In exchange for economic development and creation of new jobs, the Joliet City Council on Tuesday approved a property tax abatement agreement with Hyundai Translead, Inc., a subsidiary of Hyundai Motor Company.
Headquartered in San Diego, Hyundai Translead is a transportation and logistics equipment manufacturer planning to establish a new manufacturing plant in the United States.
Per the agreement, Hyundai intends to lease property at 3835 Youngs Road, Joliet, a 905,517-square-foot building; and expects to make an additional investment of $148 million in new building improvements, machinery, equipment, other capital and property improvements.
Additionally, city officials said Hyundai will employ 113 employees in the first year; 1,001 employees in the second year; and 177 employees in the third year. A total of 1,291 employees will be working at the manufacturing facility at full capacity.
In exchange for the investment and creation of new jobs, the City of Joliet and Hyundai have agreed to a five-year, 50 percent property tax abatement as an incentive to operate the facility in the community.
Matt Bohega of Joliet welcomes Hyundai to the community and believes the tax abatement is a small price to pay.
“Hyundai is a great company and this spells nothing but good things for Joliet,” he said. “Good paying jobs are just what we need here.”
However, another resident said during the public comment portion of the meeting “it is unfair when residents cannot get breaks on taxes they pay when businesses get discounts.”
Councilman Larry Hug, District 1, said in today’s economy, a five-year, 50 percent tax abatement doesn’t amount to much.
“If we don’t give a tax abatement, there is no development,” said Hug. “This is a minimum abatement.”
Besides the Hyundai agreement, the Joliet City Council Tuesday approved a contract with Allied Universal Security Services for $80,516.37 to provide security detail at City Hall.
A total of 42.50 hours of work detail will be provided per week, with 2.50 hours charged overtime.
Officials said there are not enough police officers on force to provide the security detail as they are needed elsewhere in Joliet to protect residents. Once staff is back to normal, officials said the contract with Allied Universal Security will no longer be needed.
In other city news Tuesday, the council deferred action on the ability of the City Manager to initiate recruitment and make appointments prior to an employee’s separation that will allow for training and transition, thereby reducing disruption of work performed.
“The City Council further finds that authorizing the City Manager to appoint temporary workers for short-term operational needs will enhance flexibility and responsiveness in city operations,” according to the resolution. “Upon receipt of an eligible irrevocable written resignation or retirement notice from an employee, the City Manager may initiate recruitment, examination, and selection processes for the affected position.”
“The City Manager may make an appointment to such position effective prior to the separation date for the purpose of training and transition, provided that funding is available in the fiscal year budget to fund the overlap period; the overlap period does not exceed 180 days unless approved by the City Council; and the appointment complies with applicable personnel policies,” the resolution stated.
City Manager Beth Beatty said at the request of councilwoman-at-large Jan Quillman, who raised questions about the resolution, the document will be sent to the council’s legislative committee for further discussion before it goes up for vote.
