Two major developments, expected to bring hundreds of jobs and millions of tax dollars to the area, were granted a tax incentive by the Franklin Park Board of Trustees on Tuesday.
The projects include Digital Realty’s transformation of the old Motorola Headquarters property at 9401 Grand Ave. into a digital data storage facility, and Ridge Development’s plans to build an industrial warehouse at 9100 Belmont Ave.
The incentive, approved unanimously for both developments as part of the board’s consent agenda, essentially cuts each project’s property taxes in half for 10 years, according to Director of Community Development John Schneider. Both sites were previously empty, Schneider said.
The tax incentive, titled Class 6B, allows qualifying properties to be assessed at 10 percent of market value for the first 10 years after the project is completed, according to the Cook County Assessor’s Office. In the 11th year, the amount increases to 15 percent, and in the 12th year it jumps to 20 percent. Industrial real estate is normally assessed at 25 percent of its market value.
Digital Realty’s $700 million project is anticipated to create 250 jobs with an average salary of $75,000 and generate about $25.5 million in total annual tax dollars during its first 10 years, Schneider said.
“This kind of a project helps diversify our town’s economy,” he said.
Mayor Barrett Pedersen said the development brings good jobs and workers who will spend money in the village, and added that it has the potential to drive development in the area.
Digital Realty, which already operates a Franklin Park property at 9333-9377 Grand Ave., chose the village for its proximity to O’Hare International Airport and its facility in downtown Chicago, and because it offers room for the company to expand, said Rafal Rak, director of asset management for the San Francisco-based company.
“Our facility is really the home of our new digital economy. It’s home to the cloud,” he said.
The data center will be at least 390,000 square feet, according to village documents. The property consists of 18.5 acres bordered by Grand Avenue to the North, Martens Street to the East, Edgington Street to the West and a neighboring property to the south, Schneider said.
Digital Realty is also paying $35 million to run new electric lines and building a transformer next to its new facility, according to Schneider.
The Ridge Development property will also generate employment and tax dollars locally. It is expected to create about 35 full-time jobs and about $6 million in taxes annually during its first 10 years, according to Schneider.
The estimated cost to build the 175,000-square-foot speculative facility is $17 million, village documents state. The property is about 10.5 acres, according to Schneider, and is bordered by Belmont Avenue, Elm Street and neighboring property lines.
Pedersen said that in addition to the new employment offerings, the project would create an entry point to Franklin Park. The facility will include a sign indicating entry to the village.
Ridge Development Vice President Kevin Mohoney said the company was drawn to Franklin Park for its proximity to O’Hare, Chicago and various land transportation options, as well as its workforce.
“There’s just incredible appetite for modern distribution space,” Mohoney said.
The village board Tuesday also rezoned a property at 3250 N. Elm St. for industrial use so it can be part of the Ridge Development project.
Schneider said overall the properties selected by Digital Realty and Ridge Development were zoned for the planned uses. He also said both developers intend to incorporate heavy landscaping to serve as a buffer for the facilities.
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Digital Realty and Ridge Development both hope to complete their projects in 2019. The next step in order for both developments to gain the incentive is for them to be approved by the assessor’s office.
Anna Bybee-Schier is a freelancer.