A suburban auto dealership is seeking property tax breaks ahead of redeveloping a long-vacant commercial building in Glenview.
The Glenview Village Board last month approved the execution of a redevelopment agreement with a company looking to turn the former Harley Davidson motorcycle dealership at 2929 Patriot Boulevard into a Genesis new and used auto dealership.
The agreement is the first step in the process of the auto dealership applying for a Cook County 7(b) real estate tax incentive, which will lower the assessment level of the redeveloped property and, ultimately, the amount of property taxes the company will pay for a period of 12 years.
The village will still need to formally approve a resolution in support of the dealership’s Class 7(b) application, as well as grant any approvals needed for redevelopment of the site.
Completion of renovations to the building is anticipated in December 2027, village documents indicate.
The former Harley Davidson building is owned by neighboring Costco and has been vacant since 2019, the village said. Costco plans to sell the property to the dealership operator, according to village officials.
Jeff Brady, director of community development for the village of Glenview, said plans call for the dealership to invest at least $6.8 million in improvements to the existing vacant building and surrounding site, which is why the property tax break is sought.
If approved by the county, the Class 7(b) incentive will lower the assessment level of the property from 25% of market value to 10% of market value for the next 10 years. Unless the incentive is extended, the assessment will increase to 15% in the 11th year and 20% in the 12th year, before returning to the 25% level, the village said.
The incentive is projected to generate $3.7 million in property tax revenue for the village over the next 14 years, which is about $649,000 less than if the redevelopment project does not move forward and the property remains as it is, the village said.
However, once the Class 7(b) expires, the property is anticipated to generate approximately $628,269 annually in property tax, more than double what it currently generates, officials said.
When the new dealership opens, its annual gross sales are projected at almost $84 million, with 70% of that amount subject to Glenview’s 1% local sales tax, Brady said.
This amounts to about $588,000 in sales tax revenue to the village annually.
To be eligible to receive the Class 7(b) tax incentive, a property must be considered “obsolete,” have “excessive vacancies,” have a declined assessed value, and be experiencing deterioration, according to stipulations from Cook County.
Brady told the Village Board that there are few options for the existing building in its current state.
“It’s basically a concrete bunker that was purposely built for the sale of motorcycles,” he said. “It’s not really conducive to anything else without substantial reinvestment.”
Glenview trustees were unanimous in their support of the redevelopment agreement that will begin the process toward bringing the new auto dealership to the community.
Trustee Tim Doron called auto dealerships a “golden goose” for municipalities due to the amount in sales tax they generate.
Glenview has supported previous Cook County 7(b) tax incentive requests, officials said. These include the Anixter office building at 2301 Patriot Boulevard, Anixter’s annex at 2591 Compass Road, and the original Astellas office buildings at 2375 Waterview Drive near I-294 and Willow Road, the village said.
The developer of a proposed industrial development on the former CVS headquarters at 2211-2255 Sanders Road is also interested in applying for a Cook County 6(b) real estate tax incentive. Like the 7(b) incentive, this would also lower the assessed value of the property for a period of 12 years.
Trustees at the Feb. 17 meeting voted to continue that matter before taking action.
