Title/Name/Summary
Second Addendum to Sales Tax Rebate Agreement Zeigler Infiniti and Nissan
History
On February 20, 2017, the Village and Zeigler entered into a sales tax rebate agreement to induce and incentivize the construction of a new Infiniti dealership at 8751 159th Street and renovate the existing Nissan Dealership at 8550 159th Street. On February 6, 2023 the Village and Zeigler entered into an addendum to the original agreement. The purpose of the addendum was to extend the term of the agreement from February 20, 2027 to February 20, 2032.
Zeigler Infiniti intends to relocate the dealership from 8751 W 159th Street to 8500 W 159th Street. Zeigler has requested that the Village pay the sales tax rebate provided in the original agreement for sales occurring at the new location, 8500 W 159th Street. No terms of the original agreement or addendum are changing except for the address of the new Infiniti location. The terms of the original agreement are summarized below:
Nissan/Infiniti Max incentive (from 2015) $6,000,000
50% of incremental sales tax sharing above the base sales tax amount of $338,658 (base sales tax would remain 100% Village of Orland Park)
50% tax sharing will only occur after the base amount is received by the Village
Claw back provision (incentive payback) if dealership closes/relocates outside of Village of Orland Park within 10 years
Compliance with all Village of Orland Park zoning, building and other applicable codes
The proposed addendum is attached for review.
Recommended Action/Motion
I move to approve the second addendum to the sales tax rebate agreement with Zeigler Infiniti and Nissa as outlined;
AND
Authorize the Village Manager to execute the second addendum, subject to Village Attorney review.