Title
Steinhafels, Inc. - Inducement Agreement
History
Steinhafels, Inc., a fourth-generation furniture retailer, is looking to invest $8 million in the former Bed Bath and Beyond and Steinmart locations (97,000 sq. ft.). Steinhafels currently has seventeen stores, fourteen in Wisconsin and three in Illinois. It is estimated that they will generate approximately $21 million in sales in the first year, with 3% growth in subsequent years.
Steinhafels has requested a sales tax sharing Inducement Agreement with the Village of Orland Park through the Village's Strategic Backfill Incentive Program. Steinhafels would receive fifty (50%) of the sales tax generated at their store for a period of time which shall not exceed ten (10) years. Total shared sales tax shall not exceed 25% of the cost of the project.
Steinhafels approximate cost of the project $8,000,000.
50% sharing of sales tax.
Ten-year term - this is consistent with previous Inducement Agreements.
Maximum 25% project costs or $2,000,000, whichever comes first.
Commercial Impact program receiving 25% reduction on permit and related fees.
The signed Inducement Agreement is attached.
Recommended Action/Motion
I move to approve a Strategic Backfill Incentive Program Inducement Agreement with Steinhafels, Inc. as outlined above and to be incorporated into their final Development Agreement, pending approval of the zoning, special use, and building permits.