Monday, March 02, 2009
SouthtownStar
by John K. Ryan

In an attempt to save the Steve Peters Chevrolet dealership in Homewood, Mayor Rich Hofeld is asking Cook County to amend its rules governing a property tax incentive.

The mayor sent a letter recently to Cook County Commissioner Joan Murphy to waive for 180 days to a year the requirement that a property needs to be vacant for two years to receive a Class 8 tax incentive.

If it receives the Cook County incentive, the dealership property at 18033 S. Halsted St. would be assessed at 16 percent of market value for 10 years, at 23 percent in year 11 and at 30 percent in year 12, before returning to the standard 38 percent tax rate for commercial businesses in year 13.

"If they shut down now, we get nothing," Hofeld said. "They employ about 50 people and average about $200,000 a year in sales tax revenue for the village."

Hofeld, who met last week with Maurice Jones, Cook County director of planning and development, to answer any questions about the request, said he stressed that the exception should not just be given to the Homewood dealership.

"I recommended that the county should be a white knight for any industry the county considers to be in distress, or when a business changes ownership," Hofeld said.

Murphy said the Cook County Board of Commissioners would be addressing only the Homewood dealership for now, terming it an "emergency situation."

Murphy said she is recommending the requirement be waived for the Homewood dealership, citing the uniqueness of the situation.

"That property is not vacated, the business partnership is dissolving, and the only way to keep it in business is to get this incentive," Murphy said. "If it stays in the same (property tax) classification, it won't make it."

Murphy said commissioners will meet with Cook County Assessor Jim Houlihan on Wednesday to get approval. She feels confident the idea will be well accepted.

"We're looking for ways to stimulate the economy," she said.

If the assessor approves, Murphy will poll the other commissioners on the request.

"If they vote in the affirmative, we'll have it ratified at the March 17 (Cook County) board meeting."

Steve Phillipos, one of six partners who own the Homewood dealership, is looking to restructure the business to make him the principal owner/operator, but said getting property tax relief is necessary to do so.

"We went to the village to seek help in getting us tax relief and keep us going," Phillipos said. "Property taxes in Thornton Township can put you out of business and that's a tragedy. Some towns wait until businesses go under then try to get help to recruit business to those sites. We appreciate Mayor Hofeld working to keep us here."

Hofeld said if the vacancy requirement is waived, he will ask the village board to give the dealership the Class 8 tax break as well as a sales tax sharing incentive for the dealership.

"He (Phillipos) is looking for relief on real estate taxes and getting some working capital from private financing. The sales tax incentive would help collateralize the loan," Hofeld said.

John K. Ryan may be reached at jryan@southtownstar.com or(708) 802-8807.