By Maureen Vander Sanden
Correspondent
The Union Grove Village Board approved a developers agreement this week with the fast-growing Custom Truck & Equipment (CTE), which one official said is a “win-win” for both parties.
Village Attorney Timothy Pruitt presented details of the developers’ agreement as well as the Tax Increment Project Revenue Bond that goes alongside it during Monday’s Village Board meeting.
Under the agreement, the village will reimburse the company 80 percent of its property taxes for the next seven years, as long as the company meets its guaranteed minimum assessed value of $3.4 million.
Pruitt explained that the 80/20 percent split appropriation is “typically more” than what the village will share, however the more aggressive split reflects the upcoming expiration of Tax Incremental District No. 3, where the company’s large-scale expansion is located.
“This (project) is coming in later in the TID’s life, so we agreed to make larger payments until the remainder of the TIF (tax incremental financing),” Pruitt explained.
TID No. 3, which was opened in 2000 at the west end of town, expires in 2023. The company will begin receiving payments back from its paid property taxes in 2018, according to the attorney.
For its end of the bargain, CTE in part agrees it will produce a minimum assessed value of $3.4 million, create 30 full-time positions with hourly wages starting at $20 as well as retain its current 35 full-time employees.
Initially, the truck sales, service and rental company headquartered in Kansas City, planned a $1 million expansion at its 1700 Leider Drive location.
However, due to rapidly growing demand for its services in the Midwest, CTE’s expansion project increased to a $3.9 million project with completion eyed for late spring.
The agreement is similar to the one that the village made with American Roller Co. in 2014, according to Village President Michael Aimone.
Under that agreement, the village expanded TID 3 to include the development site for a 52,000-square-foot manufacturing plant – a $3.6 million project at 1440 13th Ave.
Additionally, American Roller pledged to move its 27 employees from its former Dover plant to Union Grove, and create 20 more full-time jobs by 2019.
Officials expected the expansion to create $800,000 annually in new property taxes over the remaining life of TID 3.
The village is also splitting the cost of its property taxes. The agreement has panned out well so far, according to Aimone.
“It’s going as we anticipated it would,” he said. “American Roller has provided jobs and growth to the community as a result of the company choosing Union Grove for its expansion project.”
He anticipates the same success with CTE.
“With CTE’s commitment to the community and expansion and increase in jobs, I have no doubt that they will fulfill everything they told us would be done,” the village president said.
Pruitt said CTE’s corporate counsel “pushed back” on a few provisions while the agreement was being drafted, but were overall pleased with the incentives offered by the village.
“They accepted the offer on the table and have already signed (the developers agreement) to be overnighted,” he said at the board meeting.
Board approves zoning amendment to accessory structures
In other business, the Village Board on Monday approved an amended zoning ordinance pertaining to accessory uses and structures.
A public hearing was held, with no citizens present speaking on the topic.
Attorney Elaine Ekes, who also represents the village, explained that the revised ordinance addressed the size of accessory structures, which had limited residents from building larger-seized structures or adding a second story.
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