Vernon Hills considers business, customer incentives
A perennial Lake County shopping leader is feeling the pinch and considering incentives to grow and attract business.
Grants or loans and sales tax rebates are potential tools the Vernon Hills village board will consider to protect its commercial base in a down market filled with hungry competitors. Staff has suggested a 1 percent tax on food and beverages to fund the grant or loan program.
In a separate matter, a gift card promotion for the holiday shopping season, also is being considered. That would provide $50 to be spent at local businesses once a shopper spends $500. The proposed program would apply to the first 2,000 applicants.
Both will be discussed today by the village board during its work session following the regular board meeting at 7 p.m. at village hall, 290 Evergreen Drive.
Supporting its economic base has become a key concern of the village, as it does not levy a local property tax and relies in large part on sales tax revenues for day-to-day operations.
Vernon Hills stores report more than $1 billion in annual sales, of which the village gets 1 percent. But the economy taken a toll.
The most recent report shows sales tax revenues in April 2009 were nearly one third less than April last year, for example, and village leaders have taken active steps to protect its base.
A special committee of local experts was drafted by Mayor Roger Byrne to study the retail landscape, and consultant Melaniphy & Associates Inc. was hired to update its analysis of the village and make recommendations.
Incentives of some sort were among the findings, as retail vacancies and competition from other communities to lure business intensifies.
"We're looking for way to compete," said John Kalmar, assistant village manager.
The incentives would be targeted to businesses along the routes 60 and 21 commercial corridors.
A program of some sort has become more urgent as Chase Properties, owner of the Hawthorn Hills Fashion Square mall, wants village help with improvements fill the vacant Wickes Furniture store space.
Kalmar said landlords of commercial properties are struggling because tenants are calling the shots on rents.
"It's totally reversed," he said of the retail market.