HomeMy WebLinkAboutR-25-42VILLAGE OF DEERFIELD
RESOLUTION NO. 2025- R-25-42
A RESOLUTION APPROVING A BUILDING AND CONSTRUCTION FEE
EXEMPTION AND REBATE AGREEMENT WITH
FORTUNE BRANDS INNOVATIONS INC.
WHEREAS, the Village of Deerfield ("Village') is a home rule municipality in
accordance with Article VII, Section 6 of the Constitution of the State of Illinois of 1970; and
WHEREAS, Fortune Brands Innovations, Inc. ("Fortune'), currently maintains
corporate offices at 520 Lake Cook Road, Suite 300, Deerfield, Illinois ("Existing Offices'),
as well as other corporate offices throughout the country; and
WHEREAS, Fortune desires to consolidate a number of its U.S. offices, including the
Existing Offices, into a single global headquarters and has selected the property located at
One Horizon Way in the Village ("Property') as Fortune's global headquarters; and
WHEREAS, the Property is located in the Village's I-1 Office, Research and Restricted
Industrial zoning district and currently contains a three building corporate office complex,
parking structure, at grade parking, and other related site improvements; and
WHEREAS, Fortune is leasing a portion of the Property for its new global
headquarters, occupying approximately 350,000 square feet in two of the three towers on the
Property, along with related parking and other related site improvements ("Global
Headquarters'); and
WHEREAS, Fortune projects that the Global Headquarters will retain approximately
133 existing high paying corporate jobs that are currently housed in the Existing Offices in
the Village, while adding over 400 new jobs with an average wage of over $120,000 to the
Village by the end of 2027; and
WHEREAS, pursuant to Section 6-6 of "The Municipal Code of the Village of
Deerfield, Illinois, 1975", as amended ("Village Code'), the Village requires that any person
granted a building permit or demolition permit pay a fee to the Village in an amount set forth
in 6-79 of the Village Code ("Permit Fees'); and
WHEREAS, pursuant to Section 6-6 of the Village Code, the Village requires that any
person granted a building permit or a demolition permit pursuant to the Village Code pay an
infrastructure impact fee at the rate set forth in Section 6-79 of the Village Code ("Impact
Fees'); and
WHEREAS, to occupy the Global Headquarters, Fortune must make certain
improvements to the existing facilities on the Property and the improvements will require
building permits and demolition permits from the Village; and
WHEREAS, because the Global Headquarters will create substantial jobs in the
Village and potential increased tax revenue in the Village, Fortune and the Village desire to
4905-1708-8011, v. 2
work together to provide Fortune with a reduction in Permit Fees and Impact Fees pursuant
to an agreement ("Agreement'); and
WHEREAS, the Village has the power and authority to enter into the Agreement
pursuant to the home rule powers of the Village under Section 6, Article VII of the 1970
Constitution of the State of Illinois and other applicable authorities;
WHEREAS, the Mayor and Board of Trustees have determined that entering into the
Agreement will serve and be in the best interest of the Village and its residents;
NOW, THEREFORE, BE IT RESOLVED BY THE VILLAGE BOARD OF
DEERFIELD, LAKE AND COOK COUNTIES, ILLINOIS, as follows:
SECTION 1: RECITALS. The Village Board hereby adopts the foregoing recitals as
its findings, as if fully set forth herein.
SECTION 2: APPROVAL OF AGREEMENT. The Agreement by and between the
Village and Fortune is hereby approved in substantially the form attached to this Resolution
as Exhibit A, and in a final form and substance acceptable to the Village Manager and the
Village Attorney.
SECTION 3: AUTHORIZATION TO EXECUTE AGREEMENT. The Mayor and
the Village Clerk are hereby authorized and directed to execute and attest, on behalf of the
Village, the final Agreement upon receipt by the Village Clerk of at least one original copy of
the final Agreement executed by Fortune; provided, however, that if the executed copy of the
final Agreement is not received by the Village Clerk within 30 days after the effective date of
this Resolution, then this authority to execute and attest will, at the option of the Mayor and
Board of Trustees, be null and void.
SECTION 4: EFFECTIVE DATE. This Resolution shall be in full force and effect
from and after its passage and approval by two-thirds of the Village Board according to law.
[SIGNATURE PAGE FOLLOWS]
4905-1708-8011, v. 2
AYES: Benton, Berg, Goldstone, Greenberg, Jacoby, Oppenheim
NAYS: None
ABSTAIN: None
ABSENT: None
PASSED: July 7, 2025
APPROVED: July 21, 2025
RESOLUTION NO: R-25-42
Daniel C. Shapiro, Mayor
ATTEST:
Kent S. Street, Village 'lerk
4905-1708-8011, v. 2
EXHIBIT A
AGREEMENT
4905-1708-8011, v. 2
BUILDING AND CONSTRUCTION FEE EXEMPTION AND REBATE AGREEMENT
This Building and Construction Fee Exemption and Rebate Agreement ("Agreement'l is
dated this _ day of , 2025 ("Effective Date'l by and between the VILLAGE OF
DEERFIELD, an Illinois home rule municipal corporation, located at 850 Waukegan Road,
Deerfield, IL 60015 ("Village's, and FORTUNE BRANDS INNOVATIONS INC., a Delaware
corporation ("Lessee'). The Village and Lessee are jointly referred to herein as the "Parties."
RECITALS:
WHEREAS, Lessee currently maintains corporate offices at 520 Lake Cook Road, Suite
300, Deerfield, Illinois ("Existing Offices'), as well as other corporate offices throughout the
country; and
WHEREAS, Lessee desires to consolidate a number of its U.S. offices, including the
Existing Offices, into a single global headquarters and has selected the property located at One
Horizon Way, Deerfield, Illinois, legally described in Exhibit A attached hereto and incorporated
herein ("Property') as Lessee's global headquarters; and
WHEREAS, the Property is located in the Village's 1-1 Office, Research and Restricted
Industrial zoning district and currently contains a three tower corporate office complex, parking
structure, at grade parking, and other related site improvements; and
WHEREAS, Lessee is leasing a portion of the Property for its new global headquarters,
occupying approximately 350,000 square feet in two of the three towers on the Property, along
with related parking and other related site improvements ("Global Headquarters'); and
WHEREAS, Lessee projects that the Global Headquarters will retain approximately 133
existing high paying corporate jobs that are currently housed in the Existing Offices in the Village,
while adding over 400 new jobs with an average wage of over $120,000 to the Village by the end
of 2027; and
WHEREAS, pursuant to Section 6-6 of "The Municipal Code of the Village of Deerfield,
Illinois, 1975", as amended ("Village Code'), the Village requires that any person granted a
building permit or demolition permit pay a fee to the Village in an amount set forth in 6-79 of the
Village Code ("Permit Fees'); and
WHEREAS, pursuant to Section 6-6 of the Village Code, the Village requires that any
person granted a building permit or a demolition permit pursuant to the Village Code pay an
infrastructure impact fee at the rate set forth in Section 6-79 of the Village Code ("Impact Fees'J;
and
WHEREAS, to occupy the Global Headquarters, Lessee must make certain improvements
to the existing facilities on the Property and the improvements will require building permits and
demolition permits from the Village; and
WHEREAS, because the Global Headquarters will create substantial jobs in the Village
and potential increased tax revenue in the Village, Lessee and the Village desire to work together
to provide Lessee with a reduction in Permit Fees and Impact Fees as set forth herein; and
WHEREAS, the Mayor and Village Board have determined that this Agreement is
4930-2098-6935, v. 5
necessary and appropriate to provide for the needed improvements on the Property and the
operation of the Global Headquarters on the Property and for the related economic development
benefits that will result to the Village; and
WHEREAS, the Village has the power and authority to enter into this Agreement pursuant
to the home rule powers of the Village under Section 6, Article VII of the 1970 Constitution of the
State of Illinois and other applicable authorities;
NOW THEREFORE, in consideration of the premises set forth above, and the mutual
agreement hereinafter set forth below, it is hereby agreed by and between the Parties as follows:
SECTION 1. INCORPORATION OF RECITALS. The foregoing recitals are incorporated
into, and made part of, this Agreement as though they were fully set forth in this Section 1.
SECTION 2. BUILDING AND SITE IMPROVEMENTS. The building improvements set
forth in Exhibit B ('9mprovements'l, attached hereto and incorporated herein, are eligible for
the Exemption (defined below) and the Rebate (defined below) pursuant to the terms of this
Agreement. Any building improvements or site improvements to the Property not set forth in
Exhibit B are not eligible for the Exemption or the Rebate from the Village.
SECTION 3. PROOF OF TENANCY. Lessee represents that Lessee is a tenant of the
Property and is duly authorized to enter into this Agreement. Prior to the Village allowing any
Exemption (defined below) or Rebate (defined below), Lessee must submit a copy of fully
executed lease ("Lease'l for the Property to the Village.
SECTION 4. REPRESENTATIONS. Village has relied upon all information provided by
Lessee in this Agreement to support the Exemption (defined below) and the Rebate (defined
below). Any material misrepresentation related to the Global Headquarters provided by Lessee
shall, at the option of the Village, give rise to the Village's right to terminate this Agreement and
require Lessee to immediately pay to the Village any Permit Fees or Impact Fees amounts waived
or reduced by the Village pursuant to this Agreement. This repayment obligation will survive
termination of this Agreement.
SECTION 5. FEES AND CHARGES.
A. FEE ABEYANCE PERIOD. The Village shall charge the Lessee Permit Fees and
Impact Fees in connection with the construction of the Improvements based on the
amounts and formulas set forth in the Village Code on the Effective Date. The
Village shall not apply any increases to the Permit Fees or Impact Fees that may
be adopted by the Village after June 1, 2025, so long as all applications for
demolition permits and building permits, and any other applications required by the
Village for Lessee to occupy and operate the Global Headquarters, are received
by the Village within 36 months of the Effective Date ("Fee Abeyance Period').
B. EXEMPTION. Lessee shall be exempt from and shall not be required to pay any
Impact Fees for the Improvements for the Global Headquarters, as may otherwise
be required under Section 6-6 and Section 6-79 of the Village Code, provided that
the Improvements are complete and the Lessee obtains a final certificate of
occupancy for the Global Headquarters on the Property within 48 months after the
Effective Date ("Exemption'j.
2
4930-2098-6935, v. 5
SECTION 6. REBATE. The Village will provide Lessee with a reduction of or rebate for
Permit Fees incurred by Lessee within 48 months after March 1, 2025, calculated in the manner
set forth below, regardless of whether the Improvements are completed in a single phase or
multiple phases ("Rebate'):
A. "Construction Costs" means the total aggregate construction costs including
materials and third -party labor costs expended by Lessee on the Improvements.
B. For the first $6,000,000 in Construction Costs expended by Lessee on the
Improvements, the Village will allow the Exemption in accordance with Section
5(B) above, but there will be no reduction or rebate of the required Permit Fees.
C. For the portion of the Construction Costs expended by Lessee that exceeds
$6,000,000.00 and up to $10,000,000, the Village will allow the Exemption in
accordance with Section 5(B) above, and provide a 25 percent reduction on the
Permit Fees. The Permit Fee reduction provided pursuant to this subsection will
not apply to any costs charged to Lessee to reimburse the Village for third -party
fees and direct costs incurred by the Village in processing any demolition permit
application, building permit application, or other applications required by the
Village.
D. For the portion of the Construction Costs expended by Lessee that exceeds
$10,000,000.00, the Village will allow the Exemption in accordance with Section
5(13) above, and provide a 50 percent reduction on the Permit Fees. The Permit
Fee reduction provided pursuant to this subsection will not apply to any costs
charged to Lessee to reimburse the Village for third -party fees and direct costs
incurred by the Village in processing any demolition permit application, building
permit application, or other applications required by the Village.
If applicable, the Village may reduce the site plan engineering review fees required under Section
6-5 of the Village Code to equal only the Village's actual costs incurred in connection with the site
plan engineering review. The Village's actual costs may include any reasonable amounts charged
by third -parties retained by the Village to assist in site plan engineering review, as well as the
Village's staff time and other actual documented costs incurred in connection with the site plan
engineering review.
The Rebate shall apply to any Permit Fees charged by the Village for any demolition permit,
building permit, or other permit required by the Village after March 1, 2025. If Lessee paid Permit
Fees any time from March 1, 2025 until the Effective Date, then the Village shall retroactively
apply the Rebate and the Exemption set forth in Section 5(B) to any eligible Impact Fees or Permit
Fees paid by Lessee during such time and the Village shall apply such Rebate and/or Exemption
as a credit towards any future Permit Fees owed by Lessee.
In the event that a Rebate is provided pursuant to this Section 6, and Lessee does not obtain a
final of certificate of occupancy for all of the Improvements within 48 months after the Effective
Date, Lessee hereby agrees to (i) repay a proportionate share of any Rebate and Exemption
granted to Lessee by the Village for any such work that does not obtain a certificate of occupancy.
SECTION 7. LICENSES AND PERMITS.
A. Lessee acknowledges and agrees that: (i) Lessee is responsible for securing all
3
4930-2098-6935, v. 5
necessary licenses and permits for the proper and complete construction and
installation of the Improvements; and (ii) nothing in this Agreement obligates the
Village to issue any building permits or approvals to Lessee or Lessee's
contractors related to the Property or the Improvements.
B. Lessee may file, and the Village shall process, demolition permit applications in
advance of submission of any building permit application. Lessee may file, and the
Village shall process, building permit applications in phases or by floor if requested
by Lessee.
C. The Village will act in good faith to issue demolition permits and building permits
for the construction of the Improvements on the Property within 30 days following
the Village's receipt of a complete application for such permits.
SECTION 8. REPAIR OF DAMAGE. Lessee must repair any damage to Village
property, including any rights -of -way, that may be caused by, or occur in connection with, the
installation or maintenance of the Improvements.
SECTION 9. MAINTENANCE OF IMPROVEMENTS. Lessee acknowledges and agrees
that: (i) it must maintain all Improvements in a clean and first rate manner a for a period of no less
than five years from the date of the receipt of the Rebate; and (ii) the Village will not be obligated
to provide any maintenance on the Improvements.
SECTION 10. STATUS OF IMPROVEMENTS. Lessee acknowledges and agrees that,
for a period of five years following the receipt of the Rebate, Lessee shall maintain the
Improvements or make changes to the Improvements or the Property that further benefit the
Global Headquarters. Any work or changes to the Improvements or the Property during that five
year period that requires a demolition permit, building permit, or any other permit from the Village
must obtain the required approvals before any such work or changes can be commenced.
SECTION 11. VACATION OF PROPERTY. If Lessee vacates the Property, terminates
the Lease, amends the Lease to rent a materially smaller portion of the Property, assigns or in
any way transfers the lease or any portion thereof other than to an assignment or transfer to an
affiliate or as part of a sale or merger, or subleases more than 15% of the Property to another
entity within five years after receipt of the Rebate, Lessee must reimburse the Village for the
Rebate and Exemption based on the following schedule:
YEAR AFTER REBATE
Within 1 year
Between 1 and 2 years
Between 2 and 3 years
Between 3 and 4 years
Between 4 and 5 Years
PERCENTAGE OF REBATE AND EXEMPTION
LESSEE OWES THE VILLAGE
100%
80%
60%
40% _
20%
SECTION 12. CERTIFICATES OF OCCUPANCY. The Village shall conduct its
inspections for a certificate of occupancy within five business days after request by Lessee and
shall issue certificates of occupancy for the Global Headquarters within five business days after
completion of final inspections by all required governmental entities. The Village shall issue a
temporary certificate of occupancy for any building, unit, or floor of the Facility if it may be occupied
safely prior to completion of all improvements without endangering life or public welfare. The
n
4930-2098-6935, v. 5
Village shall issue individual certificates of occupancy on a unit -by -unit or floor -by -floor basis as
expeditiously as possible after request by Lessee.
SECTION 13. SPECIAL ASSESSMENT AND TAXATION. Notwithstanding the terms of
this Agreement, the Village shall not, without the prior written consent of Lessee, for a period of
48 months after the Effective Date:
A. Levy against the Property or any portion thereof, or personal property therein, any
special assessment or special tax that is solely against the Property or personal
property therein;
B. Undertake any improvements in, on, or for the benefit of the Property that would
result in the imposition of a special assessment or special tax levied solely against
the Property, or any portion thereof; or
C. Levy or impose additional taxes solely on the Property, in the manner provided by
law, for the provision of special services to the Property or for the payment of debt
incurred in order to provide special services.
SECTION 14. ECONOMIC DEVELOPMENT ASSISTANCE. In recognition of the jobs,
revenue, and other benefits that Lessee will bring to the State of Illinois, the County of Lake, and
the Village, it is anticipated that the State of Illinois and certain of its agencies and other units of
government may provide economic assistance to Lessee for the Improvements. The Village
agrees to cooperate with Lessee in applying for and administering any economic assistance
granted to Lessee for the Improvements, provided that the Village is not required to expend funds
or provide credit for such purposes.
SECTION 15. TERM AND TERMINATION.
A. This Agreement shall automatically terminate five years after the Effective Date.
B. This Agreement may be terminated at the Village's option by written notice to Lessee
upon the breach by Lessee of any of its obligations under this Agreement and Lessee
fails to cure such breach for thirty (30) days after notice to Lessee by the Village. In
the event that the Village terminates this Agreement pursuant to this Section, Lessee
must immediately pay to the Village any Rebates or Exemptions provided by the
Village to Lessee pursuant to this Agreement. This obligation survives termination of
this Agreement.
SECTION 16. INDEMNIFICATION. Lessee must, without regard to the availability or
unavailability of any insurance, either of the Village or of Lessee, indemnify, save harmless, and
defend the Village, and its officials, employees, agents, and attorneys against any and all lawsuits,
claims, demands, damages, liabilities, losses, and expenses, including reasonable attorneys' fees
and administrative expenses ("Claims'), to the extent such Claims arise, or may be alleged to
have arisen, out of the design or installation of the Improvements or any failure to satisfy the
representations and obligations of this Agreement, whether or not due to or claimed to be due in
whole or in part to the active, passive, or concurrent negligence or fault of Lessee, except to the
extent any Claims are caused solely by the negligence or willful misconduct of the Village. This
Section survives termination of this Agreement.
5
4930-2098-6935, v. 5
SECTION 17. GENERAL TERMS.
A. Village Not a Joint Venturer. The Village shall not, by executing this Agreement or
taking any action pursuant hereto or contemplated hereby, be deemed to be a partner or joint
venturer with Lessee, Lessee's contractors, or any other parties.
B. Compliance with Requirements of Law. Lessee shall give all notices, pay all fees
and taxes, and take all other action that may be necessary to accept the Exemption and the
Rebate and ensure that the Improvements are constructed, installed, and maintained in
accordance with and with all applicable statutes, ordinances, rules, and regulations.
C. Binding Effect. The terms of this Agreement shall be binding upon and shall inure
to the benefit of the Parties hereto and their successors, and assigns.
D. Waiver. No waiver of any provision of this Agreement may be deemed to or shall
constitute a waiver of any other provision of this Agreement, nor may any such waiver be deemed
to or shall constitute a continuing waiver unless otherwise expressly provided for in this
Agreement.
E. Rights Cumulative. Unless expressly provided to the contrary in this Agreement,
each and every one of the rights, remedies, and benefits provided by this Agreement are
cumulative and are not be exclusive of any other such rights, remedies, and benefits allowed by
law.
F. Notice. Any notice or communication required or permitted to be given under this
Agreement must be in writing and shall be delivered (i) personally, or (ii) by a reputable overnight
courier, or (iii) by certified mail, return receipt requested, and deposited in the U.S. Mail, postage
prepaid, or (iv) by electronic internet mail ("e-mail"). E-mail notices are deemed valid and received
by the addressee thereof when delivered by e-mail and (a) opened by the recipient on a business
day at the address set forth below, and (b) followed by delivery of actual notice in the manner
described in either (i), (ii) or (iii) above within three business days thereafter at the appropriate
address set forth below. Unless otherwise expressly provided in this Agreement, notices shall be
deemed received upon the earlier of (a) actual receipt; (b) one business day after deposit with an
overnight courier as evidenced by a receipt of deposit; or (c) three business days following deposit
in the U.S. mail, as evidenced by a return receipt. By notice complying with the requirements of
this Subsection, each Party shall have the right to change the address or the addressee, or both,
for all future notices and communications to such party, but no notice of a change of addressee
or address shall be effective until actually received.
Notices and communications to the Village must be addressed to, and delivered at, the
following address:
Village of Deerfield
850 Waukegan Road
Deerfield, IL 60015
Attention: Andrew Lichterman
E-mail: alichterman@deerfield.il.us
Notices and communications to Lessee must be addressed to, and delivered at, the
following address:
R
4930-2098-6935, v. 5
Fortune Brands Innovations, Inc.
One Horizon Way
Deerfield, IL 60013
Attention: General Counsel
Email: legal@fbin.com
G. Third Party Beneficiary. No claim as a third -party beneficiary under this Agreement
by any person, firm, or corporation other than Lessee may be made or be valid against the Village.
H. Provisions Severable. If any term, covenant, condition, or provision of this
Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the
remainder of this Agreement will remain in full force and effect and will in no way be affected,
impaired or invalidated.
Time. Time is of the essence in the performance of this Agreement.
J. Governing Laws. This Agreement will be interpreted according to the internal laws,
but not the conflict of laws rules, of the State of Illinois.
K. Entire Agreement. This Agreement constitutes the entire agreement between the
Parties and supersedes any and all previous or contemporaneous oral or written agreements and
negotiations between the Village and Lessee with respect to the Exemption and Rebates for the
Property for Lessee.
M. Counterparts.
each of which is deemed to
instrument.
This Agreement may be executed in any number of counterparts,
be an original, and all of which, taken together, constitute a single
[SIGNTAURE PAGE FOLLOWS]
4930-2098-6935, v. 5
7
IN WITNESS WHEREOF, the Parties have hereunto set their hands on the date first above
written.
ATTEST:
i
ATTEST
By:
Its:
VILLAGE OF DEERFIELD, an Illinois home
rule municipal corporation
By:
Daniel C. apiro
Its: Mayor
FORTUNE BRANDS INNOVATIONS, INC., a
Delaware corporation
By: -- -
Its:
4930-2098-6935, v. 5
N.
ACKNOWLEDGMENTS
STATE OF ILLINOIS )
) SS.
COUNTY OF LAKE )
This instrument was acknowledged before me on Tull 2021, by
Daniel C. 56 iro , the Mayor of the VILLAGE OF DEERFIELD, an Illinois municipal corporation, and by
Kehl 5. We4 , the Village Clerk of said municipal corporation.
Given under my hand and official seal this 11- day of Jvlv�—, 2021.
yy
Notary Public
My Commission expires: It J-17,02OFFICIAL SEAL5 DANIEL VAN DUSEN
NOTARY PUBLIC, STATE OF ILLINOIS
SEAL MY COMMISSION EXPIRES: 11/02/2025
STATE OF
) SS.
COUNTY OF
This instrument was acknowledged before me on 202_, by
and
Given under my hand and official seal this day of , 202_
Notary Public
My Commission expires:
SEAL
E
4930-2098-6935, v. 5
EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
LOT 1 IN THE FINAL PLAT OF SUBDIVISION OF TAKEDA PHARMACEUTICALS,
BEING A SUBDIVISION OF PART OF THE SOUTH HALF OF FRACTIONAL SECTION
31, TOWNSHIP 43 NORTH, RANGE 12, EAST OF THE THIRD PRINCIPAL MERIDIAN
ACCORDING TO THE PLAT THEREOF RECORDED AUGUST 13, 2007 AS DOCUMENT
NUMBER 6226756, EXCEPT THOSE PARTS DEDICATED FOR ROAD PURPOSES BY
DOCUMENTS 5871193, 6226755 AND 7591172, IN LAKE COUNTY, ILLINOIS.
PIN: 16-31-304-001-0000
Property Address: 1 Horizon Way, Deerfield, Illinois,
4932-8207-0869, v. 2
EXHIBIT B
Description of Improvements
The Global Headquarters improvements include interior renovations and remodeling to allow Lessee to
operate two towers (Building Z and Building N) on the Property as the Global Headquarters.
This work will include:
Interior renovations in Building Z and Building N, including lobby renovations, construction of new
offices, the addition of a bathroom, and other related interior renovation and remodeling work to
accommodate the Global Headquarters.
Exterior work includes the addition/construction of new signage identifying Fortune Brands Innovations,
Inc.
Lessee may make improvements in one or more phases over time. Future improvements may include an
innovation center where new products are designed and demonstrated.
4930-2098-6935, V. 5
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Fortune Brands Innovations is asking nearly 850, or about two-thirds of their
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Deerfield, Illinois - a move designed to unify their distributed workforce and
transform how the company operates. It's a rare, high -stakes case study in what
happens when talent acquisition truly becomes central to business strategy.
"We're really looking at our organization and our structure and getting it right
for the future, not just for what we need today, "said Kristin Papesh, Chief
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The company has been shifting away from a decentralized model for years. Now,
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From a Collection of Brands to One Operating
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While Fortune Brands owns well-known names like Moen, Master Lock, and
Fiberon, many of its businesses were acquired, and its corporate structure has
historically been a patchwork. Offices were scattered across Ohio, Wisconsin, and
other regions, with each brand largely operating with its own culture and
leadership.
That began to shift as the company worked to evolve from a holding company and
into a true operating company.
Now, with nearly 850 employees asked to relocate to a centralized headquarters,
the company is taking the next step. The move is being executed in two phases -
half this year, half in 2026 - with full consolidation expected by early 2027.
With many employees opting not to relocate, the talent acquisition team of about a
dozen is working at full tilt to fill hundreds of roles quickly.
Fortune Brands has set up what Papesh calls a "command center" to manage the
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TA Moves to the Forefront
To handle the scale and complexity of the transformation, Papesh brought in Joel
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new leadership role on my HR leadership team, "she said. "1 really wanted this
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well."
The TA team now includes a mix of full-time and contract recruiters, some of
whom will continue to work remotely.
The Culture Challenge
"Until about a year ago Moen had their culture and Master Lock had their
culture and Therma-Tru had their culture,"Papesh said. 'As part of our
evolution a couple of years ago we brought the whole company together in
one operating model. The next phase was... to bring to life 'What does it mean
to be part of this Fortune Brands organization?"'
The company defined a new purpose - "we elevate every life by transforming
spaces into havens," and launched a set of shared values that were rolled out
across all 12,000 employees. That cultural alignment is now being embedded into
onboarding and hiring processes.
A Hybrid Return -To -Office Model
Even with a centralized HQ, the company isn't returning to five-day office work.
Instead, they've formalized a hybrid model with set in -office days: Tuesday
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Inside Fortune Brands' Talent -Led Transformation I ERE
through Thursday.
Papesh noted that fixed in -office days have helped reinforce collaboration and
consistency: "That piece isn't flexible. So, you really do end up with everybody in
office at the same time and you really see the difference in how folks are working."
Speed Over Gradualism
Why move everyone now instead of letting relocation happen slowly over time?
"When you looked at our attrition rate it would [have taken] us five to eight
years, "Papesh explained. "Eight years is a lifetime in business, " she added. "Is
that really going to get us where we need to go?"
Instead, the company opted for a faster approach: enough to maintain business
continuity while moving quickly into the new headquarters.
What's at Stake
When asked about the biggest challenge in the transition, Papesh didn't hesitate.
"Business continuity is the biggest challenge, " she said. 'But we're seeing the
traction we're getting on the hiring side and everyone has worked through their
business continuity plans. I think we're in a good space in terms of being able
to mitigate that."
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7/3/25, 10:17 AM
Inside Fortune Brands' Talent -Led Transformation I ERE
Fortune Brands is betting that a unified location, cohesive culture, and refreshed
talent strategy will improve operations, but it's not automatic — the size and pace
of the change leave little margin for error.
"This to me is so exciting to show how talent and talent acquisition can really
be at the heart of a company's longer term strategy,"Papesh said. "You don't
often get that into the TA organization."
u
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https://www.ere.net/articies/inside-fortune-brands-talent-led-transformation 6/8