The Joliet City Council on Tuesday will be the first taxing body to vote on a property tax abatement program for the manufacturing plant being set up by The Lion Electric Company.
The abatement program reduces the property tax bill on the future factory by half for five years.
The abatement on the city’s share of property taxes is expected to total $385,000 over five years, Joliet Economic Development Director Derek Conley told a council committee last week.
The city expects to continue to collect $77,000 a year in property tax revenue from the site during the abatement and $152,000 a year once the abatement ends. The city currently gets $1,463 a year in property tax revenue from the site.
The abatement is tied to Lion Electric projections that it will employ 1,418 workers at the factory in four years after production starts in late 2022.
“Lion Electric must meet those numbers to get the full abatement,” Conley said. “If they fall short, it is prorated down from there.”
Other taxing bodies being asked to approve the same abatement program are Will County, Troy School District and Minooka Community High School District.
The Joliet share of the abatement amounts to 0.2% of Lion Electric’s expected $120 million investment in the project, Conley said.
Canadian-based Lion Electric is building a manufacturing plant for electric buses and trucks with a capacity to produce 20,000 vehicles a year. The plant is going into a 906,517-square-foot building under construction at 3835 Youngs Road in Clarius Park.