The Burr Ridge Board of Trustees voted on two measures, during its meeting Monday, intended to improve both industrial and some retail businesses in the village via economic incentives.
The retail businesses would have to be in the village’s downtown business district, which is along Burr Ridge Parkway. For three years the Village has collected a small tax from businesses there to fund improvements in that area. The other inducement is a tax abatement plan limited to businesses in the village’s industrial-zoned areas.
The industrial incentives, if awarded, would mean an offset of taxes for the industrial business and a rise in residential property taxes collected by the County to make up for that loss, though only temporarily and the industrial business would have to offer substantial benefit to the community.
Hannah Breakey, the Village’s special projects manager, said the local Economic Development Council would have to approve a Cook County Class 6B tax classification system, which is a tax abatement plan specific to industrial businesses. The businesses would get a heft temporary tax reduction, though homeowners would make up for the tax loss through a temporary property tax hike through the county.
The projects would require EDC approval and village board approval and they would have to offer new infrastructure, provide jobs or increase wages — in short, the business would have to add value to the community of “a substantial economic impact.” The county would then get final approval on any project.
Companies could apply only re-apply once after an initial tax abatement. In any case, Mayor Gary Grasso said he supports the move with reservations, not the least of which concern potential property tax hikes for residents.
“We don’t raise property taxes,” Grasso said of the Village Board. “This would be a Cook County property tax. I want that to be clear. I’m not a big fan of 6B. It needs to be very judiciously looked at in my opinion.”
Even so, he said it could be a good incentive, and the board approved the plan. The board next approved using funds from the downtown business district for distribution. After years of collecting taxes, the Village approved a framework for distributing those funds to businesses looking to improve their properties. Breakey also presented this item and though it’s limited only to village oversight, the projects would still face approval by both the EDC and the village board.
“The EDC’s recommendation may be to fund a project as presented, fund it with conditions, or not fund it at all,” Breakey said. She explained the Village Board would then be able to make the same choices. The funds could be used for professional service or infrastructure repairs or other improvements.
“All projects must demonstrate fiscal solvency and have all zoning approvals,” Breakey said.
Grasso liked the framework, though he asked to add language to the resolution that makes it clear no business can begin work on a project before final approval by the Village Board.
“There’s no basis to rely on anything on here until it’s approved by the Village Board,” Grasso said. He said he wanted to make sure the EDC’s approval doesn’t imply or suggest Village approval.
Jesse Wright is a freelance reporter for Pioneer Press.