Property tax incentives approved today by City Council will support the construction of two new air cargo facilities by Aero Chicago LLC at O’Hare International Airport.
One Class 6(b) incentive will facilitate the development of the first phase of the Northeast International Cargo Center. Planned for a 65-acre site on the northeast side of the airport, the $78 million project will create 480,000 square feet of warehouse space, office facilities, and an aircraft parking ramp. Aero Chicago will save an estimated $5.2 million in property taxes over the next 12 years through the incentive. The first tenant, Alliance Ground International, has leased 108,000 square feet of space in the facility for its 150-person airline cargo handling operations. Later phases will include up to 340,000 square feet of additional space.
The other Class 6(b) property tax incentive will support construction of a 491,000-square-foot DHL Global Forwarding Center. Under construction on a 24-acre parcel at the north end of the airport, the $35 million project includes office and warehouse space for containerized cargo and temperature-controlled pharmaceutical and biotech products. Planned as the largest DHL facility of its kind in the nation, the facility includes a 500-employee call center that will relocate from the suburbs. Total tax savings for Aero O’Hare over the next 12 years are estimated at $5.4 million.
The Class 6(b) tax classification is intended to encourage the redevelopment of industrial properties by lowering the tax rate for eligible projects over a 12-year period.
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