City Receives Payment from Kraft Foods

On January 23, the City received a check for $209,720 from Kraft Foods. This check represents one in a series of annual payments that Kraft was obligated to make as the result of the settlement of a 1987 annexation lawsuit. The City negotiated the settlement for a continuing escalating payment (1.5% each year) based upon the 1987 real estate tax rate. The agreement has been beneficial, both for the City and Kraft.  The Kraft plant itself remains outside the City by agreement; however, it receives fire service through the City’s Fire Department. Since 1987, the City has received over $5.5 million. In 1987, the City agreed to provide 26% of the amount received to the Park District in recognition of the fact that the settlement agreement was based upon the combined City/Park District tax rate in 1987. The original Annexation Agreement with Kraft expired in 2007 but was renewed in 2008. The obligation to pay continues under both the Settlement Agreement and the Annexation Agreement.