Palatine recommends tax incentive that could help bring new grocery store to town
Palatine village council members on Monday recommended that Cook County grant a property tax incentive to a portion of the Park Place Shopping Center as its owner moves forward with improvements and the possible addition of a new grocery store.
The incentive would help offset the more than $11 million in facade improvements planned at the shopping center near the southeast corner of Rand and Dundee roads.
According to village documents, Des Plaines-based Park Place Development LLC plans to purchase a portion of the center for $2.35 million, with the intention opening a Local Market grocery store.
The store would serve as the 62,900-square-foot anchor tenant for the shopping center.
The owners of Park Place own and operate six Shop & Save Market grocery stores in the area.
Palatine Community Development Director Mike Jacobs said the deal "is not a definite thing" yet.
The recent redevelopment agreement with the property owner, North American Real Estate Venture LLC, was contingent on the attraction of sales-tax generating businesses. The grocery store would fit the profile.
Jacobs said the village is not aware of where negotiations stand between North American Real Estate Venture and Park Place Development for the purchase.
"It's really more up in the air between (the two parties) if they can make the deal happen," he said.
The 7c tax incentive recommended at Monday's meeting would not include the portion of the center with the U-Haul Self Storage facility, the Goodwill space or the section north of Goodwill.
Under the incentive, the property included would be assessed at 10% of fair market value for the first three years, 15% for the fourth year and 20% for the fifth year.
Commercial properties normally are assessed at 25% of market value.
The Cook County Board will decide whether to grant the incentive.
According village documents, the village and other taxing bodies would receive approximately $1.7 million more in property tax revenue with the 7c incentive in place than they would without the incentive and the property vacant.