Economic Development Committee

1 APPROVED 2 MINUTES OF THE NORTHBROOK ECONOMIC DEVELOPMENT COMMISSION - SPECIAL MEETING 3 Village Hall Terrace Room 4 August 5, 2015 5 6 Members Present: Chairman James Kahan, Jessica Donato, Edwin Feld, Tensley Garris, Judy Hughes, 7 Kate Hall, Dr. Larry Hewitt, Harley Korman, Dr. Mike Riggle, Karen Roloff, Richard Rushkewicz, Vicki 8 Tarver, Joel Taub, Dr. Brian Wegley. 9 Staff Present: David Schoon 10 Guests: Jean Streeter 11 Recorder: S. Anetsberger 12 Review of Minutes: 13 On a motion made and seconded, the minutes from the July 8, 2015 meeting were approved as 14 submitted. 15 Public Comment-Hear from the Audience - None 16 Discussion of a Request by Bell Flavors and Fragrances for Village Support of the Cook County Class 6b 17 Classification for New Construction at 3200 Arnold Lane 18 David Schoon, Village Staff Liaison, provided information on Bell Flavors and Fragrances' request for a 19 Class 6b for a building project located in Sky Harbor. Bell develops flavors and fragrances for a variety of 20 industries. Bell's world corporate headquarters are located in Northbrook, having called Northbrook 21 their home for decades. Bell employs approximately 180 employees in Northbrook. They operate 22 another facility in Middletown, New York have facilities throughout the world for a total workforce of 23 approximately 470. Bell is looking at an expansion at this site and is also looking at the option to expand 24 at an existing facility in New York as they have reached building capacity. Their campus consists of two 25 buildings, and they also lease space at other nearby buildings. 26 They are seeking two small additions to the building located at 3200 Arnold for 15,000 square feet and 27 interior work of 5,000 square feet. It will add to their dry blend area operation and fragrance innovation 28 center. Improvements are expected to cost approximately $5 million. Their workforce is expected to 29 increase by 25-30 new employees with annual salaries ranging from $40,000 to $80,000. Payroll is 30 expected to increase $2,000,000 on top of existing annual payroll of $13,000,000. 31 The Class 6b classification reduces the assessment rate over a period of 12 years. The reduced rate is 32 10% for the first ten years and then gradually increases back to 25% at year 13. Class 6b designation 33 requires that the building has to be used for industrial purposes or research and development. There 34 are three categories under which 6b can be requested. The 3200 Arnold Class 6b is requested for new 35 construction. The reduced assessments would apply to the value added as a result of the new  EDC Meeting Minutes – August 5, 2015 1 construction. The property had a 6b on it designated under the criteria of abandonment when Bell 2 purchased the building in 2011. This will expire in 2018. 3 Schoon provided Village 6b criteria material in the packets to all Commissioners prior to this meeting. 4 Schoon asked that the Commission discuss if the request for 6b meets the Cook County and Village 5 criteria. At this time Schoon stated he did not know how the Assessor will determine what the market 6 value is but that the appropriate assessment rate would be applied. The Village Board held their 7 preliminary review and was generally open to the request but is seeking feedback. 8 Chairman Kahan stated that if in denying the 6b incentive, would the business re-evaluate their 9 continued presence in this area and that could be viewed as a risk. Commissioner Hewitt stated this 10 request for 6b was similar to the request Nestle made for 6b approximately 3 years back and that 11 request was approved. Commissioner Hewitt stated that granting Nestle the 6b was a substantial 12 benefit and was an improvement that lead to a positive outcome. Commissioner Feld reported positive 13 feedback and enthusiasm from his Business Manager and Superintendent . Commissioner Korman feels 14 6b would be a win by adding additional tax monies. Commissioner Hall questioned if Class 6b status 15 would transfer if the tenant vacated the premises. Schoon stated that the Village policy now requires 16 with a 6b an agreement with the Village and the property owner and is tied to the particular tenant 17 occupying the building. Commissioner Garris made a motion to recommend approval of Bell Flavors 18 request for Class 6b because it fits with the criteria and is a benefit to all involved. The motion was 19 seconded and passed by unanimous voice vote. 20 Member Roloff added that this kind of discussion on this type of issue is an example of the role of this 21 Committee. She stated that Class 6b status is economic development and should be heard by this 22 Commission. 23 Old Business 24 None 25 New Business 26 The Chamber of Commerce is taking applications for Leadership Northbrook. Commissioner Garris will 27 forward the program particulars to Liaison Schoon. Liaison Schoon will distribute the information to 28 Commissioners. Ms. Garris can be contacted at the Chamber with any questions. 29 Adjourn 30 On motion made and seconded, the meeting was adjourned at 8:05 a.m. The next meeting is scheduled 31 for Wednesday, October 14, 2015 at 7:30 a.m. 32 Respectfully Submitted - Sue Anetsberger