- Jun 16, 2016
A large industrial building located at 1808-1850 Holste Road which has been vacant for four years, will be soon transformed into an indoor luxury used car dealership, made possible in part by a sales tax sharing agreement with the Village of Northbrook.
The dealership will be the third for Ultimo Motors, which currently has showrooms in Warrenville and Westmont. Northbrook was selected as the desired location to bring their concept to the North Shore where they have many customers.
Currently the Village collects 1% sales tax on in-state auto sales. Under the terms of the agreement, the Village will rebate 50% of the 1% sales tax generated by auto sales at the Ultimo Motors for 10 years or $1.5 million, whichever comes first. Ultimo sales estimates start around $40 million a year, increasing to around $60 million. This would generate around $340,000 in sales tax a year, eventually increasing to $510,000. These amounts would be equally split between Ultimo and the Village according to the agreement. After that, the Village would retain the full 1%.
The business is expected to have a low visual impact with no increase in traffic anticipated. According to Ultimo, most customers view the cars online and then come to the dealership to make the purchase.
“This dealership is well known and has an excellent reputation,” commented Trustee Michael Scolaro at the Village Board meeting. The proposed rebate agreement passed unanimously.
Last year the one-story 94,227 square foot building on the 3.42 acre site was rezoned to the ICS Industrial and Commercial Services District, which allows motor vehicle dealerships as a permitted use. The new showroom will be three times the size of the Warrenville location with the ability to show up to 400 cars.
Ultimo spokesperson Joseph Ghaben informed the Village that in addition to the $2.35 million to purchase the property, it plans to invest around $1 million to repair and improve the site, which would include constructing a glass store-front along Holste Road, installing LED lighting, resealing all the floors, repairing the roof and HVAC systems, landscaping the property and other improvements.
After touring the building several years ago, the Industrial and Commercial Development Commission (ICDC) identified the facility as a potential site for the Cook County Class 6b tax relief program. Given its relatively low ceiling heights, its less than desirable truck dock configurations, and limited number of parking spaces for a manufacturing use, the building has remained predominantly vacant.
The Village previously entered into a sales tax rebate sharing agreement with Foley Cadillac in 2003 to help with expansion and site improvement. The maximum amount to be rebated is $4 million.