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updated: 2/11/2014 5:19 AM

Volkswagen wants to open at Elgin auto mall

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  • A Volkswagen dealer may be coming to Elgin's auto mall.

    A Volkswagen dealer may be coming to Elgin's auto mall.
    Daily Herald file photo


More than six years after its approval, the auto mall on Randall Road and I-90 in Elgin may have its second tenant.

A Volkswagen dealership is set to close on property Friday, pending approval of certain zoning changes by the Elgin City Council on Wednesday, Corporation Counsel William Cogley said.

The only tenant in the 10-lot auto mall is McGrath Honda, which opened in late 2009.

Representatives of property owner Location Finders International of Mokena did not return a call seeking comment. The specific name of the Volkswagen dealership was not disclosed. It would occupy half a lot on the north side of Auto Mall Drive, Cogley said.

That lot currently can't have access onto Auto Mall Drive within 500 feet of Randall Road, as per restrictions imposed by the Kane County Department of Transportation.

The Volkswagen dealership wants right-in and right-out access approximately 310 feet west of Randall Road, while a full access entrance will be further west on Auto Mall Drive, Cogley said. The county already agreed to the reduced distance, Cogley said.

The new dealership would see a 25 percent sales tax rebate until 2029, said Assistant City Manager Rick Kozal.

The auto mall has been in foreclosure proceedings in Kane County since a lawsuit was filed in November by U.S. Bank National Association against Randall 90 LLC, Michael H. Rose and others. A hearing for summary judgment is set for April 17.

Also, another dealership is also interested in coming to the Elgin auto mall, Councilman Terry Gavin said.

When the auto mall was approved in September 2007, city council members agreed to rebate half the sales tax revenue it generated over the next 20 years. Sales tax-sharing agreements are common for auto dealerships.

"I'm sure nobody is going to be displeased, because frankly we need the revenue and we need more tenants at the auto mall," Gavin said.

Woody Buick GMC on Route 19 closed in June 2013, while Elgin Toyota, also on Route 19, will be moving to Streamwood in May or June.

A new Subaru dealership is being built at 1500 N. Randall Road in Elgin, south of the auto mall.

City council member Rich Dunne said it makes sense for Volkswagen to occupy only half a lot because he said it's more of a niche dealership, compared to larger auto brands.

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