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Local

Kellogg's to expand Minooka site

County committee agress to six-year abatement plan

MINOOKA – It looks like Kellogg's will expand its footprint in Minooka beyond its current 1 million square foot building, with a little help from Grundy County. After looking for a new 1.5 million square foot building, the company decided to instead add a 500,000 square foot building near its existing structure, and will also get a break on its taxes on the new building.

At first, the company sought a new, bigger building.

"There were multiple sites in Grundy County in the running for this," said Nancy Norton, president and chief executive officers of Grundy County Economic Development, told the county tax committee on Wednesday. "They decided to stay where there were ... The county had said all along it wanted to be fair and equitable to all of the sites."

Kellogg's decided it could work by adding a second building near its existing facility on Minooka Road.

As an incentive, the county extended a deal to Kellogg's that, for six years, it would receive a 50 percent tax abatement on the new building. There will be no abatement for the existing building. As an incentive to stay in the facility longer, that sixth year abatement would actually be awarded after the 10th year, Norton said.

"During the negotiations there was discussion around how about they receive the 50 percent for five years, and they earn the sixth year that we will give them on the 10th year of their lease, if they're still here," Norton said. Earning the sixth year would also include meeting benchmarks including people employed and wages.

"At the end of the day we want jobs and we want them to stay," Norton said.

Grundy County Administrator George Gray said the claw back, that delayed sixth year rebate, should be tied to Kellogg's' commitment to the community. The county's normal agreement lasts five years.

"I think it's integral to distinguish this from your future petitions," Gray said. "We have an established business that has shown a long term commitment. Not only a passed commitment but a renewed commitment."

The committee voted to recommend the deal to the full county board, where it still needs to receive final approval.

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