HUNTLEY – A 50 percent sales tax rebate sought by a developer planning an $11.5 million Jewel-Osco in Huntley has been approved by village trustees.
A new 63,538-square-foot store will be built for $11.5 million at the corner of Route 47 and Reed Road. Developers also will spend $1 million to renovate the existing Jewel-Osco on the south side of town, 13200 Village Green Drive, across from Sun City of Huntley.
The new property is owned by a bank, and Jewel is buying the 17.29-acre lot, which will be subdivided into space including 8.18 acres for the new store. Developers also are considering building a gas station on a 2.66-acre outlot, according to village documents.
The existing Huntley store likely will receive upgraded decor and lighting, as well as enhanced fresh, prepared and organic offerings, according to village documents.
About 160 new employees will be hired for the new store.
The village’s business development agreement was approved, 6-0, on Thursday, Trustee Ronda Goldman said. The agreement provides a sales tax rebate of 50 percent of the village’s shares of sales tax generated by Jewel. The abatement period would last no more than 10 years or a total amount rebated of $1.75 million.
If a gas station is opened no later than 12 months after the new store, the maximum incentive amount increases to
If Jewel does not open the new store and renovate the existing store by
Dec. 31, 2019, the agreement can be terminated.
The existing store generated $153,751 in property taxes in 2017, and the village received $9,772. The new store is expected to generate at least that amount if not more, according to village documents.
The estimated sales tax revenue generated in the store’s first year would be $286,000, of which the village would receive $143,000. By the store’s sixth year, the village is expected to receive $169,780.
The village expects the new store will further development along adjacent areas, according to village documents.
“I’m happy to have Jewel on the north side of town, as well as the existing store on the south side,” Trustee Tim Hoeft said Saturday. “I think it’s a positive for everybody.”
The new Jewel store’s site plan includes a drive-thru pharmacy, outdoor seating area and outdoor seasonal sales area.