A tax incentive that would pave the way for a Dunkin’ Donuts and Wingstop fast-food restaurant to be built on Elgin’s east side will be discussed Wednesday by the Elgin City Council.
“The area to be developed is the outlot located in front of 830 Summit St.,” Elgin Communications Specialist Molly Center said.
The development is proposed by Shree Kaira, which has a $355,000 contract to purchase the vacant lot and estimates it will cost $750,000 to building the two adjoining businesses, according to documents submitted to the city. Center said the lot has been empty at least since 1973.
If approved, it would be the second Wingstop in Elgin, the first being on South Randall Road, and the ninth Dunkin’ Donuts location.
The lot is in Cook County and close to Kane County. As such, it might be eligible for a Cook County Class 7c tax incentive.Taking into account that Cook’s property taxes are higher than Kane’s, the incentive uses a formula that reduces property taxes paid for at least five years.
“This is the first time staff can recall Elgin considering a 7c,” Center said.
To qualify for the incentive, the town in which the property is located must pass a resolution or ordinance supporting the Class 7c application and find that the incentive is necessary for the development to occur.
The council will discuss taking such a step at its committee of the whole meeting Wednesday.
“If we don’t do this, there won’t be anything built there,” Councilman Terry Gavin said.
“The incentive would help them get started and get them going,” Mayor Dave Kaptain said.
If it wins council support, the application would be sent to the Cook County Assessor’s Office and the Cook County Bureau of Economic Development for review.
If approved, Shree Kaira could to break ground this fall and be open by sometime next spring. The company could not be reached for comment.
Elgin staff said in documents given to the council that were the lot were to remain vacant and unimproved for the next five years, the property tax revenue generated for all taxing bodies would total about $47,720.
If the Class 7c incentive is granted by Cook County and the two businesses open at 830 Summit St., about $126,000 in property taxes would be generated over the next five years, assuming a fair market value of $560,000 for the development, staff said. If the project were built without the incentive, the landowner would pay an estimated $241,829 in property taxes over the next five years.
If the project was located in Kane County, Elgin staff estimates the total property taxes generated over five years would be about $95,190.