By : Subuk Hasnain
Mon, 11/04/2013 - 3:57pm
The City Council Committee on Economic, Capital and Technology Development on Monday approved the extension of a property tax break for Independent Mechanical Industries that could allow the company to save over $1 million in real estate taxes over a 12-year period at their current location in the Knox Industrial Corridor in Portage Park.
According to the Independent Mechanical Industries website, the company specializes in “the installation of mechanical equipment, power & process piping and mechanical service maintenance for central heat & cooling plants, water & waste water treatment plants, pumping stations, institutional, municipal, commercial and industrial facilities.” Its clients include the City of Chicago, Abbott Laboratories and General Mills.
John Reynolds, co-owner of Independent Mechanical Industries, told the committee that the tax savings would help his company keep up with the changing “technology of welding equipment” and develop its “design department, which is essential to the fabrication of piping, mechanical assemblies and sub-assemblies.”
The legislation’s sponsor, Alderman John Arena (45th), spoke in favor of the resolution during Monday’s meeting. According to Arena, “The company has previously reinvested” tax savings, allowing for a “steady growth in their sales during the recession.”
The Class 6(b) tax incentive is designed to support industrial development in Cook County by aiding in the establishment of new industrial facilities and the reutilization and renovation of older structures.
During the extended term of the tax incentive, Independent Mechanical is expected to pay $894,993 in real estate taxes on its property at 4227 N. Knox Ave. The company’s overall savings will be $1,186,711 during that period. Under the original term of the tax break, the company was only expected to save $740,499 on their property tax bills.
According to Denise Rowman from the Chicago Department of Housing and Economic Development, the public benefits include the “continued occupancy of an industrial property in the Knox Industrial Corridor and the retention of Independent Mechanical Industries as a business in the city of Chicago,” and the hiring of 4 new full-time office workers and 30 new union contractors. Currently, Independent Mechanical has 23 full-time office workers and 100 union contractors.
The resolution will go before the full City Council on Nov. 13.
This article was originally published on the Daily Whale website in 2013.