the town. "The Randhurst development gives us a lot of places to eat, a lot of our consultants stay in the hotels, and we see Mount Prospect getting better each year,” said company owner Brian Lechner. “We are growing at about 12% a year, so we will add about six to 10 people to the local economy in the year going forward and we're hoping every year."
Mt. Prospect Trustee Paul Hoefert said without such incentives, properties in Cook County would struggle to compete with those in the “collar counties.” “I think it's important that you want to stay here,” said Trustee Richard Rogers. "You're doing a great job. You also have 88 employees, which eat lunch here, spend their money here, pay their taxes here. This is a good thing for the village." Click here to learn more.