An Illinois rule restricting the development of non-sales-tax-generating businesses, like outpatient surgery centers, changed to operate on a case-by-case basis after a village council meeting July 16 in Palatine, Ill., the Journal & Topics reported.
Here’s what you need to know:
1. The vote came after a proposal to build a new Des Plaines-based Illinois Bone & Joint Institute location in a Palatine, Ill-based mixed-use building.
2. The building was constructed with $5.6 million in tax increment financing funds, with an agreement to only allow sales-tax generating businesses to lease space.
3. Because medical offices do not generate sales taxes, the practice would otherwise not be allowed.
4. Javin Properties, the building’s current owner, agreed to cap its non-sales-tax use at 55 percent, which is enough to accommodate the Illinois Bone & Joint Institute.
5. With the rule changed, the village council is expected to consider the Illinois Bone & Joint Institute’s application for space sometime in August.