Belleville to see expansion of tool and die plant, demolition of historic bakery
Editor’s note: Because of incorrect information provided to the BND, this story has been updated to clarify the amount of financial incentives going to Chelar Tool & Die. The company will receive $53,000 to $58,000 in property tax rebates from the city of Belleville over five years.
Belleville City Council has entered into development agreements that will lead to big changes on two city blocks.
One involves a $4.5 million expansion of the Chelar Tool & Die manufacturing plant. The other involves demolition of a home and former bakery building to increase parking space for BelleVegas Bingo hall.
Under the first agreement, Chelar will build a 15,000-square-foot manufacturing facility at 1300 E. A Street, next to its current 50,000-square-foot complex on Florida Avenue, east of downtown.
“This will allow us to expand our capacity,” said President Jared Katt. “We currently have three presses, and we would like to add a fourth. It will also give us more shipping and receiving space.”
The company didn’t ask for any upfront tax-increment-financing (TIF) fund payments, as many developers do, according to Cliff Cross, economic development, planning and zoning director.
The city will provide financial incentives in the form of $53,000 to $58,000 in rebates on a percentage of Chelar’s expected increases in property values/taxes over five years.
“It’s a good investment for the city of Belleville,” Cross said.
Among the agreement’s details:
- Chelar will make its $4.5 million investment in the form of construction costs and capital-equipment purchases by the end of 2023.
- The company will retain 73 full-time-equivalent jobs.
- The company will create three full-time-equivalent jobs within the first year of operation and another three within the second year.
- The company will operate at that location for a minimum of 10 years.
The city will provide rebates to Chelar amounting to 70% on property tax increases the first year, 65% the second year, 60% the third year, 55% the fourth year and 50% the fifth year.
Buildings described as ‘derelict’
The city made the second development agreement with an entity identified as “K&D Realty,” represented by Denny Tribout. He’s the owner of BelleVegas Bingo hall. It occupies the former Tribout’s party store building on South Illinois Street.
Under that agreement:
- The city will sell K&D a vacant lot at 504 S. First St. for $1. (Its appraised value was $14,412 in 2021, according to St. Clair County records.)
- The company will spend about $67,000 to demolish two buildings Tribout already owns and pave over those properties, as well as the vacant lot being turned over by the city.
The city will allow K&D to pave over a section of the alley between West Adams and West Monroe streets at a cost of about $20,000.
The company will complete the project in 24 months or face penalty.
The city will give K&D $20,000 in TIF funds.
The company will retain nine full-time-equivalent jobs.
- The company will create two full-time-equivalent jobs within a year.
- The company will operate in that location for a minimum of 10 years.
“When it’s all said and done, I think (this plan) would give us 106 parking spots,” Tribout said.
BelleVegas now has about 40 parking spots. The bingo hall operates on Monday, Wednesday and Thursday evenings.
The two buildings slated for demolition on the block include a home and a brick storefront at 22 W. Monroe St. that was built in 1937 as Schlesinger’s grocery store, according to Belleville Historical Society.
The storefront later served as Zink’s Market, Raetz Bakery and most recently B&B Antiques. Its facade is distinguished by its textured brick and yellow tiles.
The city of Belleville agreement describes the two buildings as “derelict.”
“You wouldn’t want to go inside the door (of the storefront),” Tribout said. “You’d fall through the floor.”
Belleville aldermen approved both development agreements at their meeting Monday night. They also approved a site plan for a new Discount Tire store at Belleville Crossing shopping center.
Plans call for an 8,028-square-foot store with five drive-thru lanes and 34 parking spaces on a 1.39-acre tract.
“It’s a national chain, and (this store is) their new model,” Cross said. “There isn’t even one of these in the United States yet. They’re starting to build the first two. We’re No. 3.”
Chelar designs and manufactures dies for cutting or molding metals for tools. It mainly serves the appliance, electrical and heating, ventilation and air-conditioning industries.
“We do work for companies all over the country,” Katt said.
Chelar has steadily expanded since 1962, when it was founded in Belleville by Charles Flynt, Elmer Katt and and Art Engel, according to its online history. Flynt and Engel died in 1974. Katt died in 1997.
Elmer Katt’s son, Malcolm, served as company president until his death in 2012. Today, his sons, Bryan and Jared, operate the business.
This story was originally published September 20, 2022 at 9:16 AM.
