Cal City makes required revenue-sharing payments to area businesses

2014-03-27T23:45:00Z Cal City makes required revenue-sharing payments to area businessesGregory Tejeda Times Correspondent
March 27, 2014 11:45 pm  • 

CALUMET CITY | The City Council gave its approval Thursday to payments totaling about $370,000 to four area businesses as part of agreements negotiated years ago to attract those businesses to Calumet City.

Beneficiaries of those payments are the companies that own the Sam’s Club warehouse store, along with the Sonic Drive-In near the River Oaks Shopping Center, along with Cadillac- and Toyota-brand auto dealerships.

In all the cases, the city attracted those companies to come to Calumet City by agreeing to share the city’s portion of sales tax revenues with the local business.

Aldermen voted 5-0, with 3rd Ward alderman Thaddeus Jones and 6th Ward alderman Nick Manousopolous absent, to approve a measure that gave approval to a $255,601.03 payment to JPL-River Oaks West LLC, which owns the Sam’s Club, 603 River Oaks West.

That payment represents 43 percent of municipal and home rule sales tax revenues received by the city beyond the first $200,000 during the 2013 calendar year. City officials calculated the payment based off information provided by the Illinois Department of Revenue.

The agreement was negotiated with JPL back in 2007, and were part of the deal that got Sam’s Club to relocate its Lansing store to the River Oaks West shopping center in 2009.

SDI Calumet City LLC also was given a payment of $16,177.35. The real estate developer was the company that brought the Sonic drive-in to River Oaks, and represents 50 percent of sales tax revenues for 2013.

The developer has an agreement with the city to get that share of tax proceeds for 10 years. It has received such payments since 2011.

At the time of the agreement, the developer said it wanted the tax rebate to help compensate it for expenses it incurred during construction related to storm water management because of the presence of the Little Calumet River at the southern edge of the River Oaks property.

River Oaks Toyota and Napleton River Oaks Cadillac, Inc., also have agreements with the city requiring sales tax revenue sharing.

The Toyota dealership will receive a $67,130.60 payment for 2013, while the Cadillac dealership will receive $33,370.38.

Napleton Cadillac negotiated the deal with municipal government when they moved their dealership in Hammond to 1777 River Oaks Drive in 2012, pairing it up with the Lincoln dealership they already operated in Calumet City.

River Oaks Toyota negotiated its agreement in 2007 with the city to provide payments from sales tax revenues for either 10 years, or up to $1 million – whichever comes first.

In other business, the City Council also approved payments of $23,821.33 and $5,120 to Wayne, Pa.-based Sungard Public Sector, Inc., for the purchase and installation of a backup solution for the city’s computer server. Earlier this month, city officials held off on approving the payments because they were for work done last summer.

Also, aldermen approved payment of $12,128 to South Elgin-based Air One Equipment for bunker gear the city purchased for its Fire Department.

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