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Project to bring Lindenhurst's first auto dealership underway

Wells were capped and electric service cut Monday at the busy intersection of Grand Avenue and Route 45 in Lindenhurst, in preparation for what will be the village's first auto dealership and a key new business.

The work will allow for demolition of an old bar at the southwest corner and four homes scattered on the highly visible property in preparation for Zeigler Nissan, which village officials consider a bountiful source of future sales tax revenue and possible pump primer for other business.

"It's the first nonresidential major development in that area," Village Administrator Matt Formica said.

Projected dealership sales are $60 million to $75 million per year, he said. That would amount to $600,000 to $750,000 in annual sales tax revenue. However, the village will get only half that for the next 15 years, with the rest going to Zeigler under an economic incentive package offered by the village.

Lindenhurst businesses generate about $900,000 in annual sales taxes, so the Zeigler package still is considered a substantial return on investment.

"One business will be adding a lot of sales tax," Formica said.

Zeigler Auto Group, based in Kalamazoo, Michigan, owns and operates 23 dealerships in northern Illinois, Indiana, southwest Michigan and western New York, according to Dan Scheid, chief financial officer. Since September 2014, it has been operating further east on Grand Avenue in a former Chrysler dealership in Gurnee.

He described the new building as the "first new generation Nissan 2.0 design in the country" with features making it more customer-oriented. Completion is expected in January 2017.

The site is about 8 acres, but only about 6½ will be built on.

"We're working very closely with the Army Corps (of Engineers) to preserve all the wetland areas," Scheid said.

Lindenhurst officials approved the incentive package and announced the project in March 2015. Several properties were annexed to make the Zeigler site contiguous and allow Lindenhurst to bring it into the village limits. About 18,500 vehicles per day pass the corner, according to the Illinois Department of Transportation.

There have been no real delays and the time has been spent finalizing approvals from state transportation officials and other agencies, Scheid said.

"The rain the last few weeks has also made it a bit muddy out there to start moving dirt. But you will see it going now," he said.

Formica said the paperwork was prepared last week and demolition should begin soon.

"It's going to be fast," he said. "They've been chomping at the bit to do it."

@dhmickzawislak

Sales tax incentive approved for new car dealership in Lindenhurst

  Don Rich of Prairie State Water Systems works on capping a well at the southwest corner of Grand Avenue and Route 45 in Lindenhurst, in preparation for demolition and redevelopment of the site for an auto dealership. Mick Zawislak/mzawislak@dailyherald.com
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