The Kelly Nissan dealership in Oak Lawn is remodeling its showroom knowing that it can be partially funded with sales tax dollars.
The Oak Lawn Village Board this week unanimously approved a 12-year economic incentive agreement with the Nissan dealership, at 4300 W. 95th St., that would rebate some of the sales taxes the village otherwise would receive, beginning Jan. 1.
“Kelly Nissan is planning to remodel the first floor of their building which includes a show room,” said Oak Lawn Assistant Village Manager Jerry Dillon.
“As a result of this investment, Kelly Nissan is expecting an increased allotment of automobiles for sale from the manufacturer,” Dillon said.
More cars and trucks on display could mean more vehicles sold and serviced at the dealership, which would result in more sales tax revenue for the village, as well as for the county and state.
Oak Lawn is flush with auto dealerships, having 12, including CarMax.
“Auto sales are an important part of our budget,” said Mayor Terry Vorderer.
To induce dealerships to remain and expand in Oak Lawn, the village has agreed to rebate some of the sales taxes customers pay.
In the agreement approved Tuesday, the village will retain the first $275,000 in sales taxes it receives each year from Kelly Nissan. But the village will split 50-50 with Kelly Nissan the local sales tax generated between $275,001 and $375,000 each year.
The dealership also will receive 75% of any local sales taxes above $375,000, with the village keeping the remaining 25%.
So, for example, if the dealership generates $500,001 in Oak Lawn sales tax in any one year during the 12-year agreement, Oak Lawn will get $356,250 of that amount and Kelly Nissan will get $143,751.
The total taxes rebated during the life of the agreement is capped at $750,000.
Earlier this year, the village agreed to another 12-year sales tax sharing arrangement with Napleton Cadillac, after Napleton committed to building a new facility to replace the old Shirey Cadillac dealership at 10125 S. Cicero Ave. The terms of the rebate for Napleton were slightly different from the amounts and percentages in the deal with Kelly.
Oak Lawn also has financial incentive agreements with two other auto dealerships in the village, Webb Chevy, at 9440 S. Cicero Ave., and Berman Chrysler Dodge Jeep Ram, at 4630 W. 95th St., Dillon said.
“All dealerships receiving an incentive agreement commit to upgrading their building and/or infrastructure to be more competitive in their auto sales,” Dillon said in an email.
Garbage rate hike
Effective Oct. 1, Oak Lawn residents will pay 5% more for garbage pickup.
The rates for most homes and businesses will be $24.36 a month, or $73.08 per quarter, instead of the $69.60 now billed quarterly.
Residents over the age of 65 and people with disabilities will pay the senior rate of $21.41 a month or $64.23 per quarter. Seniors and residents with disabilities are now billed $61.17 per quarter.
The price for nonresidential customers is the same as that for residents under 65, $24.36 a month, or $73.08 per quarter.
The village is continuing to contract with Allied Waste Transportation Inc., doing business as Republic Services of Crestwood, for its waste hauling. The contract covers removal of garbage, rubbish, recyclables and one large item, such as a sofa or television, per week.
