Village Considers Issuing $3.8 Million in Bonds to Bring New Business to Town

If approved to receive up to $3.8 million in revenue bonds through the village, a new manufacturing company could bring 130 new jobs to .

Board trustees conducted a first reading at a regular board meeting Tuesday on a motion to issue the bonds to S3 Land LLC, a firm specializing in wire and steel forming and metal finishing, according to board documents. The business is looking to buy the building at 8550 W. 185th St., which was the former home of Virginia Tile-Avantile.

A necessary building remodeling involves a $5 million capital investment, trustees said, and the village can offer financing for up to $3.8 million of that cost through tax-exempt Industrial Revenue Bonds known as IRBs.

"No new construction is anticipated, but interior remodeling will be required to meet company needs," a village memo outlining the resolution request said. " … Because the bonds are issued by a governmental entity, the holder of the bonds may exclude the interest in the bonds from gross income for federal tax purposes."

A key advantage to the bonds for business owners are their lower-than-normal interest rates — as much as 25 percent less than prime, said Trustee David Seaman, who is also the chairman of the Finance and Economic Development Committee. S3 Land LLC has already been approved for financial help from the state of Illinois and Will County, he said.

"It's important to note that this does not subject the village to any liability … " Seaman said. "We are basically facilitating a new business to come to town … and acting as a conduit."

The village would act as a middleman to allow the company to secure a lower interest rate from the bank, he said. Past IRBs were issued to , and Heritage Tool and Manufacturing—both in 1997—and to Alpha Beta Press in 1998, according to board documents.

Be sure to check back in with Tinley Park Patch for more coverage on this issue.

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