Barrington gives tax break to expanding dealership
Barrington trustees Monday approved an economic incentive agreement with Wickstrom Auto Group, paving the way for the expansion of Wickstrom Chrysler Jeep Dodge Ram.
The main part of the agreement promises a reimbursement by the village of just under $1.5 million in sales tax receipts over the next 10 years to help offset the cost of the dealership’s coming expansion.
In addition, the village will pay the auto group another $7,750 for an easement for the construction of a sanitary sewer lift station immediately next to its property at 630 W. Northwest Hwy.
Dealer partner Colin Wickstrom said such incentives have been important to auto dealerships in this economic environment — particularly when one’s competitors already benefit from them.
“It’s really important because we need to be competitive with other dealerships in other communities,” Wickstrom said. The dealership’s expansion itself was approved two weeks ago.
Incentives for auto dealerships help taxing bodies because dealerships, with expensive products, generate a lot of sales taxes, he said.
While the agreement comes after the approval of the expansion, the incentive is something the dealership and village have been discussing for years, Wickstrom said. And actual construction work on the addition hasn’t yet started anyway, he said.
“It shows we have a good partnership and relationship with our dealerships,” said Peg Blanchard, Barrington’s director of economic and community development.
Regarding the annual repayment of some sales taxes, there are three specific conditions the dealership must meet: It must generate at least $525,000 in sales tax revenue before it’s entitled to any reimbursement; complete at least $1 million of its expansion project by June 1, 2012; and all $3 million of it by June 1, 2013.
But Wickstrom expects the entire 20,000-square-foot addition to the existing 13,000-square-foot facility at 660 W. Northwest Hwy. to be completed between late May and early August next year, depending on the weather.
The addition will provide increased showroom space and corporate training rooms.