Cal City OKs tax break for metal recycling company

2014-06-16T00:00:00Z Cal City OKs tax break for metal recycling companyGregory Tejeda Times Correspondent nwitimes.com
June 16, 2014 12:00 am  • 

CALUMET CITY | The City Council voted last week to recommend that Cook County grant a property tax break to A Pro Metal Recycling, which wants to take an abandoned site at 100 Riverside Drive and turn it into a plant for its metal recycling company.

Company officials say the site offers double the space as its plant in Bedford Park. They say the property taxes would be too high unless they can get a Class 8 Real Estate Tax Abatement.

The County Board grants such tax breaks — which could reduce the tax bill by more than half for a 12-year period — only in cases where local officials first give a recommendation.

A Pro Metal Recycling is a division of C&Y Global Inc.

In other business, city officials approved a tax-sharing payment with the developer who rehabilitated the River Oaks West shopping center a decade ago.

Aldermen voted for a $45,058.36 payment to KRC Calumet City 836, a division of Kimco Realty Corp.

Under an agreement negotiated a decade ago, city government shares 50 percent of its take of state sales and home rule sales taxes. Payments are made quarterly, and the latest payment covers the period from Jan. 1-March 31.

The city treasurer’s office calculated the payment based on financial figures provided by the Illinois Department of Revenue.

Under the terms of the agreement, the revenue-sharing deal is to last for 10 years. The final payment will be made later this year.

Officials say Calumet City paid an average of $140,000 per year during the decade the agreement was in place. City officials justify the loss of tax revenue by saying it encouraged improvements to the River Oaks West retail strip.

Kimco officials told city officials last year it did not come close to recouping the $11 million they spent in the early 2000s to revamp River Oaks West, saying the downturn in the economy in recent years created unforeseen complications.

Copyright 2014 nwitimes.com. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Follow The Times

Latest Local Offers

Featured Businesses

Poll

Loading…

Should the Indiana attorney general's office compel all Lake County municipalities to merge E-911 dispatch services?

View Results

Illinois Newsletters