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Board OKs tax abatements for two companies looking to build in area

Published: Friday, Dec. 13, 2013 5:30 a.m. CDT

MORRIS – The Grundy County Board passed resolutions this week approving tax abatements for two potential companies looking to build in Grundy County.

NFI Industries/NDC Systems is considering building a new facility in the Minooka area and Utility Concrete Products is considering adding on to its existing facility in Morris.

“An announcement has not been made on either of them. They are still in their due diligence phase,” said Nancy Norton Ammer, chief executive officer of Grundy Economic Development Council. “They are still evaluating if this is the best location for them.”

Because negotiations are in progress, Ammer was unable to release cost estimates for the potential projects.

“What we have done is get everything ready and approved so if we’re chosen, then we’re ready to go,” Ammer said.

Both potential projects would fall within the first Grundy County Economic Development Project Area, or EDPA, so the county was able to offer abatements to the companies.

The abatement act as incentives to encourage the companies to build within Grundy County. The abatements – in conjunction with other tools – also help lessen the impact of the county’s machinery and equipment tax, which taxes machinery as real property. The state’s other 101 counties classify machinery as personal property, which is not taxed in Illinois.

“In Grundy, we have a standard abatement offered for companies,” Grundy County Chairman Ron Severson said after Tuesday’s county board meeting. “We are cognizant of their need so we try to work with them.”

Grundy County offers a three-year, pre-negotiated tax abatement program for qualifying companies. The abatement is offered to companies starting a new project or expanding their existing business.

Eligible companies can receive an abatement on their property taxes of up to 75 percent their first year, 50 percent their second year and 25 percent their third year.

To qualify for an abatement, the company must submit an application and meet a long list of criteria. Requirements for the tax abatement program include hiring at least 50 percent of workers from the taxing district and having a development worth at least $500,000.

Both Utility Concrete and NFI Industries qualified for these standard tax abatements.

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