Lombard Sams Club Gets Illinois Sales Tax Deal
If you were already sick of Corporate America eating up all of the incentives, here is another one to think about. The new Sam’s Club will receive up to $2.5 million to cover “extraordinary costs associated with the project.” Those costs include site preparation, engineering, regrading, addressing buried underground utilities and completing Butterfield Road improvements requested by the Illinois Department of Transportation. The total cost of the project is estimated around $19.1 million.
The money will come from the 1 percent of state sales taxes earmarked for the village. Each year, the village will retain the first $136,000 of sales taxes generated by Sam’s. The next $400,000 will go to Sam’s and any taxes above $536,000 will go to the village.
That structure will continue until the $2.5 million is reached. The village isn’t required to continue giving Sam’s a portion of the sales tax after 10 years, even if the $2.5 million is not reached before then.
Furthermore, the board agreed to provide Bluestone Single Tenant Properties LLC with up to $587,000 to offset the cost of improving roads near a diesel fuel station the company is planning to construct later this year on the southeast corner of North Avenue and Route 53. Improvements will be made to North Avenue and Columbine Avenue and Broadview Avenue will be completely reconstructed.
“Rather than us tapping into our capital improvement costs to reconstruct Broadview, we can just earmark the revenues that are generated from this project to it,” Heniff said. “They’re going to do it and then they can be reimbursed.”
The village will receive the first $25,000 of sales taxes generated from the business, which will include five fueling stations for trucks, 20 regular fueling stations and a 7,000-square-foot convenience store.
Subsequent sales taxes from the roughly $7 million project will be shared equally between the village and Bluestone until the $587,000 is reached or 10 years has passed.
Lombard Sams Club Gets Illinois Sales Tax Deal
