Marc Schulman, the president of Eli's Cheesecake Co., which was founded by his father. (DNAinfo/Heather Cherone)
DUNNING — Eli's Cheesecake Co. will use a $705,000 break on its Illinois taxes to expand its Dunning facility and add 25 jobs, company officials said Monday.
The tax break for Eli's — a Windy City institution for its mouth-watering sweet treats — was included in $100 million worth tax breaks given the green light by Gov. Bruce Rauner days after he stopped millions of dollars in funding for social service agencies and park projects, prompting an outcry.
Marc Schulman, whose father, Eli, founded the company in 1980, said the tax credit was critical if the company is "to stay in Chicago and Illinois."
The tax credit will keep 110 jobs in Illinois and create more than two dozen new positions at an average wage of $21,000, according to state records. The company has 230 employees, Schulman said.
The tax breaks — part of the state's Economic Development for a Growing Economy Program — were approved by former Gov. Pat Quinn. Rauner put them on hold as part of his freeze of "nonessential" spending in an attempt to deal with what he called the state's financial crisis.
Other companies getting tax credits include eBay, CapitalOne, CDW and SAC Wireless.
Eli's Cheesecake World, 6701 W. Forest Preserve Drive, features a cafe, offices and bakery where every flavor of cheesecake imaginable is created. Schulman said company officials have been thinking about expanding the facility, which was built in 1996, for some time.
Heather Cherone says the tax break is a polarizing issue:
Bakers at work at Eli's Cheesecake World. (DNAinfo/Heather Cherone)
"We compete with companies around the United States and around the world and we love being here in Chicago in the Dunning neighborhood," said Schulman, the president of the company. "This will be a huge investment for us and we are grateful for the state supporting us."
Eli's plans call for a 40,000-square-foot addition, that will include processing space, storage, offices, a research and development center as well as an innovation center, Schulman said.
The addition will be built next to the current facility on land the company already owns, Schulman said.
A spokeswoman for Rauner said because the tax breaks will have no impact on this year's budget, they were allowed to go through.
Aviva Bowen, a spokeswoman for the Illinois Federation of Teachers, called Rauner's decision to approve tax credits for corporations while suspending $26 million in funding for social service agencies and $108 million for park projects — including the Bloomingdale Trail — "beyond the pale."
"Cutting funding for autism, homelessness, parks and after-school programs before asking the most wealthy to chip in a dime is completely out of touch with what Illinois wants or deserves," Bowen said.
Schulman's cheesecakes are beloved by some of the most famous Chicagoans — President Barack Obama celebrated his Second Inaugural with a star-spangled 500-pound Eli's Cheesecake, and Mayor Rahm Emanuel made news last year when his campaign finance reports revealed he sent contributors and friends $50,000 worth of the creamy pies.
Schulman has long advocated for an agricultural high school to be built on largely vacant property near the cheesecake firm's headquarters.
Schulman organizes a yearly job shadowing program for students at Chicago High School for Agricultural Sciences in Mount Greenwood, and his employees frequently volunteer and contribute to the nearby Sunshine Activity Center, which helps developmentally disabled adults.
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