HomeMy WebLinkAboutRESOLUTION - 67-25 - 12/16/2025 - CASTLE CHEVROLET NORTH, INC. COST RECOVERY AGREEMENTRESOLUTION NO. 67-25
A RESOLUTION AMENDING RESOLUTION NO.26-15 AND RESOLUTION NO.6-23
RELATING TO ECONOMIC INCENTIVE PAYMENTS TO CASTLE CHEVROLET
NORTH, INC. (CASTLE) AS ESTABLISHED IN THE COST RECOVERY AGREEMENT
DATED MAY 12, 2015
WHEREAS, the Village Board has previously entered into a Cost Recovery Agreement with
Castle pursuant to Resolution No. 26-15 as amended from time to time by Resolution No. 70-17,
Resolution No. 2-23 and Resolution No. 6-23; and
WHEREAS, Castle has advised the Village of its intention of selling Castle's property for
redevelopment and the Village has advised Castle of the Village's desire to retain a car dealership in
the Village; and
WHEREAS, after further discussions and considerations of the parties, an amendment to the
economic incentive provisions of the Agreement was reached assuring the property would
conditionally remain as a car dealership for a minimum of five years commencing January 1, 2026.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Board of Trustees of the
Village of Elk Grove Village, Counties of Cook and DuPage, State of Illinois as follows:
Section 1: That the Section 4c of the Cost Recovery Agreement between the Village and Castle
be amended to read as follows:
4c Economic Incentive- The Village agrees to pay an amended Economic Incentive to Castle in
exchange for Castel agreeing to remain in business and not sell its property, if applicable, to an
entity other than a car dealership. The amendment will extend the agreement to December 31,
2030 and provide for the incentive as follows:
YEAR
THRESHOLD
PERCENTAGE OF MUNICIPAL SALES TAX REVENUE
TO BE REBATED TO CASTLE AFTER THRESHOLD
2026
$100,000
50%
2027
$100,000
50%
2028
$100,000
50%
2029
$100,000
50%
2030
$100,000
50%
The rebate will be due and payable solely from proceeds of Municipal Sales Tax Revenues
actually received by the Village from the State of Illinois.
During the five year extended period, should Castle decide to sell the dealership to an entity
other than an equivalent car dealership, then and in that event, the Village shall have a thirty -day right
of first refusal to acquire Castle's property. The Incentive Payment to Castle for the period June 1,
2025 to December 31, 2025 will be pro -rated based on current Exhibit B of the agreement.
Section 2: All remaining terms and conditions of the agreement not inconsistent with the
provisions herein shall remain in full force and effect.
Section 3: That this Resolution shall be in full force and effect from and after its passage and
approval according to law.
VOTE: AYES: 5 NAYS: 0 ABSENT: 1
PASSED this 16 day of DECEMBER 2025
APPROVED this 16 day of DECEMBER 202
APP
Mayor Craig . Johnson
Village of E Grove Village
ATTEST:
AW�01 b•
JeAaWr S. ahen, Village Clerk