On Tuesday, Chicago's Community Development Commission approved the use of $1.12 million in tax-increment financing funds to subsidize renovations to the new offices of JMC Steel Group on the 26th floor of 227 W. Monroe St., the former AT&T Corporate Center. The project has to be approved by the City Council before it is finalized.
JMC Steel Group, a maker of tubular products, says it needs the assistance to offset build out costs of $4.7 million, according to a report presented to the commission on Tuesday.The company plans to� employ about 100 people at its new headquarters within four years. About half of those workers would relocated from Ohio. The other half would move from the company's Atlas Tube facility in South Deering, according to the report.
The company also agreed to retain a combined 286 workers from its Atlas Tube and Wheatland Tube facilities.
The company didn't return calls seeking comment.
In January, the state doled out a package worth $2 million in corporate income tax credits over 10 years for JMC Steel Group to consolidate its regional offices into a national headquarters in the city.
As part of that deal, the company already had agreed to retain 50 workers from its Atlas Tube facility and move them to the new national headquarters in the Loop.
JMC Steel Group pledged then to invest $10.2 million in the state, including the purchase of furniture and fixtures, lease improvements and lease payments over 10 years. That investment includes the $4.7 million in buildout costs.
Ald. Robert Fioretti, 2nd, said the company has been in conversations with him since the end of last year.
Though he didn't know how much assistance the company received from the state, Fioretti said the Illinois "has been losing the struggle to keep companies here," which is why the city also needs to provide incentives.
"I am a firm believer all companies need incentives from the city," he said, adding that if the TIF funds are approved, JMC Steel Group will receive $224,000 per year over five years.
This proposal cancels a 2003 TIF agreement between the city and Wheatland Tube, a JMC's subsidiary,� to redevelop their facility at 4435 S. Western and maintain 236 workers there over 10 years. The city awarded then $1.9 million in TIF funds over 10 years.
Though Wheatland redeveloped the site, it could only keep about two-thirds of the jobs promised. The company received $590,000 in TIF funds for the four years it kept the number of jobs required. If the new project is approved by City Council, the company will keep that money in addition to the new funds.
cpa chicago cpa chicago il cpa firm chicago cpa firms chicago cpa firms in chicago
No comments:
Post a Comment