Submitted By
Tammie Grossman, Director of Development Customer Services
Reviewed By
A.M. Zayyad
Agenda Item Title
Title
A Motion to Concur with the Oak Park Economic Development Corporation's (OPEDC) Recommendation to Enter Into a Sales Tax Rebate Sharing Agreement with RRV Motor Cars II LLC (RRV), for the Purpose of Attracting a Newly Constructed Polestar Dealership at 1047 Garfield Street and Direct Staff to Prepare the Necessary Agreement
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Overview
Overview
The OPEDC recommends that the Village enter into a Sales Tax Sharing Agreement with RRV Motor Cars II LLC (RRV), to attract a newly constructed Polestar dealership at 1047 Garfield Street and is recommend a 60% sales tax rebate to RRV on Polestar vehicle sales over the next 6 years up to a maximum of $900,000.
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Recommendation
Recommendation
Approve the Motion
Fiscal Impact
The OPEDC expects that the new Polestar dealership may generate as much as $265,000 in total sales taxes by 2025. Lower figures should be expected in the initial years of the agreement; the OPEDC is forecasting approximately $95,000 in 2023 and $190,000 in 2024 as Polestar gains traction in the market. The OPEDC estimates that the improvement on the commercial lot will generate over $50,000 annually in new property taxes for the Oak Park taxing bodies.
Background
RRV Motor Cars II LLC (RRV) is a legal entity controlled by Mr. Fisher that assumed ownership and operation of the Autobarn Volvo of Oak Park in 2015. At the time, the Village of Oak Park approved a Sales Tax Sharing Agreement between the Village and RRV. This agreement provided a rebate of 50% of sales taxes collected over 6 years (expiring in 2021), with the rebate beginning once sales reached $50 million total during that time period. The Village of Oak Park reports that Volvo was rebated approximately $560,000 total during the agreement term.
Polestar and Volvo will be distinct brands with separate buildings, thereby requiring the evaluation of this inc...
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