The Lake Zurich village board approved a sales tax rebate for $1.55 million to the developers of Bradford Town Crossing at a special meeting, Monday. Bradford Town Crossing, at Quentin Road and Route 22, will be home to Mariano's Fresh Market, McDonald’s and other businesses.
The developers asked for the rebate to fund off-site public improvements including extension and installation of public works and sanitary sewer to the site, access from Quentin Road and a left-turn lane off Route 22.
Trustees voted unanimously to approve the economic incentives, however there was some debate over the impact of the tax incentives.
Trustee Jeff Halen wondered how much additional revenue Mariano’s would garner.
“For the good or the bad Lake Zurich has so many grocery stores. Are we going to be taking from Dominicks, Aldis and Trader Joes,” he said.
The developer projects that Mariano’s will have a regional draw. Building and zoning director Dan Peterson said his office has already had calls from people from Antioch, Round Lake and Villa Park asking when the Mariano’s was going to open.
“The net benefit is going to be greater than the potential loss,” Peterson said.
Jodie Andrew, finance director, said if Mariano’s attracts customers from outside Lake Zurich, those people may also stop at other Lake Zurich retailers and restaurants.
“Overall, the preliminary estimates are that, overwhelmingly, it will help the village as a whole, not just the Mariano’s property,” Andrew said.
The agreement is for 35 percent of the collected sales tax from the development to be rebated back to Bradford over 20 years. The developer's projection is that the refund will take 12 years.
Peterson said if the Lake Zurich Mariano’s is as successful as the other Mariano’s stores, the refund could take nine to 10 years.
The Mariano’s store is expected to open in January of 2014.