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Advancing the Village’s goal to explore all options to bring new business activity to the Village’s business corridor, the Lombard Village Board approved two economic incentive agreements at their March 17, 2016 meeting.
These developments are the first projects that are the result of the Village’s recently adopted Economic Incentive Policy.
The first incentive agreement with Sam’s West Inc. will result in a new 135,000 square foot Sam’s Club retail warehouse store at 611 E. Butterfield Road. The incentive will help address extraordinary development costs consisting of razing existing structures, roadway improvements to Butterfield Road and addressing substantial site engineering concerns.
The overall project cost is estimated to be $19,143,000. The Sales Tax Incentive Agreement is up to $2,511,000, in a net present value. The performance-based reimbursement would be paid out over a period of up to ten years.
The other approved agreement is between the Village and Bluestone Single Tenant Properties LLC, which will be constructing a fuel station and companion 7,223 square foot convenience store at the southeast corner of North Avenue and Route 53. The station will have twenty gasoline and five diesel fueling spaces. The project will also be Lombard’s first diesel fuel location, which is intended to serve existing business traffic from neighboring industrial businesses and along North Avenue. This agreement will provide up to $587,000 to offset roadway reconstruction costs to adjacent public streets. This work would be undertaken concurrent with the station construction.
The structure of both agreements are sales taxed based and do not put any existing Village revenues at risk as they are performance based agreements. Village funds will not be used and the funds to Sam’s or Bluestone are not guaranteed. The incentive amounts will be funded by the generated sales from the projects and pose no risk to Village funds. These provisions are consistent with the intent of the Economic Incentive Policy.
“The Village is excited to work with Sam’s Club and Bluestone to make these projects a reality,” noted Keith T. Giagnorio, Lombard Village President. “The project will facilitate redevelopment of underutilized properties and will strengthen the Butterfield Road and North Avenue corridors.” Village Trustee Bill Johnston, Chair of the Village’s Economic and Community Development Committee (ECDC), lauded the agreements. “These businesses are projected to provide an immediate and longer-term impact to the Lombard economy. Such agreements were carefully reviewed by the ECDC and the ECDC supported the agreements as a means to ensure that the projects are realized.”
The Sam’s Club and Bluestone projects are in their final design stages and they are both hopeful for a 2016 construction start. The Village is committed to providing an attractive climate for new businesses that will bring long term benefits. For more information please contact the Village’s Director of Community Development William Heniff at 630-620-5749 or email@example.com.