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.