LAKEMOOR – The village of Lakemoor has approved an agreement that will provide Woodman's Food Market up to $6 million in incentives over 15 years.
The company has plans for a 240,000-square-foot grocery store, gas station, convenience store, car wash and lube center on a 74-acre site at Routes 120 and 12, with room for future big-box retailers.
Village officials have contended the property has flooding issues that would take about $10 million to fix, and that no businesses will build on the land unless it’s developed.
“It’s very important because Route 12 and 120 is going to be a major commercial hub,” Lakemoor Mayor Todd Weihofen said of the incentive agreement. “Unfortunately, we don’t have the improvements we need in order to bring business there.”
According to the agreement, an incentive not to exceed $2 million would be paid to Woodman’s through sales tax revenue, and the village would reimburse Woodman’s up to $4 million for the cost of off-site work.
Off-site work would include adding lanes and signals at the intersection and improving the stormwater and sewer systems, Weihofen said.
Woodman’s will start receiving the payments the first year the business is in operation, according to the agreement. Half of the yearly sales tax generated by Woodman’s and the gas station will go toward the business.
One-third of each payment will go toward developer incentives, and two-thirds of each payment will be allocated to the off-site improvements reimbursement.
The village is hoping to pay for its portion of the site improvements, about $5 million, through a tax increment financing district on the site, Weihofen said.
The development process for the land previously was put on hold after a lawsuit filed by Wauconda taxing bodies over the TIF said it wasn't needed. Dean Krone, attorney representing the Wauconda taxing bodies, previously said in an email he anticipates parties will begin taking depositions at the start of this year.
The final purchase of the property still is pending, Weihofen said. Also pending is a development agreement that would include all the “nuts and bolts” of work that need to be completed, he said.
Weihofen said he hopes to see construction start at the intersection this year, and Woodman’s officials have said the store could open as early as 2019.