CALUMET CITY | The City Council last week approved payment of just over $250,000 to the developer who got a Sam’s Club warehouse store to locate in the River Oaks West shopping center.
Aldermen voted 7-0 with no discussion to approve a payment of $257,917.01 to JLP-River Oaks West LLC.
That is almost half the municipal and home rule sales taxes for 2012, as calculated by the city treasurer’s office from information provided by the Illinois Department of Revenue.
Under an agreement negotiated by the city with the developer in 2007, the city is entitled to the first $200,000 in sales tax revenues collected annually. After that, Calumet City must give 43 percent of the tax revenues to the developer.
That annual payment was part of the deal that encouraged Sam’s Club to relocate from Lansing to Calumet City in 2009.
It is similar to quarterly payments made by the city to Kimco Realty Corp., which handled the redevelopment of stores in the remainder of the River Oaks West retail complex in the mid-2000s. That deal has been in place since April 2004 and is to remain for a decade.
In other business, the council approved three separate payments for leasing copy machines for the aldermen. The city will pay $3,538.80 to Des Plaines Office Equipment for the lease for the 1st Ward, $2,388 to Business Machine Agents for the 3rd Ward and $2,389.30 to LEAF for the 7th Ward.
Aldermen also awarded a contract to J&J Newell Concrete Contractors Inc. for the city’s sidewalk and concrete program. The Burnham-based company will receive $137,650 for the work, the lowest bid of four contractors.
The city also will pay $1,000 to Thornton Township as a share of support for the job fair to take place May 21 at South Suburban College in South Holland.