Palatine gives big all-clear to Toyota

The largest single-use economic development in Palatine's history has the all-clear.

Construction should start this fall on a massive Toyota car dealership at the northeast corner of Rand and Hicks roads, a project that's expected to generate in excess of $1 million additional sales tax.

The family-owned Arlington Toyota is relocating from Dundee Road in Buffalo Grove, where it's operated since 1983. If all goes according to schedule, the new dealership will open September 2009.

"We're on our way to greatly increasing economic development on the Rand Road corridor," said Mayor Rita Mullins.

Councilmen enthusiastically approved final development plans and zoning on Monday, more than a year after Palatine entered into the business agreement.

The 124,000-square-foot dealership will be more than three times the size of the current facility.

"This would be one of the most modern dealerships you'd have anywhere in the U.S.," said Village Manager Reid Ottesen.

Owners project the new dealership will bring in between $106 million and $110 million in annual revenue, compared to the $96 million in current sales.

"Even though the economy in the U.S. and around here are in a recession or close to a recession, there's nothing holding us back," said Gary Vicari, Arlington Toyota's owner.

Much of the 14-acre property is vacant, aside from a car wash and Tore and Luke's restaurant, the latter of which is relocating to Rand and Spruce drives.

Palatine is paying $2.5 million toward the acquisition of the car wash's property as part of its tax increment finance assistance for the project. The dealership is contributing $1 million and will remodel the car wash to provide vehicle painting, detailing and other services.

Four years have passed since Arlington Toyota approached Palatine about moving, in part due to the land acquisitions.

"This is probably a $25 million investment on (the dealership's) part," said Ottesen. "They had to get all their ducks in a row."