Vernon Hills approves incentive for shopping center

The owner of a Vernon Hills shopping center will get a rare incentive, as village officials scramble to keep its retail base afloat.

Chase Properties, owners of the Vernon Hills Fashion Square at routes 60 and 21, will receive about $1.1 million in rebated sales tax as part of an agreement approved Wednesday by the Vernon Hills village board.

"All things being equal, we're trying to salvage this mall," Trustee Jim Schultz said.

The 20-year agreement calls for Chase to receive 70 percent of any sales tax generated during the first five years.

The prominently located shopping center, which formerly housed a Wickes Furniture and Linens `n Things stores has been more than half empty since Jan. 1.

The incentive will allow Chase to proceed with a $6 million renovation of the Wickes space for a Dick's Sporting Goods store, and make other improvements throughout the mall.

Trustees agreed the incentive would provide a solid anchor tenant and strengthen the outlook for other businesses there.

Smaller spaces could be filled with any business, but the agreement includes a provision that negates the sales tax rebate for a store that moves from another location in town to one of the large spaces.

"If we're going to give tax incentives, I want it for additional square footage," Trustee Thom Koch said. "We want to come out ahead."

The sales tax incentive is only the second the retail-heavy village has ever given. Computer giant CDW receives a 50 percent sales tax rebate.

The ordinance approving the incentive says it will create and retain jobs and help restore the village's financial base.

"We're in a marketplace I don't think any of us have experienced before," Mayor Roger Byrne said.