Elgin council OKs luxury auto mall

If you're in the market for a Jaguar or Hummer, the city of Elgin would probably prefer you wait a little bit.

City council members Wednesday night approved plans for a new luxury auto mall at Randall Road and the Northwest Tollway.

The plans call for nine auto dealerships on the 86-acre site, out of a list of dealers that includes Honda, Acura, Mercedes, Infiniti, Porsche, Jaguar, Hummer and BMW.

"It will be the developer's job obviously to go out and attract dealers to the city," said William Cogley, Elgin's city attorney.

The city has agreed to give the developer $3.5 million up front, and as much as $2.1 million in subsequent years, for infrastructure improvements.

City council members also agreed to rebate half of the sales tax revenue generated by the new auto mall over the next 20 years.

Under that agreement, the city expects to generate $26 million to $30 million from the auto mall over 25 years -- while paying out $16 million to $18 million in incentives.

City officials say tax-sharing agreements are fairly common with auto dealers because of the amount of tax revenue they bring in -- as much as 40 percent of Elgin's sales tax base.

"This application represents an economic development opportunity for the city," said Jerry Deering, the city's community development director.

The planning commission had recommended denial of the proposal because of the height of several proposed signs on the site -- one of which would have been 100 feet tall.

But the developer agreed to lower the signs -- with the tallest standing 80 feet. And the city council agreed.

"In this case, for a project of this magnitude … I better have good signage and good brand recognition," council member Mike Powers said. "(In the past) we've covered signage up. You're going to be hog-tying them in their ability to do business."