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TO: Mayor Robert J. O'Connor
FROM: Bill Wiet, Chief Development Services Officer
DATE: April 21, 2017
SUBJECT:
To provide Nutrivo, a sports nutrition manufacturing facility at 1785 North Edgelawn, a property tax rebate of $99,000 to be paid over a ten year period. Also, The West Aurora School District has partnered to support this project with a property tax rebate of $299,000 from the District to be paid over the same ten year period. Rebated funds would only come from property taxes generated at the facility
PURPOSE:
Nutrivo, a sports nutrition manufacturing company, is considering options for expanding production. Nutrivo currently operates a facility in Aurora, as well as a facility in South Carolina. Nutrivo has requested public financial assistance for the prospective expansion of their facility in Aurora. The proposed project includes facility expansion of 92,000 square feet, as well as rehabilitation of the current facility and purchase of new machinery and equipment. Total project costs are $6,500,000
BACKGROUND:
Nutrivo has worked with the Illinois Department of Commerce and Economic Opportunity and has secured an Economic Development for a Growing Economy (EDGE) grant. EDGE provides tax credits as an investment incentive to companies considering expanding in another state. Nutrivo is also requesting a property tax abatement from the City of Aurora (20% of total tax assessment) and the local School District 131 (60% of total tax assessment). Invest Aurora has analyzed the current tax bill and estimates future tax assessment of approximately $1.10 per square foot. Based on this estimate, Invest Aurora recommends a property tax abatement of $396,000 over 10 years.
DISCUSSION:
The abatement is contingent upon meeting payroll projections of at least 15 additional jobs per year, with each position paying an average of $36,000 annually plus benefits. Payroll will be verified through annual reporting to the Department of Employment and Security....
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