Title
Joint Resolution approving and authorizing execution of an Economic Development Incentive Agreement between 18834 Grand Building Corp. and Lakeside Ford LLC d/b/a Gurnee Ford-Lincoln-Mercury and Lake County.
Staff Summary
• In 2005, the County and Fair Oaks Land, LLC entered into an Economic Development Incentive Agreement providing for the abatement of sales taxes for a period not to exceed ten (10) years or until $1,250,000 in Economic Incentive Payments have been paid by the County.
• The agreement also contained rights enabling Fair Oaks Land, LLC to transfer its interest in the Agreement to other franchised automobile dealerships.
• Fair Oaks Land, LLC sold the property to two auto dealerships.
• The incentive payments are proposed to be split evenly between the owners of the two parcels.
• 18834 Grand Building Corp is now the owner and operator of the 4.5 acres, and will operate Lakeside Ford LLC d/b/a Gurnee Ford-Lincoln-Mercury; and shall be eligible to receive a maximum abatement of sales taxes of $625,000 over a ten (10) year period.
Body
WHEREAS, the County recognizes the importance of maintaining a viable economic sector to enhance the long term viability of the tax base within unincorporated Lake County; and
WHEREAS, as part of these continuing efforts, the County and Fair Oaks Land, LLC entered into an October 11, 2005, Economic Development Incentive Agreement with respect to approximately 8.5 acres located on Grand Avenue east of U.S. Route 45 in unincorporated lake County; and
WHEREAS, the agreement provided for the abatement of sales taxes for a period not to exceed ten (10) years or until $1,250,000 in Economic Incentive Payments have been paid by the County pursuant to the terms of that Agreement, whichever occurred first; and
WHEREAS, the agreement also contained certain rights enabling Fair Oaks Land, LLC to transfer its interest in the Agreement to other franchised automobile dealerships or to another business that would generate at least the same amount of gross receipts; and
WHEREAS, Fair Oaks Land LLC has informed the County that it has sold approximately 4.5 acres of the 8.5 acres to 18834 Grand Building Corp. for operation of automobile dealership by Lakeside Ford LLC d/b/a Gurnee Ford-Lincoln-Mercury and sold the remaining approximately 4.0 acres to a third party for operation of a separate automobile dealership, and requested that the County consent to the transfer of the interest of Fair Oaks Land LLC in the October 11, 2005, Economic Development Incentive Agreement; and
WHEREAS, 18834 Grand Building Corp. and Lakeside Ford LLC d/b/a Gurnee Ford-Lincoln-Mercury are now the owner and operator of the 4.5 acres, respectively; and
WHEREAS, the incentive payments set forth in the October 11, 2005, Economic Development Incentive Agreement are proposed to be split evenly between the owner and operator of the 4.0 acre parcel and the owner and operator of the 4.5 acre parcel, such that 18834 Grand Building Corp. and Lakeside Ford LLC d/b/a Gurnee Ford-Lincoln-Mercury shall be eligible to receive a maximum abatement of sales taxes of $625,000 over a ten (10) year period; and
WHEREAS, in order to effectuate the transfer of the interest of Fair Oaks Land LLC in the October 11, 2005, Economic Development Incentive Agreement to 18834 Grand Building Corp. and Lakeside Ford LLC d/b/a Gurnee Ford-Lincoln-Mercury, the Health & Community Services and Financial & Administrative Committees herewith recommend that the County Board Chairman be authorized to execute a new Economic Development Agreement with 18834 Grand Building Corp. and Lakeside Ford LLC d/b/a Gurnee Ford-Lincoln-Mercury, a copy of which is attached hereto and made part hereof.
NOW, THEREFORE, BE IT RESOLVED, that the Chairman of the County Board is hereby authorized to execute an Economic Development Agreement with 18834 Grand Building Corp. and Lakeside Ford LLC d/b/a Gurnee Ford-Lincoln-Mercury, a copy of which is attached hereto and made part hereof.
DATED, at Waukegan, Lake County, Illinois, on this 18th day of November, A.D., 2008.