Hoffman Estates approves Duluth Trading Co. store
Hoffman Estates officials Monday approved the construction of a Duluth Trading Co. store in the village's Prairie Stone Business Park, as well as a $225,000 sales tax rebate for the business.
Though the tax incentive agreement is contingent on the store opening by Dec. 1, 2016, representatives of developer Baum Revision LLC could not comment on a more specific estimate of the opening date Monday.
The only aspect of the project's approval deferred Monday night was the plat subdividing the full 6.7 acres of currently foreclosed land into separate buildable lots for utility and bike path easements.
The current owner - a bank - doesn't want to sign the plat itself, village officials explained. And so the subdivision plat is expected to be approved and signed by the new owner on Nov. 16, after the closing of the sale.
The reason for the sales tax rebate is the developer must buy the entire property from the bank - more than is needed for the Duluth Trading Co. store - and so must assume the greater financial burden of marketing the rest to someone else.
At least one more business can fit on the site, village officials agreed, but one hasn't yet been identified.
The sales tax agreement will end after the developer has recouped $225,000 from the village or after 10 years, whichever comes first.
For the first partial year of the agreement in 2016, Baum will recoup all of the village sales tax collected.
As each of the next 10 years passes, the developer will recapture an ever-smaller percentage of the village sales tax, estimated at $140,000 per year.
Hoffman Estates Economic Development Director Kevin Kramer said that over the course of the 10 years, the village is expected to collect $5 for every $1 rebated to the developer.
Baum Revision in April asked for only a $140,000 - six-year rebate - but recently increased the request, citing stricter development standards by the Metropolitan Water Reclamation District and higher construction costs.
Village Trustee Gayle Vandenbergh has recused herself from all discussion and votes on the project because she works for W-T Engineering, the firm doing the site plan.