Plainfield OKs 5-year tax abatement plan
By Madhu Mayer Correspondent December 19, 2012 10:48PM
Updated: January 21, 2013 3:36PM
In exchange for a new state-of-the-art recycling center that will bring much-needed jobs to the community, the Plainfield Village Board this week agreed to a five-year property tax abatement for improvements to the old Fox Valley Press building.
Village planner Michael Garrigan said staff has been working with Kuusakoski US LLC (Vintage Tech) on a major expansion of their recycling facility. The company is operating a business out of the old ball glass factory on Route 59 and 143rd Street, in addition to a facility in Romeoville.
“The applicant is currently proposing to purchase the vacant Fox Valley Press building on 135th Street and Route 30 and convert this into a new state-of-the-art recycling facility,” he said.
Garrigan told the village board Monday that the applicant is planning to invest approximately $5.75 million into the new Plainfield facility, which would create an additional 25 jobs. Right now, 50 people are employed at the building on 143rd Street.
“Over the five-year tax abatement, Kuusakoski is proposing to create additional jobs above and beyond the 25 that have been identified for the first two years,” Garrigan said. “Potentially, 84 new jobs could be created as part of this expansion into the Fox Valley Press building.”
Since the vacant building is a fairly large structure, Garrigan said the prospect of finding a print publisher is limited. But the size and configuration of this building provides Kuusakoski the opportunity to create “one of the most modern recycling facilities in the world,” he added.
The building last served as The Herald-News main office until December 2011.
Trustee Garrett Peck was enthusiastic about the idea, especially bringing new jobs to the community.
“This project is important to the Village of Plainfield,” said Peck.
Garrigan said based on the $5.75 million new investment, the total tax bill for the site would be around $273,671, with the village portion approximately at $14,477.
“The proposed 50 percent tax abatement would generate a tax bill of $183,149 per year or $8,239 to the Village of Plainfield,” he said. “Over the five years of the agreement, the village would generate $41,195 in new property tax revenue.”
The proposed tax abatement for Kuusakoski would be a total of $452,612.
“Over the past several years,” Garrigan said, “the village, along with the county and school districts, have partnered in a number of property tax abatements, which have allowed international companies such as Diageo and Logoplaste to expand their Plainfield facilities.”
The yearly abatement will generate around $10,259 in new property tax revenue for Will County and an estimated $101,050 for Plainfield Community Consolidated School District 202.