Northbrook, Illinois residents may have a new Tesla showroom at their doorstep as early as next year.
Construction is set to begin this fall, with the aim of opening a 48,000-square-foot sales, service, and delivery center by 2024, according to Village President Kathryn Ciesla.
The village board recently approved zoning and an economic incentive agreement for the Tesla showroom, located at 1200 Skokie Blvd. Tesla is expected to invest about $25 million in purchasing the property, developing it, and building the dealership. In return, the company seeks a total incentive of $1.6 million from Northbrook, reports the Daily Herald.
Village Attorney Steve Elrod said that the agreement is “very protective of the village,” as incentives will only be provided once Tesla is operational and the village starts receiving sales taxes. Elrod emphasized that there is no impact on property taxes for the village and other taxing districts.
For each $640,000 in sales tax revenue collected by the village, a rebate of $320,000 will be provided, with a maximum limit of $1.6 million. If the village collects $1,280,000 in sales taxes within a single year, the developer will receive a payment of $640,000.
Trustee Bob Israel noted that the incentive agreement is not unusual, stating, “It’s nothing that we haven’t seen before, this is just structured somewhat differently to address the development costs.”
Ciesla expressed her excitement for Tesla’s entry into the community, saying, “This is the option they favored, so we’re very happy to work with you on this, and we could not be more excited for you to come into the community.”
