Latest / Kendall County News - Shaw Local / HomeGoods plans to open new Oswego store by Christmas

Transcript

HomeGoods plans to open new Oswego store by Christmas · Kendall County News - Shaw Local

• 0:05
  Speaker 1: Home Goods plans to open new Aswego store by Christmas.
• 0:09
  Speaker 1: Written by Eric Shelcop, This article is being read by
• 0:12
  Speaker 1: an automated voice brought to you by Everlett. Just in
• 0:16
  Speaker 1: time for the Christmas shopping season. Home Goods plans to
• 0:19
  Speaker 1: open a new Home to Core store in Oswego. At
• 0:22
  Speaker 1: their April ninth meeting, Oswego Planning and Zoning Commissioners unanimously
• 0:27
  Speaker 1: recommended approval of the twenty five thousand square foot building
• 0:30
  Speaker 1: proposed in the Prairie Market East shopping Center at the
• 0:33
  Speaker 1: intersection of US Route thirty four and Fifth Street. The
• 0:37
  Speaker 1: store will be built between PetSmart and Aldi in the
• 0:39
  Speaker 1: shopping center. Oswego Village Trustees will now review the proposal.
• 0:43
  Speaker 1: Plans are for the store to open by Christmas. At
• 0:46
  Speaker 1: the December ninth Oswego Village Board meeting, trustees unanimously approved
• 0:50
  Speaker 1: a financial incentive agreement of up to one point five
• 0:53
  Speaker 1: million dollars with the owners of the shopping center that
• 0:55
  Speaker 1: would be paid over a maximum of fifteen years. The
• 0:58
  Speaker 1: agreement will start once the store is built. An occupancy
• 1:01
  Speaker 1: permit must be issued no later than July first, twenty
• 1:04
  Speaker 1: twenty seven. This deal just does not work without some
• 1:07
  Speaker 1: sort of assistance. Oswego Economic Development Director Kevin Lady told
• 1:11
  Speaker 1: village trustees, with no financial assistance, with the amount of
• 1:15
  Speaker 1: rent that Home Goods would pay, the developer would be
• 1:17
  Speaker 1: lucky to break even on their construction loan and then
• 1:19
  Speaker 1: subsequent mortgage. He also noted construction costs are high these days.
• 1:24
  Speaker 1: Some construction costs are up as high as forty percent,
• 1:27
  Speaker 1: some even more, Lady said. In addition to that, borrowing costs,
• 1:31
  Speaker 1: as many people know, are at an all time high.
• 1:34
  Speaker 1: Starting on the date of Home Goods as opening, the
• 1:37
  Speaker 1: village will rebate one hundred percent of the municipal sales
• 1:39
  Speaker 1: tax generated by the business for up to fifteen years
• 1:42
  Speaker 1: or a maximum of one point five million dollars, whichever
• 1:44
  Speaker 1: comes first. This project is expected to produce a substantial
• 1:48
  Speaker 1: amount of tax revenue, which would more than make up
• 1:50
  Speaker 1: for the proposed incentive, Lady said. During the incentive term,
• 1:53
  Speaker 1: the project will continue to generate an average of one
• 1:56
  Speaker 1: hundred and forty four thousand dollars annually in home rule
• 1:58
  Speaker 1: sales taxes. After completion of the incentive, the project will
• 2:02
  Speaker 1: generate a combined total of more than three hundred thousand
• 2:04
  Speaker 1: dollars inches annual sales taxes. Lady said that inclusive of
• 2:08
  Speaker 1: the one point five million dollar incentive, the project is
• 2:11
  Speaker 1: still anticipated to produce almost two million dollars for the
• 2:13
  Speaker 1: village through twenty forty. If the store closes or relocates,
• 2:17
  Speaker 1: they have to find a replacement tenant within two years,
• 2:19
  Speaker 1: he said. If they don't do so, fifty percent of
• 2:22
  Speaker 1: the incentive will have to be refunded to the village
• 2:24
  Speaker 1: within three years of the agreement and twenty five percent
• 2:26
  Speaker 1: refunded to the village after the third year, but before
• 2:29
  Speaker 1: the fifth year of the agreement, Lady said, we wanted
• 2:32
  Speaker 1: to give them ample time to find a replacement as
• 2:34
  Speaker 1: we want to continue to generate that revenue coming in
• 2:36
  Speaker 1: and additionally provide our residence with the place to shop,
• 2:39
  Speaker 1: he said,