Title/Name/Summary
Rizza Porsche Sales Tax Sharing Agreement
History
In April of 2017, the Village granted a special use permit with modifications for the new Rizza Porsche development at 8760 159th Street. The Porsche dealership is relocating from 8100 159th Street where it shared space with Rizza Ford. The Ford dealership will remain at the existing location. Along with the relocation Porsche is proposing an expansion of the their dealership as compared to the site they currently occupy. In addition, Rizza Porsche and Ford are currently under the same corporation. They have submitted information that shows the dealerships will be separated into individual corporations. The following request for sales tax sharing only includes the Porsche dealership.
The proposed Porsche development includes a new 18,010 square foot dealership and two out lots on a 7.6 acre site. The project has been approved and has begun site work. The dealership currently employs 32 people full time. After construction the dealership will add 22 full time employees. The petitioner anticipates 150 temporary construction jobs created as a result of this project.
Rizza Porsche has requested a sales tax sharing incentive agreement with the Village of Orland Park to assist with their proposed project. Based on the information submitted by the petitioner they anticipate sales tax generated by their dealership to increase by 10% in the first year (2019), 20% in the second year (2020) and substantial increases in the years thereafter. The terms of the proposed sales tax sharing agreement are summarized below.
Rizza Porsche
New Porsche Dealership - $9,000,000
50% of incremental sales tax sharing
Sales Tax Base Set - $150,342 - 3 year average of Sales Tax Collected by the Village
(Sales Tax Base remains 100% Village of Orland Park)
Ten year term - this is consistent with term of BMW and Infiniti agreements
Engineer Verification of costs required
Job Creation / Retention and private investment ...
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