2016 – The Year Elk Grove Became the National Destination for Business
With the largest consolidated Business Park in North America at nearly 6 square miles, Elk Grove Village was not satisfied with resting on its reputation as a business leader. Instead, over the past decade, Village elected officials chose to invest heavily to ensure the community thrives now and decades into the future. Today, the Village is reaping the benefits of that investment.
Overall, the Village is experiencing a surge of business development activity. The 2016 industrial vacancy rate stands at a mere 3.98%, down by over 65% from a high of 12.49% in 2010.
In fact, of all the Cook County municipalities located in the O’Hare Industrial Market, Elk Grove Village has the lowest industrial vacancy rate at only 3.98%. Moreover, the Village also has the highest absorption rate of over 275,000 square feet for 2016.
The Village’s comprehensive investment in a multitude of infrastructure improvements, administrative efforts to streamline permits and be business friendly, and the launch of the award winning “Makers Wanted” marketing campaign has elevated Elk Grove Village as the first choice for business investment in 2016.
Investment in Business: Laying the Foundation
Over the past 10 years, the Village has invested nearly $60 million in business park improvements. Those improvements include new street lights, street rehabilitation, water main replacements, sanitary sewer lining, storm sewer improvements, as well as new signage.
The Village made significant Business Park infrastructure improvements in 2016 including:
- Improvements to 2 miles of mainline and to 7 miles of secondary drainage channels in the business park to alleviate flooding;
- Over 4,500 feet of culvert replacements throughout the Village;
- 19.5 miles of sanitary sewer lining;
- Over 4 miles of Village road rehabilitation;
- 11 rail road spur crossing replacements;
- Acquiring a detention pond in the Business Park and implementing measures to reduce flooding;
- The construction of a full interchange at I-90 and Elmhurst Road; and,
- The Busse Dam modification aimed at mitigating storm water flow throughout the Village.
Business Developments in Elk Grove for 2016 -- A Strong Year:
- 121 businesses either moved or expanded within Elk Grove in 2016.
- Approximately 2.4 million square feet of new industrial space was occupied in 2016.
- Private sector construction investment totaled nearly $145 million in 2016.
- MC Machinery, the machine building division of the Japan based Mitsubishi Corporation, is building a state-of-the-art 124,000 square foot corporate office and showroom visible from Interstate 90 and relocating approximately 200 employees;
- The relocation of Creative Werks headquarters, a leader in innovative food packaging and package design, occupying over 245,000 square feet of space for their corporate offices and production operations and relocating up to 600 employees; and,
- The continued development of precision manufacturing and data centers totaling nearly 2 million square feet.
2017 Business Development is shaping up to exceed 2016
- In January 2017, the Village has already issued permits for $66.5 million in value for new construction coming in the spring.
- Redevelopment of industrial buildings was strong in 2016 and will be stronger in 2017. Over 175,982 square feet of industrial space is currently under construction with another 1.5 million square feet planned for construction starting in the spring of 2017.
- Modernization continues with the tear down and rebuild of five industrial buildings and the greenfield development of three new modern state-of-the-art facilities.
Upon reviewing the business improvements, Mayor Craig B. Johnson stated:
“The Village has taken bold steps over the last several years to invest in our community. We invested financially in our infrastructure, worked hard to become a business friendly destination, and marketed ourselves to precision manufacturing firms. Overall, we have worked diligently to become a national destination for business activity.
We made this long-term investment to create a win-win scenario for business and the Village. Businesses have at a great home with low taxes and the Village benefits from the tax revenues generated by the business community.
Our recipe for success was simple: During the Great Recession, while other communities were content to ride out market trends with little investment, Elk Grove chose to do much more and go beyond what was expected. We were willing to spend now for future investment. Now, the private sector has taken notice and responded with a wave of expansions, relocations, and new developments. It’s all evidenced in the abundant business activity taking place in Elk Grove Village.
The financial data speaks volumes. While the Village invested $60 million in the business community over the past decade, that investment has been returned heavily. The private sector invested nearly $145 million in 2016 alone. The Village’s investment has been recognized and rewarded by the business community many times over.”