The McHenry Township Board is scheduled to meet Thursday to discuss the possible abatement of property taxes for a manufacturing company.
McHenry-based Jessup Manufacturing has planned a $6.3 million expansion and is seeking a tax incentive deal with the city of McHenry and other taxing bodies in the area, including the township, McHenry Township Permanent Hard Road Fund and the McHenry Township Road District Fund, according to township documents.
The item was presented to the McHenry City Council in May and now is making its rounds to other taxing bodies in the area. The council has not officially approved the deal.
The 50,200-square-foot facility at 2815 W. Route 120 employs 65 people. The proposed expansion would add 40,000 square feet and another 15 jobs, according to township documents.
The company is seeking an abatement of taxes the expansion is likely to generate. Jessup paid $74,828 in property taxes in 2018, and the expansion is projected to increase its bill by $117,558.
The company wants to pay the established base – $74,828 – and have taxing bodies abate any property tax increase for five years, according to township documents.
McHenry Township’s portion of the abatement, based on the estimated increase, would be $1,252, and the road district’s portion would be $2,446, according to city documents.
The McHenry Township Board will meet at 7 p.m. Thursday at the township hall, 3703 N. Richmond Road, Johnsburg.