The city will give a neighboring auto dealer a $325,000 sales-tax rebate for moving his dealership from Villa Park to Elmhurst, officials said Monday night.
Under a pact approved unanimously by the City Council, William D. Moreland will relocate his North Avenue Honda, at 100 E. North Ave. in Villa Park, to 300 W. Grand Ave. in Elmhurst in exchange for a $325,000 rebate that will be paid out during the next two to six years. During the first year, the city and Moreland will each receive one-half of the dealership’s sales-tax revenue. Each year thereafter, the city will keep the first $200,000 in sales-tax revenue and split the remainder with Moreland until the $325,000 is reached.
Council members said they were pleased with the agreement.
“Keeping our sales tax base solid, in terms of auto dealerships, is good,” said Ald. Janice Vanek, chairman of the council’s Finance, Council Affairs and Administrative Services Committee. “This can benefit both the city and a merchant.”
Moreland had initially requested a $694,000 rebate, but officials thought that was too much.