Schaumburg Audi dealer moving to old Hoffman police station site
An Audi dealership will likely move into the site of the former Hoffman Estates police station, with the village offering up to $250,000 in incentives for the dealer to move from Schaumburg
The Hoffman Estates village board approved giving the owners of Schaumburg Audi the incentive package at Monday's board meeting. Staff estimated the dealership would bring $400,000 in sales taxes to the village and $45,000 in property taxes each year.
If the dealership brings in $4.6 million in tax revenue over 10 years, the village would give back $250,000. The incentives are only triggered if the dealer brings in at least $350,000 per year in sales taxes.
"They will have to make money to get money," said Deputy Village Manager Dan O'Malley, who sat with trustees in place of the absent Village Manager James Norris during the meeting.
Hall Enterprises LLC owns Schaumburg Audi at 320 Golf Road in Schaumburg. The plan requires Hall to finish building by the end of 2011, with the most optimistic plan being to open in June 2011. The police station's purchase price is $2.7 million and the buyer will have to demolish the building at the 6.7-acre site at 1200 Gannon Drive will need to be demolished.
O'Malley added that the incentive package is smaller than what the village has previously offered to other dealerships, including those who sell Daewoo, Kia, Land Rover and Mercedes-Benz. Village staff said they most recently gave a tax break in 2004 to Infiniti.
"We are giving back a lot less than we have in the past," O'Malley said.
Board officials debated what was the best use of the former station off Golf Road west of the Higgins Road intersection. One earlier thought was to rent it out to a community performing arts group. That plan wouldn't have brought sales taxes to the village.
Trustee Cary Collins voted against the incentive package, comparing it to what the village give to Ryan Companies when building the Sears Centre arena. "That didn't turn out too well either," Collins said.
The village has the option of buying back the land if construction doesn't happen within 18 months. The price would be reduced from the original sale, as part of the demolition cost would be deducted. The dealer would give back all incentives if the dealership closes within three years of opening.