Elk Grove Village has agreed to a deal that will bring a Planet Fitness and potentially a grocery store or "hypermart" concept to property previously occupied by a Dominick's supermarket.
Village trustees are expected to finalize a redevelopment agreement next month worth up to $2 million to fill the vacant space at the anchor property of the Elk Grove Town Center, just southwest of the intersection of Arlington Heights and Biesterfield roads.
Planet Fitness, one of the largest fitness club franchises in the country, will occupy about 18,000 square feet of the former grocery store. The remaining 54,000 square feet could be filled by a grocery store, liquor store or hypermart concept, which combines a department store and grocery supermarket. A tenant for that space hasn't been announced.
"We are finally filling up that location," Mayor Craig Johnson said. "We're extremely optimistic the other location will be filled in the very near future."
Under terms of the agreement, the village will contribute $500,000 in tax increment financing to property developer Brixmor Holdings to renovate part of the building into a Planet Fitness. The village will contribute up to $1.5 million in tax increment financing over three years -- up to $500,000 per year -- to redevelop the other 54,000 square feet after it's occupied.
Increased property tax revenues generated by new developments in tax increment financing, or TIF, districts are diverted to a fund used to help pay for improvements within the area.
The agreement also stipulates that if the businesses close within five years of opening, the incentive money must be repaid to the village.
"We have some protections for taxpayers built into this agreement," Johnson said.
Brixmor also has committed to completing about $100,000 in aesthetic improvements to the Elk Grove Town Center shopping area, Johnson said.
The site formerly was occupied by Dominick's but more recently a Joe Caputo & Sons grocery store, which closed in February 2016.
The agreement is expected to be finalized during a board meeting July 17.