There is currently a total of 77 active Class 6B incentives, 1 Class 7B for Tony’s Fresh Market at 200 S. Roselle Rd, and 1 Class 7C for Napleton Subaru at 180/200 W. Higgins Rd. Of these 79 active incentives, 60 are first-time incentive recipients. The remaining 19 are renewals (16) and SER (3) incentives, most of which are tied to redevelopment agreements. To date, the village’s incentive program has provided overall prosperous results. According to the information that staff has received from incentive recipients, the Village of Schaumburg has seen a total of $237,867,310 invested in the community since 2008 and over 3.1 million square feet of industrial/flex space occupied. The incentives have also helped retain 4,252 employees and stimulate incentive recipients to open 345 new positions in 2023. This amounts to a grand total of 4,597 jobs, which is an increase of 582 from last year (up from 4,015).
Of the 79 total active incentives, 41 are in compliance by having met their respective goals. The remaining 38 are still in progress, are vacant, or not in compliance with their committed employment and/or investment. The total number of incentives in compliance in 2023 is up by 10 compared to last year. In 2022, only 31 of 75 active incentives complied with their goals. However, it is important to note that after several attempts of contact, employment and capital investment data for 3 incentive recipients were not fully updated for 2023. As such, the reported numbers for BEM CNC, Sonic Trans, and Easy and Quick Trans are based on 2023 first half data. The department saw a 32.2% increase in compliance from last year to this year. Additionally, there were 7 new incentives granted this year.
There are 22 incentive recipients listed in Tables 4 and 5 who have not met the employment or capital improvements. The 16 businesses in Table 4 are in concern for not meeting their committed employment numbers but are at or above their committed amounts for capital improvements. The 6 business in Table 5 are in concern for not meeting their committed capital improvement amounts but are above the committed employment numbers. Considering these businesses are meeting at least some of their committed amounts, staff recommends not repealing the incentives now.
The business listed in Table 6 are not meeting either the employment and capital investment commitments. There were 2 recipients that were not meeting any of their committed numbers: Lucid Star, LLC at 125 Commerce Lane and Brooklyn Imports, Inc. at 851 E. State Parkway. With Lucid Star, LLC, this is a newer incentive approved in 2021 and staff feels their deficits do not warrant immediate action and will continue to monitor their status. However, staff recommends the Village Board consider repealing the Cook County 6B renewal incentive for 851 E. State Parkway.
There are 7 properties listed in Table 7 that are vacant. The 500 Commerce property is under construction and is anticipated to be filled early 2024 by Cloos Robotics. 895 American, 1200 Tower, and 1211 Tower properties are still vacant and being actively marketed.
A large emphasis this year was once again placed on getting data for civic involvement from incentive recipients. Of the 79 total active incentives, 54 recipients reported some degree of civic engagement in 2023. Specific examples include SBA and GCAMP memberships as well as work with the school district foundations, Schaumburg Township, local athletic teams, and Feed My Starving Children. Table 8 shows which incentive recipients are specifically members or sponsors of the SBA and GCAMP. The table also records which recipients have been involved with Harper College, School Districts 54/211, the Al Larson Prairie Center for the Arts, TMA, and any other related involvement. Staff is working with the businesses and civic agencies to get more community participation.
In 2024, staff plans to continue collecting updates from 6B/7B recipients on a biannual basis. This process has helped staff monitor active incentives more closely and better assess which properties may require more immediate attention. For the incentive recipients that are not in compliance, staff will continue to monitor and follow up with scheduling business retention visits to see if action should be taken to recommend removing the incentives including repealing the Cook County 6B renewal incentive.