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Posted on: July 5, 2016

Village Board Approved Economic Incentive Agreement to Provide for a new Mariano’s Grocery Store

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As part of the Village’s continuing commitment to grow the local economy, the Village Board approved an economic incentive package with Bradford Lombard 1 LLC, in order to facilitate the construction of a 74,000 square foot Mariano’s grocery store.

The future store location is at the southeast corner of Roosevelt and Finley Roads, currently the site of a vacant Kmart store. The Board’s action follows the zoning approval granted by the Village Board earlier this month.

Bradford sought the incentive to help address extraordinary development costs associated with their proposed project. Per the Village’s Incentive Agreement Policy, the incentive will be in the form of a Property and Sales Tax rebate from revenues generated from the development. The rebated Sales Tax will be applied toward offsetting the extraordinary costs of razing of the existing store and substantial engineering concerns.

The Village will also undertake roadway improvement to address existing left-turn deficiencies along Finley Road, lane improvements along Roosevelt Road and a new traffic signal at the east entrance to the site, subject to final review and approval by the Illinois Department of Transportation.

The overall construction project cost is estimated at $25.5 million. The Sales Tax Incentive Agreement is in the amount of $3 million in a net present value. The performance-based reimbursement would be paid out over a period of up to nineteen years. As with similar Village of Lombard Incentive Agreements, this agreement does not put any existing Village revenues at risk as it is an entirely performance based agreement. Village funds will not be used in advance to make the project occur and any reimbursements would be exclusively from the sales tax dollars generated from the store itself. The Village also utilized a third-party consultant to ensure that the incentive was necessary in order to move forward with the project.

School Districts 44 and 87 have also entered into the agreement. As such, they will continue to receive the same amount of property taxes that they currently receive, plus 50% of their designated portion of new Mariano’s property tax for the next ten years, and 100% of their designated portion of the Mariano’s property tax after that point in time. Over the life of the agreement, School District 44 could potentially benefit from the projected property taxes of $2.21 million with School District 87 benefiting approximately $1.31 million

“The Village is excited to be able to use our Incentive Agreement Policy to bring this major project to Lombard,” said Lombard Village President Keith T. Giagnorio. “The project will create jobs, strengthen our commercial sector, and will help serve as a catalyst for future economic development activity.”

Village Trustee Bill Johnston, who serves as the Chair of the Village’s Economic and Community Development Committee (ECDC), lauded the project and the agreement as a means to implement the Economic Development Strategies objectives of the community. “The former Kmart site hasn’t generated any sales tax since closing its doors in 2013,” said Johnston. “I’m glad to say that the ECDC supported the idea, and we were able to negotiate with Bradford to develop this agreement.”

Trustee Mike Fugiel of District 2, where the new development will be located, welcomes the new project. “A Mariano’s on the Roosevelt Rd. corridor will create a new market niche that will serve residents and commuters with an opportunity to purchase groceries, food, and fuel they might have purchased elsewhere,” said Fugiel. “The Village Board and I are very excited to have this addition to the community.”

The Mariano’s grocery store is currently in design stages. Engineering plans are in final planning stages and the project has been given a tentative late 2016 start date.

The Village of Lombard is committed to providing an attractive environment for new businesses that will serve to bring long term benefits to the community. For more information please contact the Village’s Director of Community Development William Heniff at 630-620-3599 or

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