Palatine woodworking store moving to Libertyville
The selection of specialty products for Lake County-area woodworking enthusiasts will expand with the opening of a Woodcraft store in Libertyville. But the move isn't solely based on marketing.
Owner Ron Hoogenakker is moving his Palatine store to the Greentree Plaza shopping center on Milwaukee Avenue to a space best known for the Pine Tree Pet Super Center, a previous longtime occupant.
It will be a quick turnaround for the pharmacist-turned-entrepreneur. The Palatine store closes Saturday and the Libertyville entry opens Tuesday.
Hoogenakker also owns a franchise in Woodridge, the only other one in Illinois, according to the company Web site. Woodcraft Supply LLC has about 80 locations throughout the U.S.
"The lease was up. I'd like to move my two stores a little further apart. We're a specialized business," he said.
Besides marketing considerations, the cost of doing business in Cook County also was a factor, he said.
"To be honest, Cook County sales tax is killing us. It's very uncompetitive," he said.
The sales tax rate in Libertyville is 7 percent compared with 10 percent in Palatine.
"We sell $3,000 or $4,000 table saws. The difference in tax is huge on that," Hoogenakker said.
"It's not just sales tax. Property tax in this particular location has gotten exorbitant," he added.
Woodcraft is the second company within a week to cite the tax discrepancy as a factor in moving to Libertyville. Noise Barriers LLC left Schaumburg to open in a larger space in Libertyville on March 1. The company noted that overall taxes would be half of what was paid in Cook County.
In May 2009, Brook Electrical Distribution Company moved from Addison to Libertyville because of the sales tax differential.
Growing the Woodcraft franchise by expanding the market also was important.
"More of our customers are coming from the northeast of where we are now," said Hoogenakker, who used a commercial broker to find a new location. "I knew I wanted to get out of Cook County (and) there are only so many viable corridors. One is Route 12, one is Milwaukee Avenue."
Woodcraft sells about 8,000 items tailored for woodworkers, predominantly hobbyists. About a quarter of the customer base is commercial remodelers and builders, Hoogenakker said.
Billed as the oldest woodworking retailer, store employees are woodworkers themselves, who dispense advice, tips and run demonstrations.
"People who enjoy the craft will drive miles for it," said Heather Rowe, Libertyville's economic development coordinator.