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With development deals agreed upon, two significant developments — Ashley Capital and Grand Appliance — are coming to Sturtevant in the near future.
For years, Ashley Capital has developed industrial buildings for a business park in Sturtevant. Now the company plans to build a new 438,000 sq-ft building at the west end of Enterprise Business Park, on Highways H and 11.
Grand Appliance, a home appliance company operating in Zion Illinois, is moving its headquarters to the village. Both recently finalized development agreements with the Village Board.
Using future funds collected from a newly set up tax incremental finance (TIF) district, the Village has agreed to nudge the developments along with financial incentives.
A TIF district is a development tool municipalities can use to attract business. The way it works is that a financing district is created and a base value of that district is established by the taxing jurisdictions. The increased value of the property is still charged at the base rate, but the district uses the increased tax revenue to pay for the infrastructure projects.
For Ashley capital, that financial incentive comes in the form of annual payments of $70,000 from the village to the firm. Payments will occur for ten years, beginning when the building reaches its mandatory minimum value of $10 million.
Though, the building has the potential to reach a value of $14.5 million.
The new building doesn’t have a tenant yet, though Ashley is making proposals on the property now, said Gary Rosencranz, a regional vice president for acquisitions and leasing.
Grand Appliance’s new headquarters in Sturtevant will bring a $7.2 million in construction for the building at the southeast corner of Hwy H and Enterprise Way. It plans to relocate 120 jobs to the village, with another 22 added over three years.
“We think it’s a great opportunity,” said CEO Mark Reckling. “Good opportunity for growth here.”
The appliance company is the latest firm to relocate from Illinois just north of the border. Small municipalities all over southeastern Wisconsin have continued to incentivize development of large tracts of land with eyes set on future tax revenue.
With 20 stores across the Midwest, Vice President of Operations Jesse Moffitt said the new location in Sturtevant will be optimum because of it’s proximity to the interstate, its position as a halfway point between stores in Wisconsin and Illinois and the local talent pool.
To incentivize construction, the village has agreed to give Grand Appliance an annual payment equal to 50 percent of property taxes for the 137,000 sq-ft facility. These payments will last eight years and won’t exceed, in total, $450,000.
The village expects to make the first payment in 2018.
Business being handled in five buildings will be consolidated to the one in Sturtevant, said Reckling.
“Our company is expanding quite a bit in Illinois and Wisconsin right now,” Reckling said.