Trustees like plan to attract shops

Sales tax rebates that could encourage small businesses to open or expand shops in Arlington Heights received preliminary approval from the village board Monday.

The village has done well at attracting bigger stores that can negotiate rents with landlords, said Charles Witherington-Perkins, director of Planning & Community Development.

For a small businessperson, opening a store of 5,000 square feet or smaller is a “huge undertaking,” said Witherington-Perkins. These vacant locations “are really difficult to fill and are very visible,” he said.

The plan came from the planning department with the advice of the Arlington Economic Alliance, a panel of businesspeople.

The rebate of one-third of the 2 percent local sales tax paid by a business would be available for three years. One requirement would be a five-year lease, and another could be operating certain hours.

The rebate would probably not be available to restaurants because the village seems to have no trouble attracting them. Stores that would be eligible would include clothing, shoes, furniture, housewares, electronics and books.

A sample of six small retailers — three national chains and three local stores — would have produced rebates of $2,518 to $10,895 under the program, according to a report from staff. Each rebate contract would need village board approval.

Trustees asked the staff and commission to study ideas that might help existing businesses, not just those who expand their stores by 50 percent or more, as in the proposal. Tony Guido, chairman of the commission, said business surveys under way and planned should produce ideas for this.