HomeMy WebLinkAboutRESOLUTIONS-2005-048-R-058/15/2005
• 48-R-05
A RESOLUTION
Authorizing the City Manager to Sign
A Redevelopment Agreement for Sales Tax Sharing
with Autobarn Motors, Ltd.
WHEREAS, the City, pursuant to Section 10 of Article VI of the Constitution of
the State of Illinois, is authorized to contract or otherwise associate with individuals in
any manner not prohibited by law or ordinance; and
WHEREAS, 65 ILCS 5/8-11-20 (the "Statute") authorizes municipalities to enter
into economic incentives agreements in order to encourage the development or
redevelopment of land within their corporate limits; and
• WHEREAS, Autobarn Motors, Ltd. (the "Developer") is the owner of an
automobile sales center (the "Center") located at 1001, 1012 and 1034 Chicago
Avenue in Evanston, which is located on real estate legally described and depicted in
Exhibit A of the Agreement attached hereto and made part hereof, doing business as
the Autobarn Mazda of Evanston and Autobarn Volkswagen of Evanston and has been
in operation for approximately 12 years; and
WHEREAS, the Center has generated for calendar year 2003 $291,500.00 in
sales tax revenue to the City (the "Base Year Sales Tax"); and
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WHEREAS, Developer has purchased approximately 5.3 acres of real estate
located at 3450 West Oakton Street in Skokie, Illinois and has announced an intention •
to relocate a major portion of the automobile dealership including sales and service to
said community; and
WHEREAS, said relocation will result in a substantial reduction in sales tax
revenue to the City of Evanston; and
WHEREAS, Developer has expressed his willingness to remain in the City of
Evanston if the City agrees to rebate a portion of any sales tax revenue received by the
City that are generated by the redevelopment of certain property; and
WHEREAS, the property at 1015 and 1033 Chicago Avenue and 520 Greenleaf
(the "Toyota Property") currently operated as an automobile dealership known as
Evanston Toyota will be closed and will cease all operations as of November 1, 2005
and thereby will no longer contribute to the sales tax base of the City, which real estate
is legally described and depicted in Exhibit B of the Agreement attached hereto and
made part hereof; and
WHEREAS, Developer has expressed a desire to purchase and redevelop the
Toyota Property for the purpose of relocating and expanding a portion of its existing
automobile dealerships including the relocation of the Volkswagen and Mazda
operations; and
WHEREAS, a portion of the existing Center located at 1034 Chicago Avenue will
remain in operation as a used motor vehicle sales facility; and 0
WHEREAS, the Toyota Property and 1034 Chicago Avenue (the "Property")
• will be the location of the expanded and relocated Automobile Sales Center; and
WHEREAS, Developer desires to redevelop an automobile sales center area on
the Toyota Property; and
WHEREAS, such automobile sales center will include a relocated Volkswagen
and a relocated Mazda dealership; and
WHEREAS, the extraordinary costs associated with the acquisition and
redevelopment of the Property, including the Toyota Property, require certain incentives
from the City, and the incentives that will be offered to offset these extraordinary costs
will be in the form of rebates from the City`s portion of local sales taxes generated on
the Property; and
WHEREAS, the City desires to increase sales tax revenues, property tax
revenues, retain existing businesses, diversify the tax base, create new jobs, and
provide for the general enhancement of the tax base of the City for the benefit of the
City and other governmental entities; and
WHEREAS, the City has determined that providing financial assistance in the
form of such sales tax rebates is a proper exercise of its home rule powers; and
WHEREAS, the City, in reliance on historical growth data of the Developer, has
prepared certain sales tax projections, copies of which are attached hereto and made a
part hereof as Exhibit D of the Agreement, setting forth certain potential real estate and
40 sales tax revenues to the City and Certain other governmental bodies; and
WHEREAS; pursuant to the Statute, the City Council of the City of Evanston
have made the following findings with respect to the Property, including the Toyota •
Property, and the Project;
A. The Project is expected to retain and to create job opportunities within the
City;
B. The Project will serve to further the development of areas adjacent to the
Property;
C. Without this Agreement, the Project would not be possible;
D. The Developer meets high standards of credit worthiness and financial
strength;
E. The Project will maintain the neighborhood commercial base of the City; 0
F. The Project will protect and enhance the sales tax base of the City; and
G. This Agreement is made in the best interest of the City.
WHEREAS, the Developer represents and warrants that the Project requires
economic assistance from the City and but for the undertakings of the City as set forth
in this Agreement, Developer would not acquire the Toyota Property, or construct the
Project on the Property and would relocate to Skokie, and
WHEREAS, the City has agreed, pursuant to the terms of this Agreement, to
provide certain sales tax sharing provisions in order to insure the economic feasibility of
the Project which will have the benefits described above.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF EVANSTON, COOK COUNTY, ILLINOIS:
SECTION 1: That the City Manager is hereby authorized and directed to sign a
Redevelopment Agreement with Autobarn Motors, Ltd., for sales tax sharing, attached
hereto as Exhibit 1.
SECTION 2: That the City Manager is hereby authorized and directed to
negotiate any additional conditions of the application as may be determined to be in the
best interests of the City.
SECTION 3: That the Resolution shall be in full force and effect from and after
its passage and approval in the manner provided by law.
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ATTEST:
Adopted: ` 1 5-, 2005
t
J Lorraine H. Morton, Mayor