Some residents still leery as Algonquin Village Board talks tax incentives for CarMax

Some residents upset with approval of new business

Daniel Sessions said he never expected a used car dealership to move right outside his Algonquin home.

“It’s not good,” Session said, adding that he recently moved to the area and would consider moving again if increased traffic threatened his young children. “None of the neighbors I’ve talked to are happy about it.”

The Algonquin Village Board offered CarMax a green light Tuesday after months of outcry from concerned residents and property owners.

The nation’s largest used car retailer soon will move into a vacant space at 2401 N. Huntington Drive, which is near a residential neighborhood.

The board voted, 5-2, to rezone the area from an industrial space to a commercial space Tuesday night.

The board also voted, 6-1, to approve the CarMax business development agreement, which will offer CarMax tax rebates not to exceed $800,000 total in the next few years. Trustee Laura Brehmer opposed both measures. Trustee Janis Jasper opposed rezoning the space.

According to village documents, CarMax must complete the purchase of the property no later than Dec. 31 and obtain an occupancy permit by 2022.

The village will retain 50 percent of all sales tax revenue generated by the project and will pay a sales tax rebate to CarMax of the remaining 50 percent generated by the dealership for a 10-year period or until the $800,000 limit is reached.

The incentive makes it “economically feasible for CarMax” to purchase the property and to construct the dealership, according to village documents.

“Our staff has done an amazing job working with CarMax and working with property owners,” Village President John Schmitt said at the meeting, adding that the company is expected to contribute $300,000 a year in taxes after incentives expire. “I’m just amazed that anyone’s even concerned about this.”

CarMax representatives have said the company will invest $11 million on the former Duralife site, and the indoor customer service center will occupy 7,400 square feet.

Senior planner Benjamin Mason said the company will buy 15 acres.

He said the CarMax customer service area will occupy about 7 acres, 5 acres will serve as a surplus parcel, and an additional 2 acres will be used for stormwater retention.

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