The Homewood Village Board approved the Cook County Class 8 incentive for Caton Commercial Real Estate Group at the Sept. 9 meeting. 

Caton purchased the commercial strip center, Park West Plaza, at 3003-3025 183rd St., said Angela Mesaros, director of Economic and Community Development. 

The village had approved the redevelopment agreement with Caton in July. As part of that agreement, the village had agreed to support the Class 8 incentive, Mesaros said. 

Under the incentive, qualifying commercial properties are taxed at 10% of market value for the first decade, then 15% in year 11, and 20% in year 12. Property owners can request a renewal in the final year, as long as the property still qualifies. Renewal requires board approval through a resolution, Mesaros said. 

The incentive helps ease the tax burden placed by the Cook County tax system. The property in this case is located in Rich Township, which is one of the five townships that qualifies for automatic certification, she said. 

According to Mesaros, since a portion (66%) of the property has been vacant for 24 consecutive months, only the vacant units will qualify under the incentive. 

Caton proposed extensive renovations to the property by improving common areas, such as painting the drywall of the current vacant units white as well as finished ceilings and basic lighting, plus HVAC (heating, ventilation, and air conditioning) distribution, she said. 

The renovations of the center will improve the area of west 183rd St. and will fill the vacant units with new tenants, while also returning the area to the tax rolls, Mesaros said. 

Due to the Class 8, the owner’s property taxes will be reduced from $103,816 to $76,501 annually, which saves $27,315 a year, she said.