St. Charles Council OKs $70,000 Incentive Deal

A proposed incentives deal to draw new jobs and new tax revenue into the city received the support of the St. Charles City Council on Monday, four months after the city’s Economic Development Department first pitched the plan at a much higher cost to the city.

Instead of $250,000 in tax breaks as proposed in January, the City Council on Monday agreed to reimburse $70,000 from the 1 percent municipal sales tax the business over the next five years. The reimbursement is expected to cover costs Lone Star-Cardinal Motorcycle Ventures III LLC, doing business as Windy City Triumph, expects to incur in leasing and building out 5,000 square feet of underused space at Fox River Harley-Davidson, 131 S. Randall Road.

The proposal would add another high-end motorcycle product at the business location. Windy City Triumph has estimated total sales in St. Charles store would be $18.5 million over the first five years. The staff memo on the deal states the projected income includes sales of new and used motorcycles, parts and accessories, general merchandise and motorcycle service.

Windy City Triumph estimates its costs of building out and occupying the space will be slightly more than $70,000, the staff memo to the council states and has asked the city to reimburse as much as half of Windy City Triumph’s sales tax revenue over the the next five years — or less. The reimbursements would continue annually fr as long as five years, or until the reimbursements total $70,000 — whichever happens first.

The staff memo to the City Council stated that without the financial package, the Triumph dealership would not relocate to St. Charles. With the deal in place, Windy City Triumph locks itself in to committing to at least a 10-year stay in St. Charles.

Related:

• Jan. 14, 2013:

Let Patch save you time. Our free newsletter can be delivered to your inbox. Fast signup here.

Then like us on Facebook and follow us on Twitter at @StCharlsILPatch.