The Cook County Class 6b property tax incentive is designed to stimulate industrial development by offering significant tax reductions to qualifying properties. This program aims to attract new industries, encourage the expansion and retention of existing ones, and boost employment opportunities within the county.
Key Features of the Class 6b Incentive:
Reduced Assessment Levels: Under the Class 6b classification, industrial properties are assessed at 10% of their market value for the first 10 years, 15% in the 11th year, and 20% in the 12th year. Without this incentive, such properties would typically be assessed at 25% of their market value.
- Eligibility Criteria: To qualify, properties must be primarily used for industrial purposes, such as manufacturing, warehousing, or distribution. Additionally, the incentive applies to:
- New Construction: Development of new industrial facilities.
- Substantial Rehabilitation: Significant renovation of existing industrial structures.
- Reutilization of Abandoned Buildings: Re-occupancy of industrial properties that have been vacant for a period, typically at least 24 consecutive months.
Application Process:
Prospective applicants must submit a Class 6b Eligibility Application to the Cook County Assessor’s Office. A crucial component of the application is obtaining a resolution or ordinance from the municipality where the property is located, expressing support and consent for the Class 6b application. This municipal backing is essential for the approval of the incentive.
Christian Arai’s Expertise with the 6b Incentive:
In a recent transaction, Christian Arai, Senior Director at CRER, represented The Common Market, a national food distribution chain based in Philadelphia, in acquiring an 84,461 SF food production and refrigerated warehouse located at 7424 South Lockwood Avenue in Bedford Park, IL. This property is situated within an Enterprise Zone, making it potentially eligible for the Cook County 6b Tax Incentive. Christian’s adept navigation of the property’s eligibility for this incentive played a pivotal role in the successful acquisition, ensuring that The Common Market could capitalize on the substantial tax benefits associated with the 6b classification.
Benefits of the 6b Incentive:
The primary advantage of the Class 6b incentive is the significant reduction in property tax liability, which can lead to substantial cost savings for industrial businesses. These savings can be reinvested into the business, facilitating further growth, expansion, and job creation. Moreover, by lowering the operational costs associated with property taxes, the incentive makes Cook County a more attractive location for industrial enterprises.
Christian Arai: Guiding Clients Through the 6b Incentive Process
With his extensive experience in commercial real estate and a deep understanding of local tax incentives, Christian Arai is well-equipped to assist both buyers and sellers in navigating the complexities of the Class 6b application process. His expertise ensures that clients can fully leverage available tax incentives, optimizing the financial viability of their industrial projects.
For businesses considering industrial development or expansion in Cook County, understanding and utilizing the Class 6b tax incentive can be a game-changer. Engaging professionals like Christian, who possess both the knowledge and experience with these incentives, can provide invaluable guidance, ensuring that businesses maximize their potential benefits and contribute to the county’s economic growth.
