Council agrees to tax incentives for Elgin Kia's move, with a small catch
Elgin City Council members tentatively agreed to provide tax incentives for Elgin Kia to move to the Randall-90 Auto Mall Wednesday, but not without asking for something in return.
The dealership has been located in a 27,000-square-foot facility at 909 E. Chicago St. since 2015. Kia Motors America is requiring Elgin Kia to make capital improvements to its facility in keeping with the company's corporate image plan.
In exchange for staying in Elgin and relocating to the 86-acre auto mall near I-90 and Randall Road, Elgin Kia asked for a 50% rebate in sales tax generated by the dealership for the next 15 years, in addition to the graduated property tax rebates given to all dealerships in the auto mall. They're also seeking fast-tracking of permits and a waiver of building and development permit fees for its capital improvements.
The package is similar to one approved last year to keep Biggers Mazda in Elgin at the nearby former site of Randy's Vegetables.
On Wednesday, the city council's committee of the whole gave unanimous preliminary approval to the plan but requested something in return.
Citing the company's electric-vehicle sales figures, Mayor David Kaptain asked Chuck Weck, president of Elgin Kia, for the company's input on how Elgin and its Sustainability Commission could make the best use of planned charging stations for electric vehicles.
Kia sales figures show a 97% year-over-year increase in hybrid and battery-electric vehicles in 2021.
Council member Toby Shaw put a finer point on the request.
"The city is doing a little bit of a stretch here with this incentive agreement," Shaw said. "It's a little bit extra on both the sales tax side as well as the real estate, as well as some of the development fees.
"So what we're saying is how can you reciprocate some of the knowledge from your environment back into the community?"
Council member Tish Powell then upped the ante.
"I would actually like to see Kia sponsor a couple of charging stations within our community," she said.
Weck seemed agreeable to the amendment.
"We have been very supportive of things locally up until this time," Weck said. "A modest-sized charging station is not a big issue."
A modified plan will be brought before the council at an upcoming meeting for final approval.