Hoffman Estates to demolish old police station to make way for Audi dealership

The village of Hoffman Estates is moving forward with demolition of its former police station after village trustees approved a deal last Monday to sell the property to a Schaumburg Audi dealership.

Village manager James Norris said the buyer, operating as 1200 Gannon Drive LLC, is the same buyer that made a deal with the village in August 2010 to purchase the property for $2.65 million.

That agreement was rescinded by the village two months ago after the buyer, then using the name Hall Racing LLC, failed to secure financing for the proposed car dealership at the intersection of Golf Road and Cannon Drive.

Now, the agreement is back in place with one change — the village must pay to demolish the building, a service they have hired Albrecht Enterprises Inc. of Des Plaines to do for up to $150,265.

The village estimates it will receive about $4 million in sales taxes and about $450,000 in property taxes over the next 10 years from the dealership.

Norris said the company had told the village after the deal was rescinded that they hoped to come back in the future and that no one else had submitted a formal bid for the property.

The village also re-approved a program that will rebate the dealership up to $250,000 in sales tax over 10 years. To receive the money each year the company must generate at least $350,000 annually in sales tax.

Norris said 1200 Gannon Drive LLC has a 40-day inspection period during which it can cancel the agreement. If they don't, the closing on the purchase is expected to take place within two weeks of the end of the inspection period.

The dealership is planning to eventually leave its current location at 320 W. Golf Rd. and completely relocate to the Hoffman Estates property, Norris said.

The old police station has been vacant since 2010, when Hoffman Estates police moved into a new station at 411 W. Higgins Road.