The Lake Zurich Village Board approved the village’s first tax increment financing redevelopment agreement at the April 17 meeting, establishing it in the village’s industrial corridor and hoping to attract more jobs and additional tax revenue to the area.
A TIF district uses property taxes collected in a specific area to redevelop that area for the purpose of attracting businesses, tourism, visitors and the like. Now, a company is looking to take advantage of the TIF for its manufacturing business.
“JGS Lake Zurich West LLC is requesting TIF assistance related to the implementation of a new manufacturing line at 550 Enterprise Parkway,” said Trustee Jonathan Sprawka. “The company is considering this location for manufacturing equipment upgrades which would increase the overall investment in the community and create eight to 10 full-time positions.”
JGS Lake Zurich West LLC at 550 Enterprise Parkway is a business under Lake Zurich-based Geremarie Corporation, a medical tool manufacturing facility that has over two decades of history in the community, with sustained reinvestments in their building and operations.
“JGS Lake Zurich Wests’ total project costs for the new development … is no less than $8.5 million, including the cost of the land, site work, engineering and construction, permit fees, the installation of manufacturing line equipment and electric/gas utility connections,” Sprawka said. “The proposed TIF redevelopment proposal will help offset this significant investment cost with a rebate of $626,000 of future property taxes over several years.”
He said that offset is about 7.4% of the cost of the whole project.
Kyle Kordell, the deputy village clerk, fielded questions from the board and he said the move to approve the motion would be good for the town.
“I think this is a win-win for everyone,” he said, “It’s going to lead to more industry for Lake Zurich and more jobs in Lake Zurich.”
Later, in an email interview, Kordell told Pioneer Press this sort of redevelopment package offer is exactly the point of creating a TIF.
“This is an early win for Lake Zurich’s newly created industrial TIF district, exactly the sort of project this TIF was intended to support,” he said. “The Village is happy to throw our support behind Geremarie and Lake Zurich manufacturing.”
Kordell also pointed out that the tax investment to the project should net a benefit to the town overall.
“This unanimously-approved redevelopment agreement means more jobs in Lake Zurich, more manufacturing in Lake Zurich, more industrial square footage in Lake Zurich, and higher property values that benefit the schools, library, and other partner local governments that make Lake Zurich special,” he said.
Jesse Wright is a freelancer.
