Lindenhurst uses sales tax incentive to land new Ziegler Auto Group dealership
Lindenhurst officials have approved the village's first economic incentive package and will use it to land a new automobile dealership planned for a high-profile corner.
Village board trustees Monday night voted in favor of a development agreement with Michigan-based Zeigler Auto Group for a proposed Nissan dealership on the southwest corner of routes 132 and 45. As part of the pact, the village would share 50 percent of the sales taxes generated by the business with Zeigler for 15 years.
"This is a major economic development project that will generate positive revenue to the community, create jobs locally, and will facilitate additional development in the area," according to Mayor Susan Lahr.
Village Administrator Matt Formica said the dealership would generate an estimated $60 million in sales annually. That equates to $600,000 in sales tax revenue, which would be split with Zeigler, officials said.
The project would be spread over several properties, some of which currently are vacant and have been annexed to the village. The inaugural incentive deal follows parameters established last year by village officials to attract these types of developments, Formica said.
Zeigler operates six auto dealerships in Chicago suburbs, including three in Schaumburg, according to its website. The company hopes to begin construction in Lindenhurst in 2016, with an official opening sometime in 2017, according to the village.
Formica said Zeigler approached the village with the idea about the dealership at the intersection. He said Zeigler representatives showed the village examples of revenue-sharing agreements the company struck in other towns.
Zeigler is the contract purchaser of the 8½-acre site that officially was brought into Lindenhurst's boundaries through the village board's approval of an annexation agreement Monday night.
"This area has long been targeted for development and redevelopment," Formica said.
In all, village board trustees Monday approved the annexation of 18 parcels in the Route 45 corridor near Route 132. Formica said it's hoped the Zeigler proposal leads to other development on the newest section of Lindenhurst's east side.
Automobile dealerships are on the wish lists of other Lake County towns, including Grayslake.
For example, Grayslake officials have developed a list of potential financial incentives that could be offered as part of a plan to recruit or retain dealerships. The village's general guidelines state dealers that generate a minimum of $200,000 in annual local sales tax for Grayslake and create or retain at least 30 full-time jobs would be eligible for the incentives.