CRYSTAL LAKE – Martin Chevrolet could recoup up to $1 million of a planned $3.1 million renovation and expansion project through a sales-tax incentive deal approved by the Crystal Lake City Council.
The City Council voted Tuesday to approve the agreement.
Under the city’s Enhanced Sales Tax Incentive Program, the dealership will get half of what it generates in sales tax revenue for 10 years or until it recoups $1 million.
Martin Chevrolet owner Todd Martin has planned three phases of renovations at 5220 Route 14. The project includes renovating the existing sales building, connecting the sales and service buildings, and adding a car wash, a new entry monument and flag poles. The entire project is estimated to cost $3,107,723. The bulk of the project will be completed in the first phase. The renovations will bring the dealership in line with General Motors requirements, according to city documents.
The City Council has previously approved nearly identical agreements with M’Lady Nissan, Brilliance Honda and Anderson Motors, which recently opened its standalone Volkswagen dealership on Route 14.
If Martin Chevrolet closes, it would have to repay the sales-tax incentive money based on a sliding scale. The agreement also prohibits Martin Chevrolet from opening a competing dealership within 10 miles.