Tinley to Give Incentive Deal to Apple Chevrolet

If the full board approves a measure passed in committee this week, Tinley Park will be giving Apple Chevrolet $350,000 of the new sales tax money it hopes a renovation will bring in.

This week, the village board's Finance and Economic Development Committee approved a tentative incentive agreement that would help the dealership meet new requirements Chevy is demanding. If all goes according to Chevrolet Motor Division plans, the $1 million in facade and showroom improvements will mean $10 million more in taxable sales.

Since the $350,000 would come from new sales tax revenue, that means Apple won't get any money until those new sales start appearing.

"They don't get a penny until they perform," village Economic Development Director Ivan Baker said.

Chevrolet is requiring Apple conform to a new "Image Program." This means the dealership will have to do about $1 million in improvements to its facade, showroom, office areas and the like in hopes of keeping the Chevy franchise agreement, according to a letter dated April 6 from the dealership to the village.

Incentive deals like this give the business a portion of the new sales tax it will bring in. When an incentive deal brings a new business to town, all the sales tax is new sales tax.

But when an incentive deal is on an existing business, the village has to figure out what's new. In the case of Apple, which has been in Tinley Park since 1975, the village looked at the average of the four prior years' sales tax money, Treasurer Brad Bettenhausen said. Everything above that average will be considered new money brought in by the improvements.

Sales tax revenue makes up about 28 percent of the village's general fund budget, according to numbers released in the recent budget sessions. Of that, car dealerships make up an "astronomical" portion, Trustee Greg Hannon said.

"If we can help a car dealership stay in Tinley Park, relocate in Tinley Park, the sales tax revenue for that outweighs the cost," Hannon said.