Joliet eyes tax incentive for new roofing supplier | The Herald-News – The Herald-News

JOLIET The city is looking at $300,000 in sales tax incentives to bring a roofing and building supplies company to town. A city council committee approved the incentive package after discussing whether it would give an advantage to a new company competing with roofing businesses already in Joliet.

The owners of the prospective Joliet location told city officials last week that Texas-based SRS Distribution wants to move to its 1806 Terry Drive property.

The site needs about $300,000 in improvements for drainage and other problems, said Tom Osterberger, a Joliet attorney who is part owner of the property with Gene Briscoe.

SRS would move into a 27,000-square-foot building on the site. Osterberger said that the improvements funded by the tax break are outside the building.

He said the company expects to do about $6 million in sales in its first year of business, as well as that it would pay sales taxes to the city.

The Joliet City Council Economic Development Committee on Thursday authorized staff to negotiate an incentive package for improvements of the property that would rebate half of the city sales taxes for seven years up to $300,000.

Councilman Terry Morris questioned whether the city was giving an incentive to attract a company that would compete with businesses already in the city.

Its not like this is new tax money. We have other suppliers for the roofers here, he said. Its not like this is a new product that were getting into Joliet.

Economic Development Director Steve Jones said the incentive would be used to improve the property but would not give SRS a pricing advantage.

Theyre not lowering the price of shingles because theyre getting money from the city, Jones said. If somebodys losing business in town, its because theyre not competing in the marketplace. Its not because the citys putting its thumb on the scale.

Morris joined other committee members in voting, 3-0, to direct Jones to develop an incentive agreement, which could come back to the city council for approval by June 6.

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