Mundelein prepares $2.5M tax rebate deal with Jewel-Osco
Mundelein officials have finalized the terms of a tax-sharing deal with Jewel-Osco that's designed to encourage the supermarket chain to open a second store in town.
The proposal calls for the village to rebate up to $2.5 million in tax revenue generated by a supermarket planned for 1150 W. Maple Ave.
Jewel-Osco will be reimbursed half the village's share of sales taxes the store generates for up to 15 years. Additionally, Jewel will receive an extra $100,000 annually in each of the first five years of store operations.
The tax sharing will end sooner than 15 years if the $2.5 million ceiling is reached.
In an interesting twist, if the store closes and doesn't reopen within six months of closure, Jewel-Osco promises not to prevent another grocery store from taking over the space.
Likewise, village officials can cancel the agreement at any time if the store closes.
The village board unanimously approved the terms Monday night. A final vote on the deal will occur in the next month or two, Village Administrator John Lobaito said.
The 65,816-square-foot storefront last was occupied by a Dominick's Finer Foods that closed in 2013 when that chain pulled out of the Chicago area.
Mundelein's sales tax revenue from grocery stores dropped more than 20 percent after the Dominick's store closed, officials have said.
Jewel-Osco plans to spend about $4 million to renovate the site, Lobaito said. The tax rebates are designed to help offset some of those costs, he said.
Officials expect the new Jewel-Osco will be ready for customers this fall.
Jewel-Osco's senior real estate manager, David Hene, spoke briefly about the chain's plans for the site during Monday's board meeting.
Village officials thanked Jewel-Osco for its interest in the site.
"Our community is very pleased that you are opening a second store," Mayor Steve Lentz told Hene.
The existing Jewel-Osco store in Mundelein, at 1501 S. Lake St., will remain open.