The details of a proposed enterprise zone agreement involving the future site of a two-story, 30,000-square-foot medical ambulatory care building in the Urbana Commons Planned Unit Development on the east side of Urbana were presented to City Council during its Tuesday meeting.
The measure, introduced in the form of a resolution that underwent a first reading, seeks council’s approval of an enterprise zone agreement involving the city, Urbana MOB LLC (property owner) and Memorial Health of Union County (lessee).
Under the proposed agreement, Urbana MOB would receive a tax exemption of 75 percent for 10 years from the real property taxes resulting from real property improvements to the proposed construction site at the northwest corner of the East U.S. Route 36 and North Dugan Road intersection.
In its joint enterprise zone application to the city, Urbana MOB and Memorial Health estimated the total project investment to be between $9,993,000 and $10,703,000.
“Real estate taxes being paid right now on the agricultural land (proposed construction site) is $217.57 per half year,” said Marcia Bailey, economic development director for the Champaign Economic Partnership. “With this application, the private entity, Urbana MOB, would be responsible for real estate taxes. If it’s under the ownership of the hospital, there is no real estate taxes. Their taxes are exempt.
“So, with this agreement, we would have real estate taxes coming into the county, which we don’t have right at this time,” she added.