Edward Don to Receive State and Village Tax Credits for Move

Edward Don & Company will receive $4.5 million in a state tax credit offered by the Illinois Department of Commerce and Economic Opportunity, in addition to from the . 

The foodservice equipment distributor got the go-ahead last month to start construction on a new corporate headquarters to be located along Woodward Avenue near I-55. It's the first phase of what will be Woodridge's Union Point Business Park. 

The $4.5 million DCEO investment package is over 10 years and contingent on the company meeting its investment and job numbers, according to a DCEO release. 

On the village side, of the sales tax Edward Don must pay as required by law, the village would retain just 25 percent for the first five sales tax years. Edward Don would keep the rest. 

After the first five sales tax years, the village and Edward Don each get 50 percent of the sales tax. 

The village will also give 100 percent of the utility tax generated by Edward Don back to the company up to $1 million. 

The move to Woodridge would not be possible without these credits, village officials said. 

The 75 percent credit back to Edward Don in sales tax is probably the highest the village has offered a business, according to Emily Rodman, senior planner for the village of Woodridge. 

While the village is offering 75 percent of sales tax back upfront, the company will keep 25 percent of its sales tax over the next 30 years, Rodman said. 

"The village anticipates that over the next 30 years, Edward Don will generate approximately $39 million in sales tax, utility tax and property tax revenue," Senior Planner Emily Rodman wrote in an e-mail.

"Of that $39 million, the village anticipates it will rebate Edward Don approximately $10 million, or 25 percent of the revenues generated."

The village has entered into such agreements in the past, according to village documents, for potentially large employers in the community that will generate significant tax revenue and commit to staying in Woodridge long-term. These agreements have ranged from 3 to 20 years. 

Edward Don's lease will begin on July 1, 2012, and expire on June 30, 2032. 

Edward Don & Company would receive an additional rebate of a portion of sales tax revenue for up to 5 years if the company chooses to extend its Woodridge lease for an additional 10 years, according to the agreement. 

Edward Don was also considering moving its corporate headquarters to Kenosha, WI, but "the Woodridge location was in closer proximity to its core customer base allowing the company to better meet its strategic objectives," according to the DCEO release.

The design of the corporate headquarters will increase efficiency and allow Edward Don to grow.

"By increasing the cube capacity, number of dock doors and optimizing the facility layout, the company will increase operational efficiency while enabling Edward Don to continue to serve all segments of the industry and grow its business," the release said. 

Both DCEO Director Warren Ribley and Gov. Pat Quinn made statements in the release: 

“We are committed to helping companies of all sizes compete and thrive in today’s economy,” said Director Ribley. “Edward Don is a great example of how a family-owned company with roots in Illinois has grown into a worldwide competitor, and we’re pleased that our investment is helping create a path to an equally successful future.”

“We are committed to showing businesses everything Illinois has to offer that will help their companies grow,” said Governor Pat Quinn. “We have a world-class workforce that is second to none, easy access to port and rail shipping, and we are continuing to invest in roads and bridges. Companies like Edward Don are taking notice and are helping us meet our goal of putting more people to work and growing our economy.”

You can read the full release here.