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- [S142] Newspaper Article, Chicago Tribune, 28 Jul 1989.
BOLINGBROOK OFFERS LOAN TO ATTRACT AUTO DEALERSHIP
Chicago Tribune July 28, 1989 Author: Ted Slowik.
Estimated printed pages: 2
Taking an innovative tack to attract new businesses, Bolingbrook has agreed to lend an auto dealer nearly half a million dollars to open a Ford franchise in town in exchange for a guarantee of sales tax income for the village. According to Mayor Roger Claar, the deal with Levy Management Inc., which already owns three imported-car dealerships in Bolingbrook, represents ``a win-win situation for everyone.`` ``It`s a guaranteed investment`` for the village, Claar said Thursday. ``And right now we`re not getting anything from the property in terms of sales tax dollars.``
Under the agreement, approved unanimously Tuesday by the Bolingbrook Village Board, Levy Management will get a $490,000 loan from the village`s reserve fund to build a Ford dealership at 301 N. Bolingbrook Dr., next door to the company`s three existing dealerships. The village, in turn, is guaranteed at least $220,000 a year in new sales tax revenue. For five years, half of that amount will go toward paying off the loan, at 8 percent interest, and the other half will become new income for the village, Claar said. ``We`ll put the $110,000 in our coffers to avoid (increases in) property taxes,`` the mayor said. Sales tax is a particularly useful form of income for the village, he pointed out, because it comes in every 60 to 90 days, unlike property taxes and other funds which arrive only once a year. After five years, when the loan is paid off, all the sales tax from the dealership will flow into city coffers, the mayor said. ``To my knowledge, we are the only village that offers this type of incentive,`` Claar said. The key to the loan program, created by Village Atty. Terry Moss, is that the dealer must sign a guaranteed letter of credit before receiving the money. That means ``there is no way the village can lose money. With this sales tax incentive, the bottom line is, we are guaranteed $655,000 in revenue over the next five years.`` The contract stipulates that if the village fails to get the agreed-upon revenue, it can demand immediate full payment of the loan`s balance. That makes the village`s investment as safe as money in a bank, Claar said, as well as earning the village a competitive 8 percent interest. Along the way, the village is also contributing to its own economic development and aiding other businesses such as gasoline stations and restaurants as more people come to town or stay in town to buy cars. Levy`s Mitsubishi, Subaru and Suzuki dealerships already generate about $300,000 of Bolingbrook`s annual $1.7 million of sales tax revenue, according to Joseph Levy, the company`s chairman. This is the third such loan Levy has received from the village. Similar agreements were approved in September, 1984, and May, 1987, for the other Levy dealerships. In each loan, the car company had no problem generating enough sales tax revenue to meet the agreement. The village also has used the loan program with one other auto dealer, Claar said. According to Levy, the $490,000 loan represents about two-thirds of the cost of getting his new business underway.
Edition: DU PAGE SPORTS FINAL Section: DU PAGE Page: 2
Index Terms: SUBURB; AGREEMENT; FINANCE; DEVELOPMENT; BUSINESS; VEHICLE
Correction: Additional material published Aug. 2, 1989:
Corrections and clarifications.
A story in some editions of the Chicagoland/Du Page section of the
July 28 Tribune incorrectly stated the ownership of a car dealership
under construction in Bolingbrook. Village Ford actually is owned by
Chris Lucente, though the land and building are owned by Joseph Levy,
who leases the site to Lucente. The Tribune regrets the error.
Copyright 1989, 2003, Chicago Tribune
Record Number: CTR8901020269
- [S142] Newspaper Article, Chicago Tribune, 2 Aug 1989.
Column: Corrections and clarifications.
Chicago Tribune August 2, 1989
Estimated printed pages: 1
A story in some editions of the Chicagoland/Du Page section of the July 28 Tribune incorrectly stated the ownership of a car dealership under construction in Bolingbrook. Village Ford actually is owned by Chris Lucente, though the land and building are owned by Joseph Levy, who leases the site to Lucente. The Tribune regrets the error.
Edition: NORTH SPORTS FINAL Section: CHICAGOLAND Page: 2 Column: Corrections and clarifications.
Copyright 1989, 2003, Chicago Tribune
Record Number: CTR8901010477
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