Submitted By
Tammie Grossman, Director of Development Customer Services
Reviewed By
A.M. Zayyad
Agenda Item Title
Title
A Resolution Approving a Sales Tax Sharing Agreement Between the Village of Oak Park and 1144 Lake Street, LLC and Authorizing Its Execution
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Overview
Overview
On August 1, 2022, the Village Board approved a motion to concur with the Oak Park Economic Development Corporation's (OPEDC) recommendation to enter into a Sales Tax Sharing Agreement with 1144 Lake Street, LLC for the purpose of attracting Dom's Kitchen & Market to locate at 1144 Lake Street. The Sales Tax Sharing Agreement in being presented for the Board's review and approval.
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Recommendation
Recommendation
Adopt the Resolution.
Fiscal Impact
The OPEDC expects that Dom's Kitchen & Market will generate approximately $350,000 in total annual sales taxes. The OPEDC projects that at least 70% of the total sales will be additive to the Village's current sales tax collections. Dom's is reporting that the construction costs are approximately $6.5-8 million more than other locations they are considering and $6-7 million more than a new construction build. The 50/50 sales tax split over 20 years will not fully compensate for the unusual build-out costs but would constitute a significant incentive by defraying costs. If the OPEDC projections are correct the Village will realize an annual increase in sales tax revenue of $122,500 annually.
Background
Dom's Kitchen & Market is an innovative grocery/restaurant/food hall hybrid, founded in part by Bob Mariano of the well-known Mariano's grocery chain. Dom's currently operates a single 18,000-square-foot location in the Lincoln Park neighborhood of Chicago, with a second Chicago store under construction in the Old Town neighborhood. Dom's reports that the business has performed extremely well, generating praise and excitement from the community and in the industry. Dom's corporate real estate team is looking to aggressively ex...
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