Dec. 02--Medline Industries stands to receive millions of dollars in tax incentives from Illinois and the village of Mundelein to expand its presence in Lake County.
Gov. Pat Quinn's office said Tuesday that the state will give the Mundelein-based private manufacturer and distributor of health care supplies a credit for $17.5 million against its future state income tax liability. In October, Mundelein officials said they offered the company a rebate up to $1.8 million in property taxes over 15 years.
The company employs about 1,600 on its 53-acre campus, which includes offices, a distribution center and a manufacturing facility.
"We are evaluating options at our current Mundelein location and in Lake County," spokeswoman Vivika Panagiotakakos said in an email. "While we are targeting the end of 2016 for any new space, no decisions have been made yet with respect to the size or location."
To receive the state and village incentives, Medline has pledged a variety of investments. Some of the pledges may overlap, state officials said.
For the state incentive, Medline will:
--Spend $60 million over the next five years expanding its Illinois presence.
--Invest in its headquarters campus and a new facility in Lake County.
--Add 200 jobs over the next five years; 100 in two years and another 100 within five years.
--Retain its existing 1,600 jobs.
--Consider expanding its warehousing operations "in or near" Sauget.
For the village incentive, Medline would:
--Spend $40 million on a new building on its corporate campus.
--Add 100 jobs
The new structure on its campus would range from 100,000 to 130,000 square feet with a value of $25 million to $30 million, according to a Tribune report in October. Furnishings and equipment would account for the remaining $10 million.
Medline earlier this year closed a satellite office in Kankakee that helped it reduce its sales taxes.
Its decision was prompted by recent changes in the state tax code that attempt to eliminate what government officials describe as a loophole exploited by dozens of companies with headquarters in Illinois and out of state, according to correspondence the Tribune obtained under the Freedom of Information Act.
Such tax strategies diverted hundreds of millions of taxes from Chicago and its suburbs, according to court documents.
ehirst@tribpub.com
Twitter @ellenjeanhirst
