Huntley OKs sales tax deal for new Jewel project
Construction of an $11.5 million Jewel-Osco on roughly 17 acres off Route 47 in Huntley could begin this fall.
Village officials recently approved plans and granted a 50 percent sales tax rebate to the developer as part of the business development agreement.
The proposed 63,538-square-foot store is targeted for the northeast corner of Route 47 and Reed Road on the north side of town.
Jewel is buying the property from a bank. It will be split into two lots with the grocery store built on eight acres in the southern portion next to Reed Road. The developer also is considering building a gas station on a roughly three-acre outlot.
The sales tax revenue-sharing agreement is for up to 10 years or a total of $1.75 million, Assistant Village Manager Lisa Armour said.
"Within 12 months after the Jewel is built, if they also open a gas station they could get $2 million (total)," Armour said. "There could be another $250,000 incentive, if there is a gas station."
In its first year, the new store is expected to generate about $286,000 in revenue from the village's 1 percent sales tax to be split with the developer - Huntley would receive $143,000. By year six, estimated sales tax revenue would be roughly $340,000 - the village's take would be $169,780.
Jewel would become the anchor tenant of the shopping area, which includes a Walgreens to the west and a multi-tenant center to the north housing a Dunkin' Donuts.
Jewel anticipates hiring 160 employees. The store will focus on fresh and prepared foods and include a drive-through Osco pharmacy, a Starbucks coffee shop, a cafe and seating area, and outdoor seating and seasonal sales areas.
The developer also plans to spend $1 million to renovate an existing Jewel-Osco on the south side of town at 13200 Village Green Drive, across from Sun City-Huntley. That store generates $280,000 for the village yearly and there is no sales tax sharing agreement, Armour said.
"They will update it similar to what's been done at their Algonquin store (with) more focus on being able to provide fresh foods," Armour said.
According to the business development agreement, Jewel must build and open the new store and complete renovations to the existing store by Dec. 31, 2019. The new store is expected to open by early fall of 2019.
"It says a lot about the strength of our community that Jewel wants to not only reinvest in their existing store but also build a second location," Armour said.