Thorntons asks Prospect Heights for $329,000 tax incentive

The developer behind a controversial plan for a 24-hour gas station in Prospect Heights wants the city to grant about $329,000 in tax breaks to pay for parts of the project.

Thorntons Inc. is asking the city council to refund half the company's local sales tax revenue for either six years or until the rebates pay the company's cost of installing an underground stormwater vault on the site at the northwest corner of Rand Road and Thomas Street.

Jode Ballard, senior manager of development for the company, estimates the drainage system would cost $295,000. The company would pay for it upfront with a loan, and interest costs could increase the total expense to about $329,000.

The agreement would end after six years, even if Thorntons does not recover the full cost of the stormwater vault.

"We're on the hook, not the city," Ballard said. "If it sunsets with balance remaining it would be an expense we as Thorntons would have to eat."

If council members don't approve the incentive, Thorntons could move the project to another city, Ballard said. City council members did not vote on the request when Thorntons presented the proposal Saturday.

Thorntons estimates the gas station will make about $9.5 million in sales in its first year. Under the city's existing 1.5 percent sales tax, the company would normally pay about $142,000. However, if council members approve the proposal, the city would instead receive about $71,000.

Neighboring residents have opposed the $4 million gas station, which would sit on a 1.4-acre triangular site surrounded on three sides by Arlington Heights. They want a business that won't add to the traffic that often backs up from nearby Hersey High School.

Prospect Heights officials believe the gas station with 10 pumps and a 4,400-square-foot convenience store would bring business to a blighted corner. Mayor Nick Helmer said the gas station would be a boon to the city's coffers.

"We're in a position the city wants Thorntons and needs Thorntons," Helmer said. "And Thorntons wants to come to Prospect Heights. I think it's a win-win situation."

The city council, which already has approved the gas station, is expected to vote on the proposed tax breaks during a meeting at 6:30 p.m. Monday Feb. 13, at city hall, 8 N. Elmhurst Road.