Cary approves economic incentive agreement with Selcke property developers

The Cary village board has approved an economic incentive agreement worth up to $130,000 with the developers of the Selcke property, which is set to be turned into a Thornton Oil gas station.

NBICARY, LLC, the contract buyer of the 3.5-acre Selcke property, has a contract to sell 3 acres at Route 14 and Jandus Cut Off Road to BSTP Midwest, LLC, to build a gas station.

Both entities recently reached out to the village about some cost challenges in developing the property, according to a village board resolution outlining the agreement.

These include the regrading and relocating detention basins; utility pole relocation; development of new access points to Route 14, and installation of public utilities to serve the development, according to the resolution.

Under the agreement, which received unanimous village board approval Tuesday, the village will return a portion of the sales tax generated from the development to the developers, community development director Brian Simmons said.

The proposal was last discussed at a Sept. 15 committee of the whole meeting, when the trustees gave a general consensus that it should move on to the full village board for a vote.

Under the agreement, the village would rebate 40% of the local sales tax revenue generated by the property to the developer, with a cap of $130,000, or 10 years, whichever comes first.

Simmons said if the $130,000 is not reached during the 10-year period, whatever money has been paid out will be the maximum pay. However, based on revenue projections provided by the developer, it is estimated the maximum $130,000 should be reached within less than four years.

Under the terms of the agreement, the gas station and related public improvements would need to be completed by Jan. 1, 2022. The village would not pay out any sales tax before the improvements, which include extending the sanitary sewer line from Jandus Cut Off Road to the new station, are completed.

Funds will be allocated starting in the fiscal year 2021-22 village budget to accommodate the payments required under the agreement, according to a resolution attached to the meeting's agenda.

"I think that it's a very small investment for a long-term return," Trustee Ellen McAlpine said. "I think we need to do something to get that property going."

This is the village's first sales tax rebate agreement, according to the Illinois Department of Revenue, which tracks such deals.