The Village Board has approved a lease agreement with Volvo of Oak Park to store its used cars temporarily at a downtown Oak Park garage.
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“We did an analysis of locations we have and felt confident that for a 60 to 90 day period that we could utilize the upper level of the Holley Court parking garage,” said Pavlicek. “In talking with the [dealership’s new owners] we really did feel this is a short-term option, as we would need to go to our market rate if they go past that 90-day time period.”
A motion approved Monday grants the dealership the use of the top floor of the Holley Court Garage, 1125 Ontario St., to store no more than 100 of its used cars for a period of 60 days. Over that period, the dealership will pay the village $3,500 per month until the contract expires on May 22. The dealership is also required to have liability and property damage insurance liability of $1 million. If the dealership needs more time to find a permanent storage option for their used cars, then the village would renew the contract with a higher rates over each new contract period, eventually increasing to the village’s market rate, said Pavlicek.
Volvo of Oak Park features a seven-story glass display tower filled with cars at 1140 Garfield St., visible to anyone driving past on the Eisenhower Expressway. It was sold to Autobarn of Evanston earlier this year by its previous owner Antonio Scalzo, who took a $550,000 loan from the village as part of a business retention agreement before deciding to sell it to Autobarn two months later.
As part of the sale, the dealership’s new owners were given a new deal by the village, a forgivable loan of $1 million for 15 years at a 5 percent annual interest rate. One third of the loan would be forgiven every five years a long as Fisher maintains ownership and the dealership remains operational. The Garfield TIF would be the source of the loan cash.
“For the record, when did they approach us about their need for excess storage? Because I know that was something that several of us had our eye on when we were first reviewing the loan,” said Trustee Adam Salzman.
Pavlicek told Salzman she was notified of the new owners’ need of storage of their used car inventory the day after the village approved the loan agreement on Feb. 2. Trustee Bob Tucker said that as long as the storage agreement helped the dealership’s new owners to pay their loan back to the village, he was okay with it.
Because the owners weren’t at the meeting, Village President Anan Abu-Taleb wanted to table the matter until the dealership owners were available to speak to the board.
“I’m disappointed that they’re not here today to answer our questions. … If it’s so important why aren’t they here today?” Abu-Taleb asked.
Among his questions: How many times a day cars would be taken to and from the parking garage and what assurances they had to prevent traffic issues in the area around the parking lot with the movement of their cars during rush hours. He added that he didn’t want the businesses around the parking lot to be negatively impacted because of the agreement with Autobarn.
“It doesn’t seem like they’re serious about what they’re asking for. If it was me, I’d be here,” said Abu-Taleb.
Pavlicek said the board could hold off on the vote and reconvene at a special meeting, but it would impact not only Autobarn’s timetable to open but also the village’s other scheduled meetings.
Abu-Taleb was the only Village Board member who voted against the motion Monday. All other trustees at Monday’s meeting voted in favor the motion with an amendment to allow the village to break the contract within 14 days if “things aren’t going well” with the dealership. Trustee Colette Lueck was absent.
Alex V. Hernandez is a freelance reporter for Pioneer Press.