LAKE IN THE HILLS – Village trustees will consider a proposed sales tax sharing agreement that could bring a Big R department store to the former Dominick’s building on Randall Road.
BKK Properties LLC is in the process of buying the vacant store with the intent of leasing it to Central Big R Stores Inc., according to village documents.
Big R sells goods such as women and men’s apparel, lawn and gardening tools, hunting and fishing equipment, home improvement gear and pet supplies.
A memo written by Village Administrator Jerry Sagona said the project initially would create 45 full-time jobs and generate an estimated $160,000 in yearly sales tax. The company has 18 stores in central Illinois and northern Indiana, according to its website.
At Tuesday’s meeting, the Committee of the Whole will consider an economic incentive agreement that would split sales tax revenue between the developer and village until the developer has been paid $500,000.
The tax-sharing agreement would offset the $2.1 million cost of refurbishing and expanding the building, documents said. The company plans to add an 8,000-square-foot warehouse, repair the parking lot and replace the HVAC systems, among other repairs.
The developer initially proposed a $500,000 sharing agreement on April 15, revised the request to $750,000 on May 3 and agreed to reduce the request back to $500,000 after further discussions.
Homer Glen provided a sales tax-sharing agreement of $322,000 for a Big R store there, and McHenry approved a $400,000 agreement for the store that opened in November. Sagona’s document said the higher request is justified by the cost of the property and renovations.
Economic development coordinator George Hahne previously said the developer hoped to have the 80,000-square-foot store open by Oct. 15.
Two representatives of the developer will be at Tuesday’s meeting to answer questions, according to village documents.