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PROPOSED RESOLUTION
MICHIGAN CERMAK INDIANA LLC 7B PROPERTY TAX INCENTIVE REQUEST
WHEREAS, the Cook County Bureau of Economic Development received and reviewed a Real Property Assessment Classification 7b application containing the following information:
Applicant: Michigan Cermak Indiana LLC
Address: 2215 South Michigan Avenue, Chicago, Illinois, 60616
Municipality or Unincorporated Township: Chicago
Cook County District: 2
Permanent Index Number: 17-27-102-002-0000
Municipal Resolution Number: City of Chicago, Ordinance 2016-3936 passed June 22, 2016
Number of months property vacant/abandoned: Over 24 months at time of application to CCBED
Special circumstances justification requested: Yes, per the Assessor’s office
Estimated Number of jobs created by this project: 350 FTE
Estimated Number of jobs retained at this location: 0 full-time, 0 part-time
Estimated Number of employees in Cook County: 0 full-time, 0 part-time
Estimated Number of construction jobs: 790
Proposed use of property: Commercial-hotel, restaurant/retail
Living Wage Ordinance Compliance Affidavit Provided: N/A
WHEREAS, the Cook County Board of Commissioners has adopted a Real Property Assessment Classification 7b that provides an applicant a reduction in the assessment level for an abandoned commercial facility; and
WHEREAS, the Cook County Classification System for Assessment defines abandoned property as buildings and other structures that, after having been vacant and unused for more than 24 continuous months, there has been no purchase for value by a purchaser and the property is in need of substantial rehabilitation; and
WHEREAS, in the instance where the property does not meet the definition of abandoned property, the municipality or the Board of Commissioners, may determine that special circumstances may exist that justify finding that the property is abandoned for purpose of Class 7b; and
WHEREAS, in the case of abandonment of over 24 months and no purchase for value by a disinterested buyer, the County may determine that special circumstances justify finding the property as being deemed abandoned; and
WHEREAS, Class 7b requires a resolution by the County Board validating the property as abandoned for the purpose of Class 7b; and
WHEREAS, the municipality states the Class 7b is necessary for development to occur on this specific real estate. The municipal resolution cites the qualifications of this property to meet the definition of abandoned with special circumstances; and
WHEREAS, the Cook County Economic Development Advisory Committee (EDAC) states by Resolution No. 9-R-2016 that the project would not be economically feasible and would not go forward without the Class 7b property tax incentive; and
WHEREAS, commercial real estate is normally assessed at 25% of its market value, qualifying commercial real estate eligible for the Class 7b can receive a significant reduction in the level of assessment from the date that new construction or rehabilitation has been completed, or in the case of abandoned property from the date of substantial re-occupancy. Properties receiving Class 7b will be assessed at 10% of the market value for 10 years, 15% for the 11th year and 20% in the 12th year; and
NOW, THEREFORE, BE IT RESOLVED, by the President and Board of Commissioners of the County of Cook, that the President and Board of Commissioners validate the above-captioned property is deemed abandoned with special circumstances under the Class 7b; and
BE IT FURTHER RESOLVED, that the County Clerk is hereby authorized and directed to forward a certified copy of this resolution to the Office of the Cook County Assessor.
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