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Volkswagen dealership coming to Elgin’s Randall 90 Auto Mall

A snowy street view Randall 90 AuMall Elgwhere Volkswagen dealership hopes become second tenant. | Mike Danahey/Sun-Times Media

A snowy street view of the Randall 90 Auto Mall in Elgin, where Volkswagen dealership hopes to become the second tenant. | Mike Danahey/Sun-Times Media

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Updated: March 17, 2014 11:01AM

ELGIN — Another tenant finally will be making its way into the Randall 90 Auto Mall.

The city council has unanimously approved zoning modifications that pave the way for an unnamed Volkswagen dealer to occupy a half lot on the north end of the mall.

Currently, the lone tenant in the mall at the northwest corner of Randall Road and I-90 is McGrath Honda, which opened in the fall of 2009.

The city council approved development of the mall in December 2007 and granted developers $3.5 million from Elgin’s take of Grand Victoria Casino money for road improvement costs. The development deal also allowed dealerships within the mall to receive a 25 percent sales tax rebate.

According to reports, in late 2012, U.S. Bank filed a foreclosure suit in Kane County against developer Michael Rose and affiliates of Mokena-based Location Finders International for defaulting on a $23.7 million mortgage. Councilman Rich Dunne said that the council has been informed that a settlement on the matter is expected to happen in mid April.

Mayor David Kaptain said that a Subaru dealership in the process of being built further south along Randall had looked at the auto mall, but opted out in part because it had heard the foreclosure issues wouldn’t be settled for more than two years.

Brilliance Subaru made its first submittal of building plans to the city on Jan. 3. An economic incentive agreement approved by the city council with Brilliance Subaru of Elgin Inc. in the fall waived building permit fees and rebates 25 percent of the sales tax revenue generated by the dealership over 10 years.

Kaptain said city staff was in large part responsible for bringing Volkswagen to the table, while bringing Subaru to town was the work of the Elgin Area Chamber of Commerce and it’s economic development group.

“They all did a good job, This gives example of how economic development can work in Elgin,” Kaptain said.

Kaptain noted that easily half of all sale tax revenue collected by Elgin comes from auto dealerships, so the developments will add to the city’s budget. The dealerships also help the city’s economy by bringing more employees to town and through ancillary businesses related to them such as mechanics, body shops, and parts stores, Kaptain said.

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