Elmhurst Dealership Gets $250K Tax Break

Elmhurst IL

03 August, 2021

4:50 PM

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ELMHURST, IL — An agreement to give an Elmhurst dealership a $250,000 sales tax incentive won unanimous support Monday from the City Council, including from an alderman who expressed concerns about it. Under the terms, the city and iMotorsports, 334 W. Grand Ave., agreed to a 50-50 split in sales taxes for a dozen years, allowing the business to get up to $250,000 to help redevelop the property. At the council meeting, Alderwoman Noel Talluto said it was important for Elmhurst to help grow businesses. "We have had a very business-friendly community over the last decade or so," she said. "This has definitely helped Elmhurst to be attractive to other businesses and new residents, as we have seen, which has added to the vitality of Elmhurst over time. I think that this intangible asset is important any time we consider any of these types of financial agreements." Alderman Bob Dunn, who heads the council's Finance Committee, was the only one of its four members who declined to sign the panel's recommendation for the incentive. He noted iMotorsports has entered two previous sales tax incentive agreements in the seven years it has been in business in town. "My position is that we have a very good business in town, and I'm happy to see them successful," he said. "I had some concern with a third request in such a short time. This at first appeared to be incremental growth of the business, as all businesses do. They grow, they invest in the business. Ninety-nine times out of 100, we don't even hear from those businesses as they grow." According to its proposal to the city, iMotorsports said it has an opportunity to add the Can-Am Off Road and Can-Am Sea-Doo brands. The nearest dealers are in Lake County's Lake Villa and northwest Indiana. The sales tax money is to be used for an outdoor showroom for the new lines, the company says. In the discussion, Alderman Mike Brennan asked whether iMotorsports would undertake the project without the incentive. Answering, Talluto said it was hard to know. "This is the poker game that the city of Elmhurst plays with any applicant, whether it's a (tax increment financing) incentive or a sales tax incentive or whatever it might be," she said. Dunn said Brennan's question touched on one of the concerns he had with the committee's recommendation. "I wasn't convinced that this was a situation where there was a hardship where the project would absolutely not move forward without (the incentive)," he said. "This looks to be incremental growth of a business. They are bringing in two new product lines, which is very exciting. My concern was that they appeared that they would potentially have done this without the tax incentive." The draft agreement gave a term of 10 years, but Dunn proposed to extend it to a dozen. That would mean iMotorsports would have to stay in Elmhurst longer or that it would have to pay back its incentive money. He said the company had indicated it would be fine with the change. The council voted 12-0 for the agreement with a 12-year term. Alderman Jacob Hill was absent, and another council seat remains vacant. Dunn couldn't be reached for immediate comment on his reason for voting for any agreement with which he had expressed concerns.