VILLAGE OF ORLAND PARK - File #: 2012-0207

• File #: 2012-0207
• Version: 0
• Name: Sales Tax Rebate Agreement (Orland Park Motor Cars, Inc., 8470 W. 159th Street) - Ordinance
• Type: ORDINANCE
• Status: PASSED
• File created: 4/9/2012
• In control: Board of Trustees
• On agenda: 2/4/2013
• Final action: 2/4/2013
• Title: /Name/Summary Request For Economic Assistance/Sales Tax Abatement from Mercedes-Benz of Orland Park

Date	Ver.	Action By	Action	Result
2/7/2013	5	Village Clerk	PUBLISHED
2/4/2013	4	Board of Trustees
11/5/2012	2	Board of Trustees
10/30/2012	3	Development Services Department	INTRODUCED TO BOARD
10/15/2012	2	Development Services & Planning Committee	RECOMMENDED FOR APPROVAL	Pass
10/10/2012	2	Development Services Department	INTRODUCED TO COMMITTEE
9/17/2012	1	Development Services & Planning Committee	TABLED	Pass
9/12/2012	0	Development Services Department	INTRODUCED TO COMMITTEE
8/20/2012	0	Development Services & Planning Committee	CONTINUED	Pass
4/10/2012	0	Development Services Department	INTRODUCED TO COMMITTEE

Title/Name/Summary

Request For Economic Assistance/Sales Tax Abatement from Mercedes-Benz of Orland Park

History

The Village of Orland Park has received an economic assistance request from Mercedes-Benz of Orland Park for the former BMW facility located at 8470 W. 159^th Street.  Both the BMW and Mercedes-Benz properties are owned/controlled by the same business entity.  The Mercedes-Benz dealership will be expanding to include two new additional franchises (Smart Car & Mercedes-Benz Commercial Van) in the former-BMW facility.  The proposed renovation project includes both exterior and interior renovations of the existing building  The renovation cost of the facility is estimated to be around $1.2 million.  Job projections total 16 additional employees, with an estimated average payroll of approximately $700,000.

Mercedes-Benz Request

•                     $2 million incremental sales tax sharing (original request prior to updated contractor estimates) with Village

•                     50/50 share of incremental increase

•                     Ten year agreement

•                     Sales Tax Base  - average of three years previous

Village Staff Recommendation

•                     $609,742 total incentive - 50% of estimated cost of project

•                     50/50 share of incremental sales taxes above the base amount

•                     5-year agreement -  consistent with previous agreements

•                     Sales Tax Base -  2011 Calendar year

•                     Occupancy by January 2013 by both franchises

•                     Verification of actual renovation costs

•                     All other Village approvals for any site plan, elevations and building permits must be obtained.

Discussion

The Village staff recommendation is based upon a review of previous agreements with other dealerships combined with the existing agreement in place with the new BMW facility located at 159^th & Wolf Road. The new BMW facility received a $2.6 million incentive, through the Village’s Business Expansion program.   The Village has received documented sales tax information from the Illinois Department of Revenue, verifying the FY 2011 Sales Tax Base (this information is confidential).  Once this information is received, the agreement can be finalized. 

I move to recommend to the Village Board of Trustees approval of a Sales Tax Sharing Agreement with Mercedes Benz of Orland Park for the renovation and franchise expansion, as outlined and recommended by Village Staff above.

Recommended Action/Motion

I move to recommend continuing this item until the September 17, 2012 Development Services and Planning Committee meeting.