Rohrman dealership could give Buffalo Grove shot in the arm
Buffalo Grove's once vibrant corridor of auto dealerships along Dundee Road has some hope of roaring back with at least one Bob Rohrman dealership — and possibly three.
On Monday, the Buffalo Grove village board will consider a sales tax sharing agreement that would bring a Rohr-Max to the former Toyota dealership at 935 W. Dundee Road.
In addition, the village said that staff and the village attorney have been working on an agreement that would also provide incentives for Rohrman to open two additional franchises at 915 W. Dundee Road and 925 W. Dundee Road.
The agreement calls for a 50-50 split of the municipal sales tax generated from the site, with a maximum incentive based on the number of dealerships/franchises that are opened. The maximum incentive amount would be $1.5 million, $2.5 million and $3.5 million for one, two and three franchises, respectively.
Under the terms of the 10-year agreement, each dealership/franchise would be required to generate a minimum of $15 million in gross sales per year to qualify for the incentive.
The village has the option of extending the agreement an additional five years if Rohrman opens an additional franchise/dealership. Rohrman would be responsible for reimbursing the village for any payments made if the dealership/franchise closes within two years.
According to the village, Mark Battista, representing Bob V. Rohrman, reached out to the village staff several weeks ago about opening up a Rohr-Max, which is Rohrman's used car brand. There is already a location currently operating in Hoffman Estates.
Battista told the village Rohrman plans to put 300 cars on the site and sell approximately 100 cars per month at an average price of $18,500.
The village lost three auto dealers in 2008 and 2009: Arlington Nissan and Arlington Chrysler Jeep, which moved to Arlington Heights, and Arlington Toyota and Scion, which moved to Palatine.
The village board, faced with the prospect of losing $1 million in sales tax, in February 2008 approved tax incentives with Rohrman to bring in replacement dealerships, including a Saturn dealer, but that proved harder than anticipated.
“We have been having discussions with Rohrman's representatives for several years,” said Village President Jeffrey Braiman. “They have been very honest with us, as far as their needs and their abilities.”
Braiman noted that the state of Illinois limits the number of auto dealerships that can operate within certain areas.
“You can't have the same dealership within 10 miles of each other. We're somewhat hamstrung, because of our location between Barrington and Schaumburg and Libertyville,” he said.
Braiman added, “(Rohrman) has been looking to sell the property and they have been very open with us regarding that. They have had some offers from churches to buy some of that property, from a trucking company, and they know that that's not what we really want. We want something that generates sales tax.”