ST. CHARLES – On Tuesday, Audi moved another step into obtaining a $2.6 million incentive from the city to build a dealership and service facility on 3.38 acres along North Randall Road.
At the St. Charles City Council's Government Operations Committee meeting on Tuesday, aldermen recommended approval of the proposed sales tax sharing economic incentive agreement. Semersky Enterprises, Inc., which owns and operates the Audi Exchange and Porsche Exchange in Highland Park and the Chevrolet Exchange in Lake Bluff, proposes to develop a 25,600+ sq. foot Audi dealership and service facility on a 3.38 acre site at 235 N. Randall Road.
As part of the incentive agreement, the city and SEI would share the sales tax revenue generated from the property to cover the development costs associated with the project, including the extension of Woodward Drive and the installation of a traffic signal on Randall Road, remediation of unsuitable soils, and improvements to the electric infrastructure.
The cost of extending Woodward Drive along with Randall/Woodward intersection improvements, including traffic signals and storm sewer improvements, is estimated at $2 million. Electrical infrastructure improvements are estimated to cost $300,000 and the project would also require another $251,000 to remediate unsuitable soils.
As proposed, the sales tax incentive agreement would be in place for 15 years. The incentive will be paid through sales tax reimbursement, where the dealership will be rebated 75% of the sales tax generated by the dealership and the remaining 25% will be retained by the city.