Cook County’s Economic Development Advisory Committee Passes Resolution Supporting First Class 7d Property Tax Incentive Recipient
(Cook County, IL) — Cook County’s Economic Development Advisory Committee (EDAC) on November 6 approved a resolution in support of the County’s first-ever Class 7d property tax incentive application, which would benefit a Pete’s Market located on the Southwest Side of Chicago.
The Class 7d property tax incentive program, established in 2022, aims to address food deserts by fostering grocery store development. The program offers reduced property taxes for 12 years, with an option to renew.
“We are thrilled that Pete’s Market is opening at a location where residents need easy access to healthy food,” said Cook County Board President Toni Preckwinkle. “We hope this tax incentive program inspires other grocery stores to expand into food deserts throughout Cook County. My administration remains committed to supporting economic development that encourages private investment to meet community needs.”
In December 2021, Pete’s Market purchased a property at 3250 W. 87th St., in the Ashburn neighborhood, for $2.4 million as part of a $15.7 million investment
The site, formerly an Ultra Foods, had been vacant since 2017.
Pete’s Market offers fresh produce, a full-service kitchen and in-house butchers. Pete’s has completely renovated the property, creating approximately 60 construction jobs and 150 full-time positions.
There are over 15 Pete’s Market locations throughout Chicagoland. With this incentive, this Ashburn location would receive a 60-percent reduction in its assessment rate over at least 10 years, resulting in reduced property taxes.
“Pete’s strives for excellence in not only our operations but also our building facilities, and it’s incentives like this that allows us to pour investments into both.” said Pete’s Market executive officer Stephanie Dremonas, whose father, Jimmy Dremonas, founded the company in the 1970s. “We extend our sincere gratitude to everyone who has contributed to securing this vital incentive.”
The standard assessment rate for this property is 25 percent of the market value. With a Class 7d property tax incentive, this property would receive a reduced assessment rate of 10 percent for the first 10 years, with a potential renewal for another 10 years. If not renewed, the rate would adjust to 15 percent in the 11th year and 20 percent in the 12th year.
The incentive defines a food desert in alignment with the Illinois Department of Public Health (IDPH), which defines it as an area that is “vapid of fresh fruit, vegetables, and other healthful whole foods, in part due to a lack of grocery stores, farmers' markets, or healthy food providers.”
A recent IDPH Illinois Food Deserts Annual Report identifies this Pete’s Market store as located in a food desert.
Cook County Commissioner Donna Miller (6th), who introduced the Food Desert Tax Incentive Ordinance, is pleased with the progress of the Pete’s Market application.
“I was motivated to introduce this legislation because the lack of access to fresh produce and healthy foods is a key factor in the health disparities we see in the Southland and across Cook County, and I believe that by incentivizing grocery stores to open in food deserts, we can make progress toward improving health outcomes for all residents,” Miller said. “Not only will this help create greater access in food deserts to healthy foods, but it will also serve as an economic development catalyst.”
To qualify for the incentive, additional requirements mandate that at least 55 percent of the workforce must be employed full-time.
Graham Grady, who is chair of EDAC, highlighted the multiple benefits of the development.
“This will eliminate a food desert,” Grady said. “Fresh food and vegetables will now be available to the residents of this community, and the property will be returned to the tax rolls after having been vacant for over seven years.
“This store also resulted in construction jobs associated with the renovation of the building, as well as numerous permanent full-time and part-time jobs. This project contributes to the economic vitality of Cook County.”
Applicants for the Class 7d property tax incentive must submit an application to the Cook County Assessor’s Office and the Cook County Bureau of Economic Development. Each application requires a resolution of support from the municipality where the development is located.
The City of Chicago supports Pete’s receiving the incentive, and EDAC’s resolution will be sent to the Assessor’s Office as part of the final review process.
This Pete’s Market is located in Cook County’s Third District, which Commissioner Bill Lowry has represented since 2018.
Lowry, who co-sponsored the Class 7d tax incentive legislation, said he is excited about the development.
“By supporting projects like Pete’s Market, we’re making essential investments in food access and economic vitality for our neighborhoods," Lowry said. "This program highlights Cook County’s commitment to incentivizing growth where it’s most needed and ensuring that our residents have access to fresh, healthy options close to home.”
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