LANSING | Trustees essentially sealed the deal this week to lure a Calumet City auto dealer to Torrence Avenue.
The Lansing Village Board granted the proposed Napleton Honda, currently operating as River Oaks Honda in Calumet City, a valuable package that will likely reduce its property taxes by more than $120,000 a year and eventually cover its relocation costs with sales taxes.
River Oaks Honda plans to move to the former Martino Oldsmobile, 17220 Torrence Ave.
On Tuesday, trustees approved a revenue-sharing agreement for sales taxes, vacated part of an alley for the dealership and asked Cook County to reduce property tax assessments on the property.
"These kinds of actions are absolutely crucial to attracting developers of the caliber of River Oaks Honda," Village Attorney Dale Anderson said. "This is a first-class automobile operation. Municipalities are very fortunate if they can attract these kinds of commercial enterprises."
Lansing would not be able to attract the dealership without offering sales and property tax breaks, Anderson said.
"You have to be able to offer concessions," he said. "Even with concessions, this is very much positive for the community because it will generate sales taxes and it will put the property back on the tax rolls."
The sale tax plan will give Lansing the first $100,000 in local sales taxes, return the next $100,000 to Napleton, and split any additional such taxes until the company's relocation expenses are repaid.
Trustees recommended Napleton for Class 8 status, which is almost certain to gain formal approval from the Cook County Board.
Class 8 would cut Napleton's property tax assessments by up to 58 percent for 12 years. David Sosin, an attorney for the dealership, estimated it would cut Napleton's property taxes in half to about $120,000 to $150,000 a year.
The alley in question was not being used as an alley, but had been dedicated as one, Anderson said.
The revenue-sharing agreement contains the same terms proposed in December, he said.
"It's virtually the same form that had been transmitted to trustees for review," Anderson said. "There would be no substantive changes without coming back to the board."
