TO: Mayor and City Council
FROM: Dustin Anderson, Community Development Director
SUBJECT:
title
Resolution Approving Amendment #2 to Incentive Agreement (Property Tax Abatement) for Supermercados El Güero de Joliet, Inc. at 118 E. Jackson Street
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BACKGROUND:
On February 19, 2019, the Joliet City Council approved Resolution No. 7362 authorizing an incentive agreement with Supermercados El Güero, Inc. The agreement provided a five-year, 50% property tax abatement for the redevelopment of the 55,500-square-foot building located at 118 E. Jackson Street, Joliet, Illinois 60432 (PIN 30-07-10-304-003-0000).
On May 2, 2023, the City Council adopted Ordinance No. 18497 approving Amendment #1 to the agreement. The amendment reset the property tax abatement schedule from tax years 2021-2025 to tax years 2024-2028 due to construction delays related to the COVID-19 pandemic, including labor shortages and increased building material lead times.
As a result of these unforeseen delays, the project received its first property tax abatement during tax year 2025. Accordingly, the timeframe established under Amendment #1 must be revised to reflect a final abatement schedule covering tax years 2025-2029.
Supermercados El Güero, Inc. has provided the City with documentation demonstrating compliance with the terms of the original agreement. This includes redevelopment of the property for retail use, with approximately 48,500 square feet occupied by a grocery store, and fulfillment of the requirement that at least 75% of construction labor be sourced locally from Will County and paid prevailing wages throughout the duration of the project.
CONCLUSION:
Due to delays in the project caused by the COVID-19 pandemic, Supermercados El Güero was forced to shift its project completion timeline. The project has now been completed according to the agreement, and requires a final amendment to reflect a five-year property tax abatement covering tax years 2025 through 2029.
RECOMMENDATION:
recommendation
Based on the above, it is recommended that the Mayor and City Council approve the Resolution Approving Amendment #2 to Incentive Agreement (Property Tax Abatement) for Supermercados El Güero de Joliet, Inc. at 118 E. Jackson Street
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