Luxury used car dealership coming to Palatine

Fidelity Motor Group recently bought its first piece of inventory - a 2009 Bentley - for the bargain price of $141,000.

One wouldn't think there'd be much demand for Rolls-Royces and Maseratis in this economy, but owner John Alan Sfire said sales for pre-owned luxury vehicles are up about 40 percent over last year.

He's hoping to capitalize on that niche market by opening a dealership in the vacant Thrifty used auto sales building at 2019 N. Rand Road in Palatine. The village council on Monday unanimously approved the proposal.

"Needless to say, the sales tax benefit to the municipality is quite significant," Sfire said.

Sfire expects to do between $30 million and $35 million in business in the first year, and up to $60 million the second year. He said the average sale price of the dealership's pre-owned, high-end vehicles will range between $70,000 and $80,000.

Though Fidelity will sell less expensive brands such as BMW and Infinity, it's a price point that won't compete for business with the nearby Arlington Toyota, which owned the Thrifty site and just sold it to Fidelity.

Thrifty operated only briefly, and the Fidelity dealership is taking over its redevelopment agreement. It will therefore benefit from Palatine's tax increment financing district. The village will reimburse Fidelity for up to $400,000 over a minimum of eight years for land acquisition, drainage work and other improvements.

The village will use TIF funds, which capture additional property tax revenue as the value of a property increases. Councilman Jack Wagner defended Palatine's use of the program, which uses financial incentives to encourage development.

"This is not a corporate welfare program," he said. "This is a business decision. It's good business for the village of Palatine."

Fidelity plans to expand the current building by about 3,000 square feet in order to house about 30 of the dealership's most expensive vehicles indoors. Another 70 or so will be kept outside.

Sfire also anticipates buying the adjacent property and expanding even further about a year after opening.

The dealership's parent company, Fidelity Group, is the real estate company behind Deerpath Court Shopping Center and more than 20 other commercial properties along Rand Road.