Shorewood wins tax break for $100M suburban Chicago development
Tesla-anchored mixed-use development scored $11M in TIF funding
Louis Schriber III won the tax break his development firm needed to move forward on a $100 million suburban Chicago residential project, where a Tesla sales and service station is also planned.
Schriber’s Shorewood Development Group snagged key financial support from Buffalo Grove, the Daily Herald reported. The village board approved a commitment of $11 million in tax increment financing funding for the redevelopment of the former Rohrman auto dealership property on Dundee Road.
It’s an important step forward for the site that has been vacant for and unused for nearly 14 years.
Shorewood’s project is set to transform the property into what it’s calling Bison Crossing — a mixed-use project featuring a 50,000-square-foot Tesla sales and service center, additional retail space and a 224-unit apartment building.
Shorewood expects it will cost $100 million, and the $11 million in tax increment financing will be used to help cover up-front development costs that the firm will incur while making public improvements for the project. The development faces significant costs related to site preparation and infrastructure.
The village’s assistance is contingent on the developer meeting specific benchmarks tied to the Tesla and apartment developments, Buffalo Grove Community Development Director Nicole Woods said.
In the newly created tax increment financing district meant to foster the development, the area’s property taxes paid to local governments are frozen at their current level for the next 23 years. Any taxes collected above that level, due to rising property values, will be allocated to a fund controlled by the village to finance additional improvements, both public and private.
The village is not increasing taxes or incurring debt for the project, and it will receive all of the sales taxes generated by the property, Woods said.
Once the redevelopment agreement is signed, a lease with Tesla will be executed. Construction bids and financing are already complete. The property’s closing is anticipated by the end of the month, with demolition starting in February and set to last about 30 days.
Tesla’s construction is slated to begin in April or May, with completion slated for April 2025.
Fitzgerald also mentioned ongoing discussions with potential tenants for the other retail component, which was previously reported to be planned for between 20,000 and 30,000 square feet. The prospects include grocery, medical and fitness businesses.