In November of 2023, the Transportation Department received notification from Pilot Pete’s that the Cook County Assessor’s Office reduced their property tax liability due to a change in their assessed valuation.

Per the license agreement with Pilot Pete’s, an escrow account was formally created to collect and manage rent payments owed to the village.  In addition to Pilot Pete’s’ monthly rent payments, staff have collected fees equal to 1/12^th of Pilot Pete’s’ property tax liability to cover real estate property taxes owed by the restaurant. The intent of that arrangement was to assist the restaurant payment of property taxes.

Subsequent to the Assessor’s determination to reduce Pilot Pete’s’ property taxes, property tax fees that were charged to Pilot Pete’s were also reduced due to the excess tax escrow balance; those fees defaulted to $100 per month.  Staff determined that while the new monthly payment would be less than 1/12^th of the reduced property tax bill, the balance in the tax escrow account would be sufficient to cover the difference.

From time-to-time Pilot Pete's has requested additional time to fulfill its obligations to the village. The village has supported Pilot Pete's through these times and even granted rent relief through the COVID-19 Pandemic. The escrow account continues the village's support while agreement provisions allow the village to draw on the escrow should Pilot Pete's obligations remain in arrears—whether they be tax liability or outstanding rent payments.

In cooperation with the owner of Pilot Pete’s, staff developed an amendment to the License Agreement that would formalize a new arrangement between the village and Pilot Pete’s.  Beginning in January, the license agreement will be amended to dedicate a new real estate property tax escrow account for the sole purpose of covering future property tax bills.  The escrow account for rent payments will continue to operate, though separately from the tax escrow account.  Pilot Pete’s will then begin depositing tax escrow payments at the monthly amount of $100.  Any difference between the annual sum of those monthly payments and the property taxes owed by Pilot Pete’s would be covered by excess funds in the escrow account until it reaches a balance of two years’ worth of property taxes.  After that occurs, the monthly payments would be readjusted the following year to 1/12th of the projected tax liability owed by Pilot Pete’s.  This ensures that the village can continue to support Pilot Pete’s with timely tax payments while only charging the restaurant $100 per month for the next several years.