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File #: 2014-0034    Version: 0 Name: Mariano's Inducement Agreement Terms
Type: MOTION Status: PLACED ON FILE
File created: 1/14/2014 In control: Board of Trustees
On agenda: 1/20/2014 Final action: 1/20/2014
Title: /Name/Summary Mariano's Inducement Agreement Terms
Attachments: 1. Mariano's - Exhibit A
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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