For City Council Meeting of August 5, 2019 Item A13

Resolution 82-R-19, Status Designation for Hewn Bakery

For Action

Memorandum
To: Honorable Mayor and Members of the City Council
Administration & Public Works Committee

From: Johanna Leonard, Community Development Director

Paul Zalmezak, Economic Development Manager

Subject: Consideration of Resolution 82-R-19, Endorsing the Application of Oxcart,

LLC (dba Hewn) to the Cook County Assessor for Class 6b Status
Designation for Commercial Development of the Vacant Property Located
at 1731 Central Street

Date: July 22, 2019

Recommended Action:
Staff recommends the adoption of Resolution 82-R-19 “Endorsing the Application of
Oxcart, LLC (dba Hewn) to the Cook County Assessor for Class 6b Status Designation
for Commercial Development of the Vacant Property Located at 1731 Central Street,
Evanston, Illinois.”

Funding Source:
Not applicable

Summary:
Oxcart, LLC has independently owned and operated Hewn Bakery at 810 Dempster
Street since 2013 and is known for its hand-mixed, hand-shaped and naturally
fermented pastries and breads with grains, produce and dairy sourced from local
farmers. Hewn is a woman owned, LGBT business founded by Ellen King and Julie
Matthei. Ellen King has since authored Heritage Baking: Recipes for Rustic Breads and
Pastries Baked with Artisanal Flour from Hewn Bakery and has also been a featured
guest on television.

Hewn opened with five employees in a 1,200 square foot space. Hewn doubled its size
to 2,400 square feet with a small expansion into an adjacent space on Dempster and
grew the staff to 25. Hewn offers medical, dental, vision and a simple IRA retirement
plan for all full-time staff.

Hewn’s baking process is labor intensive and space needs have grown due to product
demand. Hewn’s staff of 25 works daily to mix the dough by hand, turning it every 30

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minutes for four hours. The bread ferments for 20 hours when it is then ready for
baking. Due to increased demand and the need to add employees, Hewn has outgrown
810 Dempster Street, and has initiated a search for new space. Staff has worked
closely with Hewn ownership over the last two years to retain the bakery in Evanston.
Hewn recently identified in a space in Chicago that fit space needs, but could not
negotiate a financially feasible deal. Because of Hewn's history with Evanston, and
knowing that Evanston is overall receptive to granting incentives, they ultimately
decided to keep their expansion local and support the community that allowed them to
first open their doors.

Fortunately, Hewn has identified 1731 Central Street, a 92-year old property that has
been vacant for over a year, last occupied by Honor Finance. The building is
approximately 6,000 square feet. With the purchase of 1731 Central, Hewn will be able
to expand its wholesale business and employ more local residents. Hewn will use 1731
Central Street as a manufacturing hub that will enable the business to open 2-3 satellite
locations in Cook County. Hewn plans to hire an additional six employees as the
business grows in the next 18 months.

Hewn is seeking City Council endorsement of a Class 6b designation for the property,
which will reduce the rate of assessment from 25% to 10%. Properties receiving Class
6b will be assessed at 10% of market value for the first 10 years, 15% in the 11th year
and 20% in the 12th year. This constitutes a substantial reduction in the level of
assessment and results in significant tax savings. A detailed summary of the Class 6b
assessment designation follows in the background section of this report, and attached is
the Cook County program documents.

The Class 6b will allow Hewn to afford the cost of acquiring and renovating the property
at 1731 Central Street, which according to Hewn, is suffering from severe functional
obsolescence. It is approximately 92 years old and was not constructed to modern
standards. Hewn will invest a considerable amount of money into updating and
rehabbing the subject property. The building needs several repairs and improvements,
including HVAC, water damage repair, tuckpointing and a new roof, to name a few.
According to Hewn’s application, they plan to incorporate a “viewable production area
for citizens to walk by and observe artisan bread and pastry production…to be able to
witness authentic, old world baking.”

Hewn estimates the initial cost to renovate 1731 Central to a useable condition for a
modern industrial tenant is approximately $729,100. Hewn will convert the majority of
the property to a manufacturing facility while still having a retail area for customers to
purchase baked goods. Hewn reports it will have to identify an alternative location in
another community for its operations if the 6b is not approved.

The analysis below highlights the difference between taxes paid on the property with the
Class 6b assessment and if the property does not receive the Class 6b assessment.
The complete analysis is attached. To illustrate the range of outcomes, staff requested
estimates of tax revenue based on three scenarios:

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 1. Hewn occupies the space without 6b
2. Hewn occupies the space with 6b
3. The building remains vacant

Total Est. Hewn 6b Tax Revenue Impact Over 12 Years (2019-2030)

City of Evanston
Total Property Tax Total Share of Tax
Scenario Generated Revenues
1. Occupied without 6b [1] $ 1,252,691.00 $207,946.69
2. Occupied with 6b $ 563,711.00 $93,576.01
3. Vacant without 6b $ 62,261.00 $10,335.25
[1] Not a feasible option for Hewn. Without 6b, they will not acquire space.

1731 Central is assessed at 25% of its fair market value. Using fair market value
numbers, based on the 2019 First Pass Assessed Value of the Building of $223,749,
the property will generate an estimated $62,260 in total tax revenue for all taxing
bodies over the proposed 12-year life of the incentive ($5,188 per year) if it were to
remain vacant (Scenario 3 in the table above). The City of Evanston would receive
approximately $10,000. Scenario 3 is unlikely as it assumes the building will remain
vacant for the estimated 12 year run of the requested 6b incentive. Scenario 3 provides
the extreme lower end of the range of tax revenue generation for illustrative purposes.

Using the same assumptions, the property would generate over $1.2 million if occupied
without 6b and over $200,000 for the City of Evanston. However, scenario 1 is not
really an alternative as Hewn has indicated they will not close the acquisition of the
property without the incentive. But it provides an illustrative example of the potential
high range of tax revenue generate.

By contrast, based on the market value of $1,524,100 ($795,000 purchase price +

$729,100 improvements + full occupancy) the property would generate an estimated
$563,711 in total tax revenue over the propose 12-year life of the incentive ($41,756 per
year), as summarized in scenario 2. This is an increase in potential tax revenue of
approximately $501,450 over the life of the incentive. The total tax revenue collected
by the City over 12 years would be approximately $93,000 ($8,000 annually). Scenario
2 provides a realistic estimate if Hewn were to occupy with the 6b.

In summary, the Class 6b provides an opportunity to retain a growing Evanston made

and Evanston based company operated by Evanston residents. If Resolution 82-R-19
is approved, the next step in the application process will be for the applicant to re-
submit the full application to the Cook County Assessor. The Assessor will forward this
application to the Economic Development Advisory Committee of Cook County (EDAC)
which will within 30 days review the application and present its findings to the Assessor.
The Assessor will then make a final determination within 30 days of receiving the report
from the EDAC.

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Background:
According to the Cook County Assessor, “the Class 6b classification is designed to
encourage industrial development throughout Cook County by offering a real estate tax
incentive for the development of new industrial facilities, the rehabilitation of existing
industrial structures, and the industrial reutilization of abandoned buildings. The goal of
Class 6b is to attract new industry.”

“Under the incentive provided by Class 6b, qualifying industrial real estate would be
eligible for the Class 6b level of assessment from the date that new construction or
substantial rehabilitation is completed and initially assessed or, in the case of
abandoned property, from the date of substantial re-occupancy. Properties receiving
Class 6b will be assessed at 10% of market value for the first 10 years, 15% in the 11th
year and 20% in the 12th year. This constitutes a substantial reduction in the level of
assessment and results in significant tax savings. In the absence of this incentive,
industrial real estate would normally be assessed at 25% of its market value.” After the
12 years has expired, the property returns to the normal assessment level of 25 percent
of fair market value. Attached to this memorandum is the Eligibility Bulletin regarding 6b
that provides more information on this incentive.

The incentive is available to “real estate used primarily for industrial purposes” which is
defined as, “Any real estate used primarily in manufacturing ... or in the extraction or
processing of raw materials unserviceable in their natural state to create new physical
products or materials, or in the processing of materials for recycling, or in the
transportation or storage of raw materials or finished or partially finished physical goods
in the wholesale distribution of such materials or goods for sale or leasing.

Legislative History:
N/A

Attachments
 Resolution 82-R-19
 6b Tax Revenue Analysis
 Cook County Class 6b Eligibility Bulletin
 Oxcart LLC Application

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 7/23/2019

82-R-19

A RESOLUTION

Endorsing Oxcart LLC’s Application to the Cook County Assessor

for 6b Status Designation for Renovation and Redevelopment of a
Vacant Building at 1729-1733 Central Street, Evanston, Illinois

WHEREAS, the City of Evanston, Cook County, Illinois, (the “City”)

is a home rule unit of government under the Illinois Constitution of 1970; and

WHEREAS, there exists within the borders of the City a recognized

need for economic development, business expansion and employment; and

WHEREAS, there exists a need to aid in financing the cost of

economic development projects in order to encourage an increase in commerce

and industry within the City, thereby reducing unemployment and providing for

the increased welfare and prosperity of the residents; and

WHEREAS, the City Council desires to promote the redevelopment

of vacant buildings and retain local business to allow them to expand within its

borders; and

WHEREAS, the Cook County Assessor operates under an

ordinance, known as the Cook County Real Property Classification Ordinance,

which the Cook County Board of Commissioners enacted in order to encourage

industrial and commercial development in Cook County; and

WHEREAS, Oxcart LLC d/b/a “Hewn Bakery” (the “Applicant”) has

applied for or is applying for Class 6b property status pursuant to said ordinance,

for certain real estate, located at 1729-1733 Central Street in the City, with the

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 82-R-19

Property Index Number 05-34-427-017-0000 (the “Subject Property”), and has

documented that such incentive provided for in said ordinance is necessary for

renovation of an existing building to occur on the Subject Property; and

WHEREAS, applicant seeks affirmative support from the City of

Evanston for its application to the Cook County Assessor and the City Council

finds it is in the best interests of the City to support their efforts to receive this 6b

designation,

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL

OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS:

SECTION 1: That the City Council hereby grants the request of the

Applicant to have the Subject Property declared eligible for Class 6b status

pursuant to the Cook County Real Property Classification Ordinance because the

City Council recognizes that the incentive benefits provided for in said ordinance

are necessary for new construction to occur on the Subject Property.

SECTION 2: The City Council hereby supports and consents to the

Cook County Assessor granting the Subject Property 6b status pursuant to the

Cook County Real Property Classification Ordinance.

SECTION 3: The City Manager is hereby authorized and directed

to sign any documents necessary to implement this resolution.

SECTION 3: That this Resolution 82-R-19 shall be in full force and

effect from and after its passage and approval in the manner provided by law.

185 ~2~
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 82-R-19

_______________________________
Stephen H. Hagerty, Mayor

Attest: Approved as to form:

_______________________________ _______________________________
Devon Reid, City Clerk Michelle L. Masoncup, Corporation
Counsel
Adopted: __________________, 2019

186 ~3~
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 12 Year Tax Estimates
1729-1733 Central Street
Evanston, Illinois 60201
(PIN: 05-34-427-017-0000)

Estimated Taxes Based on:

Estimated Taxes at 2019 Market Value $795,000 + $729,100 in Improvements, Full Occupancy, and no 6b
Compared to
Estimated Taxes at 2019 Market Value $795,000 + $729,100 in Improvements, Full Occupancy, and 6b
Compared to
Estimated Taxes at 2019 Cook County Market Value, Full Vacancy, and no 6b

Estimated Taxes at 2019 Market Value $795,000 +

Estimated Taxes at 2019 Market Value $795,000 + Estimated Taxes at 2019 Cook County Market Value, Full
$729,100 in Improvements, Full Occupancy, and no
$729,100 in Improvements, Full Occupancy, and 6b Vacancy, and no 6b
6b

Estimated Taxes at
2019 Market Value
$795,000 + Estimated Taxes at
$729,100 in Estimated 2019 Market Value Estimated Taxes at Year of Estimated
Estimated Improvements, Full Assessment Assessed Value Estimated Tax $795,000 + $729,100 in Assessment Estimated 2019 Cook County Proposed Assessment Assessed Value Estimated
2018 Tax 2018 Effective Tax Occupancy, and no Level Without Without a Class Without a Improvements, Full Level with a Assessed Value Estimated Tax Market Value, Full New Level With NO Without a Class Taxes With a
Tax Year Rate Multiplier Rate* 6b Class 6b 6b Class 6b Occupancy, and 6b Class 6b** With a Class 6b With a Class 6b Vacancy, and no 6b Incentive Class 6b 6b Class 6b

2019 9.412% 2.9109 27.397% $1,524,100 25% $381,025 $104,391 $1,524,100 10% $152,410 $41,756 $75,750 1st 25% $18,938 $5,188

2020 9.412% 2.9109 27.397% $1,524,100 25% $381,025 $104,391 $1,524,100 10% $152,410 $41,756 $75,750 2nd 25% $18,938 $5,188

2021 9.412% 2.9109 27.397% $1,524,100 25% $381,025 $104,391 $1,524,100 10% $152,410 $41,756 $75,750 3rd 25% $18,938 $5,188

2022 9.412% 2.9109 27.397% $1,524,100 25% $381,025 $104,391 $1,524,100 10% $152,410 $41,756 $75,750 4th 25% $18,938 $5,188

2023 9.412% 2.9109 27.397% $1,524,100 25% $381,025 $104,391 $1,524,100 10% $152,410 $41,756 $75,750 5th 25% $18,938 $5,188

2024 9.412% 2.9109 27.397% $1,524,100 25% $381,025 $104,391 $1,524,100 10% $152,410 $41,756 $75,750 6th 25% $18,938 $5,188

2025 9.412% 2.9109 27.397% $1,524,100 25% $381,025 $104,391 $1,524,100 10% $152,410 $41,756 $75,750 7th 25% $18,938 $5,188

2026 9.412% 2.9109 27.397% $1,524,100 25% $381,025 $104,391 $1,524,100 10% $152,410 $41,756 $75,750 8th 25% $18,938 $5,188

2027 9.412% 2.9109 27.397% $1,524,100 25% $381,025 $104,391 $1,524,100 10% $152,410 $41,756 $75,750 9th 25% $18,938 $5,188

2028 9.412% 2.9109 27.397% $1,524,100 25% $381,025 $104,391 $1,524,100 10% $152,410 $41,756 $75,750 10th 25% $18,938 $5,188

2029 9.412% 2.9109 27.397% $1,524,100 25% $381,025 $104,391 $1,524,100 15% $228,615 $62,635 $75,750 11th 25% $18,938 $5,188

2030 9.412% 2.9109 27.397% $1,524,100 25% $381,025 $104,391 $1,524,100 20% $304,820 $83,513 $75,750 12th 25% $18,938 $5,188

Total Estimated Taxes (2019 to 2030) $1,252,691 Total Estimated Taxes (2019 to 2030) $563,711 Total Estimated Taxes (2019 to 2030) $62,261

Property Tax Revenue Generated from the Property's Class 6b Tax Incentive: $501,450

Notes:

* The 2019 Effective Tax Rate (the 2018 tax rate x the 2018 multiplier) was used. It does not take into account any increases or decreases in the Effective Tax Rate between 2019 and 2030.

**The above is based on the assumption that the Class 6b Tax Incentive Renewal for the subject property will be granted in 2018.
The above estimates are speculative, and should be treated as such.

7/24/2019
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 July 25, 2019

VIA FEDERAL EXPRESS

Wally Bobkiewicz
City Manager
2100 Ridge Avenue
Evanston, IL 60201

Re: Class 6b Application

Oxcart, LLC
1729-1733 Central Street
Evanston, Illinois 60201
PIN: 05-34-427-017-0000

Dear Wally:

Oxcart, LLC, or its assignee (the “Applicant”) is seeking to purchase the above-referenced property,
and is requesting a Resolution supporting and consenting to a Class 6b Incentive based on occupation of
abandoned property for less than twenty-four (24) months continuous vacancy with a purchase for value,
special circumstances, and substantial rehabilitation.

1729-1733 Central St., Evanston, IL 60201 (PIN: 05-34-427-017-0000) consists of an approximately

4,400 square foot building (the “Building”) on an approximately 7,750 square foot site. The Building is
approximately 92 years old and has been vacant for the last year. The previous occupant of the subject is
Honor Finance. Honor Finance ceased operating at the subject property on June 1st, 2018. The subject
property has been 100% vacant and unused since June 1st, 2018.

The Applicant plans on leasing the Building to related entity, Hewn Bakery (“Hewn”). Hewn will
utilize the Building to produce and distribute its organic proprietary baked goods. Applicant expects to add
approximately 4 full-time and 3 part-time jobs once construction is complete. Furthermore, the Applicant
expects to create approximately 15-18 temporary construction jobs.

Hewn is a woman owned, LGBT business founded by Ellen King and Julie Matthei in 2013. Hewn
has continued to grow and expand over the last 6 years to become a recognized wholesale and retail bakery.
Hewn opened its doors in the Main Dempster Mile neighborhood in 2013 with 5 employees in a 1200 square
foot space. Hewn doubled its size with a small expansion in that location in 2016. Currently, Hewn has 25
employees and is proud to offer medical, dental, vision and a simple IRA retirement plan for all full time
staff. With the purchase of a 6000 square foot building on Central Street, Hewn will be able to expand its
wholesale business and employ more local residents. Hewn plans to hire an additional 5-6 employees as the
business grows in the next 18 months. Hewn will use 1731 Central St as a manufacturing hub that will
enable the business to open 2-3 satellite locations in Cook County.

The Building is suffering from severe functional obsolescence. It is approximately 92 years old and
was not constructed to modern standards. Hewn will invest a considerable amount of money into updating
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and rehabbing the subject property. The Building needs several repairs and improvements, including HVAC,
water damage repair, tuckpointing and a new roof, to name a few. The Applicant also plans to create a
viewable production area for citizens to walk by and observe artisan bread and pastry production. Hewn
prides itself on making everything by hand, every day. Hewn wants the public to be able to witness
authentic, old world baking while going about their daily lives. Hewn will convert the majority of the
property to a manufacturing facility while still having a retail area for customers to purchase baked goods.
Hewn views this as a great opportunity for the community to benefit by having access to quality baked goods
and to improve a property that has been vacant for over 12 months. The estimated initial cost to revitalize
this location to a useable condition for a modern industrial tenant is approximately $729,100.

Due to the high taxes of Cook County, if the Class 6b Tax Incentive is not approved, the Applicant
will be forced to consider choosing an alternative location in a neighboring County or community to expand
its business that offers it a Class 6b Tax Incentive. Applicant currently leases another property in Evanston
and would prefer to stay to do business locally. Currently, the Building is assessed at 25% of its fair market
value. Using fair market value numbers, based on the 2019 First Pass Assessed Value of the Building of
$223,749, the Building will only generate an estimated $62,260 in total tax revenue over the proposed 12-
year life of the incentive ($5,188 per year) if it were to remain vacant.

By contrast, based on the Market Value of $1,524,100 ($795,000 purchase price + $729,100
improvements + full occupancy) the Building would generate an estimated $563,711 in total tax revenue
over the propose 12-year life of the incentive ($41,756 per year). This is an increase in potential tax revenue
of approximately $501,450 over the life of the incentive.

In addition to increasing property tax revenue, should the Class 6b Tax Incentive be approved, the
development will create approximately 6 new jobs, which will stimulate the City of Evanston’s economy by
supporting local businesses. By supporting the City of Evanston’s local businesses the Applicant will create
sales tax revenues for the City.

As stated above, without approval of the Class 6b Tax Incentive, the Applicant does not believe it
will be financially feasible to substantially remodel the Building because of the County’s high tax burden.
Therefore, the Applicant will be forced to look to expand its business in a county with a lower tax burden, or
a community in Cook County who offers a Class 6b Tax Incentive.

Based on the foregoing, the Applicant requests that the City of Evanston review its Class 6b request
and approve a Resolution supporting and consenting to a Class 6b Incentive for the subject property based on
occupation of abandoned property for less than twenty-four (24) months continuous vacancy with a purchase
for value, special circumstances, and substantial rehabilitation. Therefore, please review this letter and
attached materials, and place the Applicant on the agenda for the next available City of Evanston Board of
Trustees’ meeting.

Should you have any questions or concerns, or require additional information, please do not hesitate
to contact me at (312) 580-1595.

Regards,

Christopher Zarek, Esq.

Encls.
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 EDS AFFIDAVIT

I, ________________________ as agent for Oxcart, LLC (the “Applicant”) does hereby

certify that it would attest to the following facts as required by Sections 74-46 and 74-62 through
74-73 of the Cook County Code if called to testify:

1. That I am a duly authorized agent for Applicant, who is the contract purchaser of the
property located at 1729-1733 Central St., Evanston, IL 60201; PIN: 05-34-427-017-
0000 (the “Subject Property”).

2. Applicant does not own any properties in Cook County.

3. Applicant’s ownership is as follows:

Oxcart, LLC:

Ellen King – 50% member-manager

3148 Harrison St.
Evanston, IL 60201

Julie Matthei – 50% member-manager

3148 Harrison St.
Evanston, IL 60201

4. To my knowledge and after reviewing the Applicant’s records, Applicant is not

delinquent in the payment of any property taxes administered by Cook County or by a local
municipality.

Further Affiant Sayeth Not

_______________________________

Date: __________________________

Subscribed and sworn before me

This ______ day of _______, 2019

____________________________
Signature of Notary Public

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 COOK COUNTY ASSESSOR’S OFFICE
COOK COUNTY ASSESSOR 118 NORTH CLARK STREET, CHICAGO, IL 60602
PHONE: 312.443.7550 FAX: 312.603.6584
FRITZ KAEGI WWW.COOKCOUNTYASSESSOR.COM

CLASS 6B
ELIGIBILITY APPLICATION
Carefully review the Class 6B Eligibility Bulletin before completing this Application. For assistance,
please contact the Assessor’s Office, Development Incentives Department (312) 603-7529. This
application, a filing fee of $500.00, and supporting documentation (except drawings and surveys) must
be filed as follows:

This application must be filed PRIOR TO the commencement of New Construction or PRIOR TO the
commencement of Substantial Rehabilitation Activities or PRIOR TO the commencement of
Reoccupation of Abandoned Property.

Applicant Information
Oxcart, LLC
Name: ___________________________________ 847 )__________________
Telephone: ( _____ 644-3732
3148 Harrison Street
Address: _________________________________________________________________________
Evanston
City: ________________________________ IL
State: _____ 60201
Zip Code: ________________

Contact Person (if different than the Applicant)

Ellen King
Name: ___________________________________ 847 ) _________________
Telephone: ( _____ 644-3732
3148 Harrison Street
Address: _________________________________________________________________________
Evanston
City: ________________________________ IL
State: _____ 60201
Zip Code: ________________
ellen@hewnbread.com
Email: __________________________________________________________________________

Property Description (per PIN)

If you are applying for more than three different PINs, please submit the additional PIN information in
an attachment.

Street Address: 1729-1733 Central Street

(1) _____________________________________________________________
05-34-427-017-0000
Permanent Real Estate Index Number: _________________________________
(2) _____________________________________________________________
Permanent Real Estate Index Number: _________________________________
(3) _____________________________________________________________
Permanent Real Estate Index Number: _________________________________
Evanston
City: ________________________________ IL
State: _____ 60201
Zip Code: ________________
Evanston
Township: ____________________________ B1-a
Existing Class: ___________________________

Attach legal description, site dimensions and square footage and building dimensions and square footage.

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Identification of Person Having an Interest in the Property
Attach a complete list of all owners, developers, occupants and other interested parties (including all
beneficial owners of a land trust) identified by names and addresses, and the nature and extent of
their interest.

Industrial Use
Attach a detail description of the precise nature and extent of the intended use of the subject property,
specifying in the case of the multiple uses the relative percentages of each use.

Include copies of materials, which explain the occupant’s business, including corporate letterhead,
brochures, advertising material, leases, photographs, etc.

Nature of Development
Indicate nature of proposed development by checking the appropriate space:

[ ] New Construction (Read and Complete Section A)

[ ] Substantial Rehabilitation (Read and Complete Section A)
Incentive only applied to the market value attributable to the rehabilitation
[ ] Occupation of Abandoned Property - No Special Circumstance
(Read and Complete Section B)
[✔] Occupation of Abandoned Property - With Special Circumstance
(Read and Complete Section C)
[ ] Occupation of Abandoned Property - (TEERM Supplemental Application)
(Read and Complete Section C)

SECTION A (NEW CONSTRUCTION/SUBSTANTIAL REHABILITATION)

If the proposed development consists of New Construction or Substantial Rehabilitation, provide the
following information:
Estimated date of construction
commencement (excluding demolition, if any): ___________________________

Estimated date of construction completion: _____________________________

Attach copies of the following:

1. Specific description of the proposed New Construction or Substantial Rehabilitation

2. Current Plat of Survey for subject property
3. 1st floor plan or schematic drawings
4. Building permits, wrecking permits and occupancy permits (including date of issuance)
5. Complete description of the cost and extent of the Substantial Rehabilitation or New
Construction (including such items as contracts, itemized statements of all direct and
indirect costs, contractor’s affidavits, etc)

Page 2 of 9

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SECTION B (ABANDONED PROPERTY WITH NO SPECIAL CIRCUMSTANCE)
If the proposed development consists of the reoccupation of abandoned property, purchased for value, complete
(1) and (2) below:

1. Was the subject property vacant and unused for at least 24 continuous months prior to the
purchase for value?

[ ] YES [ ] NO

When and by whom was the subject property last occupied prior to the purchase for value?
______________________________________________________________________________
______________________________________________________________________________

Attach copies of the following documents:

(a) Sworn statements from person having personal knowledge attesting to the fact and the
duration of vacancy and abandonment

(b) Information (such as statements of utility companies) which demonstrate that the
property was vacant and unused and indicate duration of such vacancy

2. Application must be made to the Assessor prior to occupation:

Estimated date of reoccupation: _________________________

Date of Purchase: _________________________
Name of purchaser: _________________________
Name of seller: _________________________
Relationship of purchaser to seller: _________________________

Attach copies of the following documents:

(a) Sale Contract

(b) Closing Statement
(c) Recorded Deed
(d) Assignment of Beneficial Interest
(e) Real Estate Transfer Declaration

Page 3 of 9

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SECTION C (SPECIAL CIRCUMSTANCES)
If the applicant is seeking special circumstances to establish that the property was abandoned for
purposes of the Incentive where there was a purchase for value, but the period of abandonment prior to
purchase was less than 24 months, complete section (1).

If the applicant is seeking special circumstances to establish that the property was abandoned for
purposes of the Incentive where there was no purchase for value, but the period of abandonment prior
to the application 24 continuous months or greater, complete section (2).

If the applicant is seeking special circumstances to establish that the property was abandoned for
purposes of the Incentive where there was no purchase for value, but the period of abandonment prior
to the application was greater than 12 continuous months and less than 24 continuous month,
complete section (2) and the TEERM Supplemental Application.

13 months
1. How long was the period of abandonment prior to the purchase for value? ________________

When and by whom was the subject property last occupied prior to the purchase for value?
Honor Finance LLC - 06/01/2018
___________________________________________________________________________
___________________________________________________________________________

Attach copies of the following documents:

(a) Sworn statements from persons having personal knowledge attesting to the fact and the
duration of the vacancy and abandonment
(b) Information (such as statements of utility companies) which demonstrate that the
property was vacant and unused and indicate duration of vacancy
(c) Include the finding of special circumstances supporting “abandonment” as determined
by the municipality, or the County Board, if located in an unincorporated area. Also
include the ordinance or resolution from the Board of Commissioners of Cook County
stating its approval for less than 24-month abandonment period.
Application must be made to the Assessor prior to the commencement of reoccupation of the
abandoned property.
Estimated date of Reoccupation: 01/15/2020
____________________________
Date of purchase: ____________________________
Name of purchaser: Oxcart, LLC
____________________________
Name of seller: Honor Finance, LLC / Robert DiMeo
____________________________
Relationship of purchaser to seller: None
____________________________

Attach copies of the following documents:

(a) Sale Contract
(b) Closing Statement
(c) Recorded Deed
(d) Assignment of Beneficial Interest
(e) Real Estate Transfer Declaration

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2. How long has the subject property been unused?
[ ] 24 or greater continuous months (Eligible for Special Circumstance)
[ ] 12 continuous months but less than 24 continuous months (Eligible for Special
Circumstance under TEERM) - Complete TEERM Supplemental Application
[ ] Less than 12 continuous months (Not Eligible for Special Circumstance)

When and by whom was the subject property last occupied prior to the filing of this
application?
___________________________________________________________________________
___________________________________________________________________________

Attach copies of the following documents:

(a) Sworn statements from persons having personal knowledge attesting to the fact and the
duration of the vacancy and abandonment
(b) Information (such as statements of utility companies) which demonstrate that the
property was vacant and unused and indicate duration of vacancy
(c) Include the finding of special circumstances supporting “abandonment” as determined
by the municipality, or the County Board, if located in an unincorporated area. Also
include the ordinance or resolution from the Board of Commissioners of Cook County
stating its approval for lack of a purchase for value.

Application must be made to Assessor prior to the commencement of reoccupation of the

abandoned property.

Estimated date of reoccupation: ___________________________

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 TEERM SUPPLEMENTAL APPLICATION
(This form will ONLY be utilized for applicants who specifically elect for TEERM)

This supplemental eligibility application is for properties that have been abandoned (due to special
circumstances) for at least 12 continuous months and less than 24 continuous months with no purchase
taking place.

Under the TEERM Program, qualifying industrial real estate would be eligible for the Class 6B level of
assessment from the date of substantial re-occupancy of the abandoned property. Properties receiving
Class 6B will be assessed at 10% of market value for the first 10 years, 15% in the 11th year and 20% in
the 12th year. The terms of this program are Not Renewable.

No applications will be taken after November 30, 2018.

I __________________________________ applicant/representative hereby specifically elect

to submit this Supplemental Application for the TEERM program.

Further affiant sayeth not.

_________________________________________ ____________________________________
Agent’s Signature Agent’s Name & Title

_________________________________________ ____________________________________
Agent’s Mailing Address Agent’s Telephone Number

_________________________________________ ____________________________________
Applicant’s Name Applicant’s Mailing Address

_________________________________________
Applicant’s e-mail address

Subscribed and sworn before me this _____ day of ________________ , 20 ______

_____________________________________________________________________
Signature of Notary Public

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EMPLOYMENT OPPORTUNITIES
15-18
How many construction jobs will be created as a result of this development? ___________

How many new permanent full-time and part-time employees do you now employ in Cook County?
16
Full-time: _________ 6
Part-time: ________

How many new permanent full-time jobs will be created as a result of this proposed development?
4
_____
How many new permanent full-time jobs will be created as a result of this proposed development?
3
_____

LOCAL APPROVAL
A certified copy of a resolution or ordinance from the municipality in which the real estate is located
(or the County Board, if the real estate is located in an unincorporated area) should accompany this
Application. The ordinance or resolution must expressly state that the municipality supports and
consents to this Class 6B Application and that it finds Class 6B necessary for development to occur
on the subject property. If a resolution is unavailable at the time the application is filed, a letter from
the municipality or the County Board, as the case may be, stating that a resolution or ordinance
supporting the incentive has been requested may be filed with this application instead. If the
applicant is seeking to apply based on the reoccupation of abandoned property and will be seeking a
finding of “special circumstances” from the municipality, in addition to obtaining a letter from the
municipality confirming that a resolution or ordinance supporting the incentive has been requested,
the applicant must file a letter from the County Board confirming that a resolution validating a
municipal finding of special circumstances has been requested. If, at a later date, the municipality or
the County Board denies the applicant’s request for a resolution or ordinance, the applicant will be
deemed ineligible for the Class 6B incentive, whether or not construction has begun. In all
circumstances, the resolution must be submitted by the time the applicant files an “Incentive
Appeal”.

I, the undersigned, certify that I have read this Application and that the statements set forth in this
Application and in the attachments hereto are true and correct, except as those matters stated to be on
information and belief and as to such matters the undersigned certifies that he/she believes the same to
be true.

_________________________________________ ____________________________________
Signature Date

_________________________________________ ____________________________________
Print Name Title

10/4/13

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 INCENTIVES CLASS LIVING WAGE ORDINANCE AFFIDAVIT

Ellen King
____________________________________________ as agent for the applicant set forth below, who
is seeking a classification incentive as referenced below, I do hereby state under oath as follows:

1. As the agent for the applicant set forth below, I have personal knowledge as to the facts stated herein.

2. The property identified by PIN(s) with commonly known address(es), listed in Exhibit A attached
and herein incorporated, are/is the subject of a pending application/renewal (circle as appropriate)
for one of the following development incentives provided by the Code of Ordinances of Cook
County, Chapter 74, Article II, Division 2, The Cook County Real Property Assessment
Classification Ordinance, Sec.74-60 et seq., as amended:
X Class 6B
____ ____ Class 8 (Industrial property) ____ Class 9

3. I have reviewed the Code of Ordinances of Cook County, Chapter 34, Article IV, Division 1 and The
Cook County Living Wage Ordinance, Sec. 34-127 et seq., as amended (the “Ordinance”), and
certify that the applicant is in compliance with the above referenced Cook County Living Wage
Ordinance, due to one of the following options (check as appropriate):

X Applicant is currently paying a living wage to its employees, as defined in the Ordinance.
____

OR

____ Applicant is not required to pay a living wage, pursuant to the Ordinance.

Further affiant sayeth not.

_________________________________________
Ellen King - Member/Manager
____________________________________
Agent’s Signature Agent’s Name & Title
3148 Harrison St., Evanston, IL 60201
_________________________________________ 847-644-3732
____________________________________
Agent’s Mailing Address Agent’s Telephone Number
Oxcart, LLC
_________________________________________
3148 Harrison St., Evanston, IL 60201
____________________________________
Applicant’s Name Applicant’s Mailing Address
ellen@hewnbread.com
_________________________________________
Applicant’s e-mail address

Subscribed and sworn before me this _______ day of ______________ , 20 ______

_____________________________________________________________________
Signature of Notary Public

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 EXHIBIT A
(Please type or Print)

PIN(s) Common Address

05-34-427-017-0000
_______________________________________
1729-1733 Central St., Evanston, IL 60201
_______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

_______________________________________ _______________________________________

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 COOK COUNTY ASSESSOR’S OFFICE
COOK COUNTY ASSESSOR 118 NORTH CLARK STREET, CHICAGO, IL 60602
PHONE: 312.443.7550 FAX: 312.603.3616
FRITZ KAEGI WWW.COOKCOUNTYASSESSOR.COM

CLASS 6B
ELIGIBILITY BULLETIN

Cook County Living Wage Ordinance

Please be advised that every applicant for this incentive will be required to provide an affidavit
to the Assessor’s Office to confirm compliance with the Cook County Living Wage Ordinance.
The Cook County Assessor will not grant any request for incentive classification until it
receives the required affidavit.

Incentive Benefits
The Class 6b classification is designed to encourage industrial development throughout Cook
County by offering a real estate tax incentive for the development of new industrial facilities, the
rehabilitation of existing industrial structures, and the industrial reutilization of abandoned
buildings. The goal of Class 6b is to attract new industry, stimulate expansion and retention of
existing industry and increase employment opportunities.
Under the incentive provided by Class 6b, qualifying industrial real estate would be eligible for the
Class 6b level of assessment from the date that new construction or substantial rehabilitation is
completed and initially assessed or, in the case of abandoned property, from the date of
substantial re-occupancy. Properties receiving Class 6b will be assessed at 10% of market value
for the first 10 years, 15% in the 11th year and 20% in the 12th year. This constitutes a
substantial reduction in the level of assessment and results in significant tax savings. In the
absence of this incentive, industrial real estate would normally be assessed at 25% of its market
value.
Where buildings or other structures qualify for the incentive as new construction or as abandoned
property as defined below, the reduced level of assessment under Class 6b will apply to those
structures in their entirety as well as to the land upon which they are situated. Where there is
substantial rehabilitation of an existing structure which has not been abandoned, the reduced
incentive level of assessment is applicable to the additional market value attributable to the
rehabilitation, including qualified land related to the rehabilitation. (Please note that the
additional value attributable to the rehabilitation for assessment purposes is likely to be
lower than the actual amount spent on the rehabilitation.) Land qualifies when the
rehabilitation adds vertical or horizontal square footage to the improvements. The amount of land
eligible for the incentive shall be in such proportion as the square footage added by the
rehabilitation bears to the total square footage of the improvements on the parcel.

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Eligibility Requirements
Real estate is eligible for Class 6b status under the following conditions:
1. The real estate is used primarily for "industrial purposes".
2. There is either (a) new construction, (b) substantial rehabilitation, or (c) substantial re-
occupancy of "abandoned" property.
3. An Eligibility Application and supporting documents have been timely filed with the Office
of the Assessor according to deadlines as set forth in the "What Must Be Filed" and "Time
for Filing" sections of this Bulletin.
4. The municipality in which such real estate is located (or the County Board, if the real
estate is located in an unincorporated area) must, by lawful resolution or ordinance,
expressly state that it supports and consents to the filing of a Class 6b Application and that
it finds Class 6b necessary for development to occur on the subject property.
The following definitions, as set forth in the Cook County Real Property Assessment
Classification Ordinance, pertain to the Class 6b incentive provision:
Industrial purposes: "Any real estate used primarily in manufacturing ... or in the extraction
or processing of raw materials unserviceable in their natural state to create new physical
products or materials, or in the processing of materials for recycling, or in the transportation or
storage of raw materials or finished or partially finished physical goods in the wholesale
distribution of such materials or goods for sale or leasing."
Manufacturing: "The material staging and production of goods used in procedures
commonly regarded as manufacturing, processing, fabrication, or assembling which changes
existing material into new shapes, new qualities, or new combinations and including research
and development associated with the production of goods."
Abandoned property: "Buildings and other structures that, after having been vacant and
unused for at least 24 continuous months, are purchased for value by a purchaser in whom
the seller has no direct financial interest." An exception to this definition shall be, “if the
municipality or the Board of Commissioners, as the case may be, finds that special
circumstances justify finding that the property is ‘abandoned’ for the purpose of Class 6b.”
The finding of abandonment, along with the specification of the special circumstances, shall
be included in the resolution or ordinance supporting and consenting to the incentive
application. Not withstanding the foregoing, special circumstances may not be determined
to justify finding that a property is deemed “abandoned” where:
A. There has been a purchase for value and the buildings and other structures have not
been vacant and unused prior to such purchase; or
B. There has been no purchase for value and the buildings and other structures have
been vacant and unused for less than 24 continuous months.
If the ordinance or resolution containing a finding of “special circumstances” is that of a
municipality, the approval of the County Board of Commissioners is required to validate
such a finding that the property is deemed “abandoned” for purposes of the incentive, and a
resolution to that effect shall be included with the eligibility application.

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What Must Be Filed
An applicant seeking the reclassification of real estate to Class 6b is required to file a "Class 6b
Eligibility Application" with the Office of the Assessor. At the time of filing the application, a filing
fee of $500.00 must be paid. In addition, an applicant may submit, at the same time, a certified
copy of an ordinance or resolution adopted by the municipality in which the real estate is located
(or the County Board, if the real estate is located in an unincorporated area) expressly stating that
it supports and consents to the filing of a Class 6b Application and that it finds Class 6b
necessary for development to occur on the subject property. If the resolution is not filed at the
time the Eligibility Application is submitted to the Assessor, the applicant must file, at that time, a
letter from the municipality or the County Board confirming that a resolution or ordinance
supporting the incentive has been requested. If the applicant is seeking to apply based on the
reoccupation of abandoned property and will be seeking a finding of “special circumstances”
from the municipality, in addition to obtaining a letter from the municipality confirming that a
resolution or ordinance supporting the incentive has been requested, the applicant must also
file a letter from the County Board confirming that a resolution validating a municipal finding of
special circumstances has been requested.
Should the municipality or the County Board, at a later date, deny the applicant’s request for a
resolution or ordinance, whether or not construction or re-occupancy has begun, the applicant will
be deemed ineligible for reclassification to Class 6b. Any information that is not known or any
supporting documents that are not available at the time of the initial filing must be submitted as a
supplement to the Application.
After the construction or re-occupancy has taken place, an applicant must also file an "Incentives
Appeal Form" requesting that the real estate be reclassified to Class 6b. At the time of filing the
appeal, an appeal fee of $100.00 must be paid. If a resolution from the municipality where the
property is located, or the Cook County Board of Commissioners if located in an unincorporated
area, was not filed with the Eligibility Application, the applicant must file a certified copy of the
resolution or ordinance supporting the incentive at this time. No final action on a request for
reclassification to Class 6b will be taken until an Appeal and an Eligibility Application, along with
the required documentation as described therein, are completed and filed with the Office of the
Assessor.
In addition, during the term of the incentive, the Class 6b recipient must file a triennial affidavit
attesting to the use of the property and the number of workers employed at the Class 6b site.
The Assessor will mail Class 6b recipients the affidavit forms at the time of their triennial
reassessments. The affidavit must be signed, notarized and returned to the Assessor within
three weeks. Failure to file the triennial affidavits within that time will result in the loss of the
incentive.

Time for Filing

The Eligibility Application along with the appropriate resolution or letter confirming that a
resolution has been requested must be filed with the Assessor prior to, but no earlier than one
year before, commencement of new construction (excluding demolition, if any) or substantial
rehabilitation. With respect to abandoned property, the eligibility application must be made to
the Assessor prior to the commencement of the reoccupation of the vacant and unused
property.

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Where reoccupation of "abandoned" property and subsequent substantial rehabilitation is
planned, a single Eligibility Application and resolution, ordinance, or letter confirming that a
resolution has been requested, may be filed for both situations, provided that the Application is
filed prior to the commencement of reoccupation and such rehabilitation.
To finalize the classification change, a "Real Estate Assessed Valuation Appeal" must be filed
after the construction or re-occupancy has taken place. In instances where a certified copy of an
ordinance or resolution expressly stating that the municipality or County Board supports and
consents to filing of a Class 6b Application has not yet been filed, it must be filed at this time. For
the purpose of certifying final assessments on a timely basis to the Board of Appeals, deadlines
for filing Appeals are established on a township basis. Check with the Office of the Assessor to
determine when the deadline occurs for a particular township.
The 6b classification may be renewed during the last year in which a property is entitled to a
10% assessment level or when the incentive is still applied at the 15% or 20% assessment
level, by filing a renewal application and a certified copy of a resolution or ordinance adopted
by the municipality in which the real estate is located, or by the County Board, if located in an
unincorporated area of Cook County, expressly stating that it supports and consents to the
renewal of the Class 6b incentive and that it has determined that the industrial use of the
property is necessary and beneficial to the local economy. The notice of intent to request
renewal will be forwarded by the Assessor’s Office to the Cook County Board. The owners
must notify the Assessor’s Office of their intent to request renewal at the time they request a
resolution or ordinance agreeing to the renewal from the municipality or County Board. The
number of renewal period requests is not limited.

Questions regarding Class 6b may be directed to the Development Incentives

Department of the Office of the Cook County Assessor, Room 301, 118 North Clark
Street, Chicago, Illinois 60602, (312) 603-7529.

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