November 29, 2021

Volume XI, Number 333

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Cook County Adopts New Class 7c Real Estate Tax Incentive for Commercial Property

The Cook County Board of Commissioners recently added a new incentive class to specifically benefit commercial property. The Class 7c Commercial Urban Relief Eligibility ("CURE") incentive is designed to stimulate commercial real estate development that might not otherwise be possible.

This incentive provides a five year property tax reduction to qualifying commercial properties, and applies to new construction, substantial rehabilitation or the reoccupancy of formerly vacant and abandoned property.  The 7c classification provides for a reduced 10% assessment ratio for three years, 15% in the fourth year and 20% in the fifth year, and is renewable for one additional five year period.

As with other Cook County incentives, the municipality in which the property is located must pass a resolution or ordinance supporting the 7c application. The municipality must deem the site a redevelopment priority, and find that the 7c incentive is necessary for the development to occur on that site.

Properties applying for a 7c incentive must demonstrate that the property's assessed valuation or real estate taxes have declined or remained stagnant over the past six years due to the depressed condition of the property; that there is a reasonable expectation that the development is viable and likely to proceed; that the 7c incentive is necessary for the development to occur; and that the 7c incentive will ultimately result in increased property tax revenue and employment opportunities at the property.

A 7c application must be submitted to both the Assessor and the Cook County Bureau of Economic Development ("CCBED") with all necessary supporting data. The CCBED and Assessor will then review the application and supporting material to determine whether the application meets the standards for the 7c incentive.

© 2021 Much Shelist, P.C.National Law Review, Volume IV, Number 317
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About this Author

Scott L. David, Commercial Real Estate Attorney, Much Shelist Law Firm
Principal

Scott David advises real estate funds, private and public companies on a full range of commercial real estate matters and business transactions, including the buying, selling and leasing of all classes of commercial properties. He represents several investment funds in the acquisition, leasing and disposition of industrial properties. He has also worked with many businesses in the relocation, expansion or consolidation of their facilities, including new development and rehabilitation projects.

Scott has structured numerous, sophisticated forward...

312-521-2404
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