Arlington Hts.' loss is Rolling Meadows' gain.(News)

With every town's budget stretched tight these days, municipalities pay attention when even a small business moves in or out of town. 

It came to light last week that LC Mold Inc., which employs 35 people, plans to move from Arlington Heights to Rolling Meadows in May. The 24,000-square-foot building at 3640 Edison Place, Rolling Meadows, has been vacant for four years, and the company plans to spend $250,000 rehabilitating it, according to documents filed with the city. 

The Rolling Meadows City Council voted Tuesday to support the company's application for a tax assessment incentive known as a Class 6b. The assessment would be 10 percent of the building's value for 10 years, then rise over the next two years, according to documents the company filed. 

Cook County has final approval of the application. It is not known when that decision is expected. 

The company, which designs and makes molds for the automotive and medical industries, is moving because it needs a larger building, said Zachary A. Kafitz, a Chicago attorney representing the company. 

LC Mold hopes to add at least 10 employees within two years, the documents said. It has been at its current 16,000-square-foot space, at 760 Algonquin Road in Arlington Heights, for 17 years. The owner, Leo Danushevsky, could not be reached for comment. 

Even a company that does not pay sales tax provides benefits to the community, including the fact that the value of the building and the property tax paid increase when a building is no longer vacant, Rolling Meadows Mayor Ken Nelson said. 

"The employees eat in our restaurants and perhaps shop in town and buy gas at our gas stations," said Nelson. "You need traffic for local businesses." 

Some companies also stage meetings that use local hotels and restaurants, said Charles Witherington-Perkins, director of Arlington Heights planning and community development.
Kafitz said he does not know what the taxes are on the Arlington Heights property, where the company is a renter. The estimated 2009 taxes for the Rolling Meadows site are $90,000, he said, but that is based on a market value of $1.7 million. According to the documents filed with the city, the sales price is $680,000. 

The company estimates that with the 6b incentive the total taxes over the 12 years will be $573,000, compared with $384,000 if the site is given relief as a vacant building.