What's Happening?
The Homewood Village Board has approved a Class 8 property tax relief incentive for two local businesses, Hibbing Hotdogs and Old Fashion Donuts at 18123 Harwood Ave., and Berkot’s Super Foods at 2345 W. 183rd St. This decision, made during the May 26
meeting, aims to alleviate the tax burden on these commercial properties by assessing them at a reduced rate of 10% for the first decade, with the possibility of renewal for another ten years. The property at 18123 Harwood Ave., previously vacant for two decades, has seen significant investment from Joe Peters of JWP Interpris Corporation, who has spent approximately $790,000 on improvements. These enhancements include upgrades to HVAC, plumbing, and electrical systems, as well as the installation of a commercial kitchen and restaurant interior. The tax incentive reduces the annual property tax from $46,500 to $18,600. Similarly, Berkot’s Super Foods, acquired by Ace Group Inc., plans to invest $2.65 million in renovations to enhance store operations and competitiveness.
Why It's Important?
The approval of these tax incentives is significant as it supports local economic development by encouraging investment in previously underutilized properties. By reducing the tax burden, the initiative aims to stimulate business growth, create jobs, and increase sales tax revenue for the village. The redevelopment of these properties aligns with Homewood's Downtown Transit-Oriented Development Plan, which seeks to expand local business activities. For Berkot’s Super Foods, the projected increase in annual sales from $19 million in 2025 to $23 million by 2030 highlights the potential economic impact. This move also reflects a strategic approach by the village to maintain essential services like grocery stores, which are vital for community sustainability.
What's Next?
The next steps involve the continued implementation of the planned improvements by both businesses. For Hibbing Hotdogs and Old Fashion Donuts, the focus will be on completing the interior and exterior upgrades to fully operationalize the restaurants. Berkot’s Super Foods will proceed with its extensive renovation plans to enhance its competitiveness and operational efficiency. The village will likely monitor the progress and impact of these investments on local economic activity. Additionally, the success of these incentives could set a precedent for future applications, encouraging more businesses to invest in the area under similar tax relief programs.
