A Franklin Park commission voted to recommend renewing a property tax cut for land to be used by UPS.
The Franklin Park Economic Development Commission recommended 6B property status for a seven-acre site at 11201 Irving Park Road owned by CenterPoint properties the morning of April 23.
A property that gets a 6B rating is assessed at 10 percent of its market value during its first ten years, 15 percent in the 11th year and 20 percent in its 12th year. Normally, industrial properties are assessed at 25 percent of their value.
A 6B classification aims to encourage industrial businesses to locate or remain in Cook County. While bringing in industry means jobs, the tax cut also means less revenue for the municipality and county.
UPS has agreed to a five-year lease so it can open a ground freight division. The Economic Development Commission agreed to recommend 6B approval of the property under the condition that 6B status will be put on hold if UPS leaves after five years. If that happens, the owner CenterPoint would be required to bring any new tenants in front of the commission for approval.
“The [Cook County] Assessor’s office said they would do this when there is a change of ownership,” said John Schneider, economic development director for the village of Franklin Park.
The location at 11201 Irving Park Road will be used to transfer pallets of freight that are less than a truckload, according to Robert Harder, who is in charge of corporate real estate for UPS. The new location has no connection with the facility that UPS has operated for decades on 25th Avenue, which does small — under 150 pound — package deliveries.
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UPS plans to move 55 workers from other UPS facilities, plus add 22 new jobs at the new location.
The property was previously leased by Averitt Express, which moved out to consolidate its operations elsewhere in 2013. The building was constructed in 2005, when it was also approved for 6B status, and purchased by Centerpoint in 2010.
UPS plans to move in June 1, Harder said.
The recommendation of the EDC next goes to the Franklin Park Village Board, possibly as soon as their next meeting on May 4. If approved, it then goes to the county government. While trustees and the county actually make the decision on whether to approve 6B status, both rely heavily on the recommendation of the EDC.