Fox Lake Chrysler lot becoming high-end used car dealership

Fox Lake officials hope the opening of a high-end used car dealership on Route 12 will offset a dramatic loss in sales tax revenue.

Mayor Ed Bender said he is excited the owners of Extreme Auto Group are opening a used car dealership Saturday at the former Chrysler dealership that has been vacant since December 2008.

"From what we have been told, they are planning to sell high-end used cars, like Lexis, BMWs and Escalades. Hopefully they will do well," Bender said.

Owner Carl Myers said the move to Fox Lake came after he was forced to shut down Extreme Jeep on Route 120 in McHenry after losing his franchise agreement during the Chrysler bankruptcy last year.

"When they delivered the letter saying we were on the list that lost their franchises, it was a shock to all of us. It broke our heart," Myers said. "But, we were presented the opportunity to take over and lease this building. We saw the potential and we jumped at it."

He said the full-service facility has a good customer base going into it, and the Extreme brand is well known, so the business should do well.

"Not only do we bring a lot of tax dollars to a community, but we are also involved in any community we go into," he said. "It's a win-win for us but also a win-win for the village of Fox Lake. And, it'll sure look nice seeing BMWs and Jaguars on Route 12, won't it?"

Fox Lake has been hit hard economically during the recession, and part of the reason is the closure of two car dealerships on Route 12. Fox Lake Ford, across from the former Chrysler dealership, also closed.

Village officials estimate about 10 percent of its sales tax revenue has been lost since the recession kicked in about 18 months ago.

Village officials approved a budget in June that showed an estimated sales tax shortfall of about $200,000 from 2008-09 fiscal year. That drop could be partially pinned on the closure of the two dealerships.

Officials also said sales tax revenue in the current fiscal year is about $60,000 below estimates.

Bender said, while the new dealership should add sales tax dollars, he isn't sure how much or when the money will start appearing on the fiscal budget.

"It will definitely help us out in the future," he said. "When that will be, though, I don't know for sure."