Chicago Suburb to Incentivize Logistics Property Co. Project

Schaumburg is gearing up to clear the way for another industrial expansion, proposing a tax incentive district to make it happen.

Village officials will consider plans to create a Tax Increment Financing district to help redevelop a pocket of residential land into industrial use, the Daily Herald reported.

The 70-acre site, home to 19 unincorporated houses on Long Avenue, sits between Wintrust Field and Experior Logistics’ new trucking headquarters on the southwest edge of the suburb.

Chicago-based Logistics Property Company plans two speculative industrial buildings spanning 436,500 square feet on the site.

The developer has all the homes under contract and expects to close on the purchases early next year. Schaumburg would annex the land and establish the proposed TIF district — its fourth — to fund infrastructure tied to the redevelopment.

By law, a TIF district diverts future property tax revenue growth for up to 23 years to finance eligible costs within the zone. That means taxing bodies like the Schaumburg Park District and local school districts would forgo additional revenue during that period. The proposed district could generate about $111 million in eligible funding, with the area’s taxable value projected to jump from $2.8 million to $53.5 million.

According to Schaumburg Economic Development Director Matt Frank, Logistics Property told the village the project wouldn’t pencil out without the incentive.

The site’s inclusion of Wintrust Field and the Schaumburg Metra station’s north parking lot is intended to allow potential upgrades over the life of the district, he added.

The plan already won support from a joint review board that includes local schools and libraries.

The proposal would appear to be part of Schaumburg’s ongoing effort to reposition older residential and commercial pockets into logistics and industrial hubs — a trend fueled by surging demand for warehouse space near O’Hare and major interstates. The village board could vote to approve the new TIF as soon as Dec. 9.

— Eric Weilbacher