Title/Name/Summary
Auto Holdings of Chicago, LLC, and City Luxury Autowerks, Inc., (Genesis of Orland Park) - Sales Tax Rebate Agreement
History
In late 2025, the Infiniti dealership at 8751 159th Street closed. The property was sold to Auto Holdings Chicago LLC, who intend to lease the facility to City Luxury Autowerks Inc. for the purpose of operating a Genesis Dealership at 8751 159th Street. The former Infiniti dealership is relocating to their original location at 8500 159th Street (directly north of the subject property). The dealership plans significant remodel to operate the existing 24,328 square foot Genesis automotive and sales facility on the subject property.
The Genesis dealership anticipates the project will generate $15 million in annual taxable sales for the first year and will create employment for 30 full and part time employees. The total cost of the proposed remodel is anticipated to be $6,000,000. The maximum incentive contemplated is 30% of the overall project cost. Village policy has been to cap incentive agreements at 25% of the total project cost. However, because this agreement allows the Village to retain the Infiniti dealership and add the Genesis dealership the Village is considering increasing the max incentive. The terms of the proposed incentive agreement are summarized below:
Genesis to generate $15,000,000 in annual gross taxable sales
Genesis to create employment for 30 full and part-time employees
Genesis to invest $6,000,000 in remodel
Max incentive 30% of total project cost or $1,800,000
Village to share 50% of sales tax over ten-year term or when Genesis receives $1,800,000.
Project Commencement date August 30, 2027
Must comply with all Village Codes and requirements
All work on the project shall meet the requirements of the Prevailing Wage Act
The proposed sales tax rebate agreement is attached.
Recommended Action/Motion
I move to approve a sales tax rebate agreement with Auto Holdings of Chicago LLC. as outlined;
AND
Authorize the Village Manager to execute the Rebate Agreement, subject to Village Attorney review.