Title/Name/Summary
Mariano's Inducement Agreement Terms
History
On December 16, 2013 the Village Board approved the special use and site plan for a new Mariano’s at the Orland Crossing’s Development located at 142nd and LaGrange Road. The project includes the construction of a 72,925 square feet grocery store on an 8.43 acre site. Given the amount of site work and infrastructure needs of the property, the Village has received a request for financial assistance via a sales tax sharing agreement. The following summarizes the project assumptions and proposed deal terms.
Project Assumptions
Construction of 72,900 sq. ft. store Mariano’s grocery store on 8.43 acre site
Located within the final phase of Orland Crossing Center
Estimated Job Creation - 400
Private Investment - $25,000,000
Anticipated annual sales (Conservative Estimate) - minimum of $45Million:
-$11,250,000 in general merchandise at 1.75%
-$33,750,000 in food, drug, medical appliances - 1%
-$534,375 - Sales Tax Received (Conservative Estimate)
Typical annual sales for similar markets - $65Million:
-$16,250,000 in general merchandise at 1.75%
-$48,750,000 in food, drug, medical appliances - 1%
-$771,871 - Estimated Sales Tax Received
Escalator Projected - 5% Annually
Financial Deal Terms
50% Sales Tax Sharing - Paid quarterly
10 year term maximum - From time of store opening
$1.45 million maximum not to exceed (not including early completion Bonus)
Documentation of actual construction costs required to be submitted prior to reimbursement. The eligible reimbursement items are attached as Exhibit A.
Early Completion Bonus - $187,152 (Construction contingency). In order to receive this, Bradford, the developer, must have the site and building substantially completed no later than September 30, 2015. Substantially completed means issuance of a Certificate of Occupancy. It does not mean opening of the store by Mariano’s. Documentation of actual use of contingency funds towards eli...
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