Gary Lang buyer plans two new buildings at McHenry dealership

In the next 24 to 36 months, Castle AutoPlex CEO Joe Castle wants to add two new retail buildings at the former Gary Lang Auto Group in McHenry.

Those new buildings off Route 31 would give the dealership separate sales centers for the Kia, Mitsubishi and Subaru brands, Castle said this week.

His Castle Automotive Group purchased the Gary Lang dealerships Sept. 29. Although Castle declined to disclose the sale price, McHenry County Recorder’s Office records show a $19 million loan was taken out on the property.

Castle said that as part of construction plans, he will ask the McHenry City Council for changes to the 20-year sales tax rebate negotiated with Lang in 2009 and transferred to Castle AutoPlex as part of the sale.

Mayor Wayne Jett said Monday that a meeting was set for the following week with Castle to hear what he has in store for the dealerships.

The agreement as it stands now allows McHenry to keep the first $450,000 in sales tax taken in by the dealership. Then, 100% of the sales tax revenue goes back to the dealership, up to $750,000 each year. Once sales tax revenue exceeds $750,000, the city rebates 60% of the sales tax.

As of Aug. 31, about $3.9 million was left on the agreement, which is set to end by Jan. 19, 2029, or once the remaining balance is paid, McHenry Deputy City Clerk Monte Johnson said.

As of fiscal 2021, a total of $4,522,820 had been rebated to the dealership, according to city records.

By adding separate buildings for the import automobile brands, Castle said the dealership can stave off pressure from those makers to relocate to an area with a higher population.

“Some of the manufacturers want me to move their brands to Crystal Lake. That is a sore spot with me and the brands,” Castle said.

That is a common request by the manufacturers, Castle said, adding that he experienced similar pressure after purchasing an Indiana dealership. “Population-wise it was the best” location in the carmakers’ minds.

“That is not the case here. This is a destination” for car buyers, Castle said of the McHenry location.

He wanted the Lang property because of its location and room to expand, among other reasons, he said.

“Not only was it just ... a good operation from a financial standpoint, [but] you could tell by the way it was organized and the engagement with the team that there was more than just a business here,” Castle said.

Based on sales since the purchase, Castle said he thinks the import brands can do “twice the volume per year they were doing previously. I would like to keep them on the campus.”

The new car market, throttled by supply chain problems, has begun loosening up, Castle said. As a new dealership, Kia also allocated 150 of its new vehicles to him this fall.

“We had our best month ever,” selling 120 Kias out of the location, he said.

Supply chain issues also have delayed getting the signs switched over to the new owner’s name. Wraps for the signs on Route 31, as well as new electronic message boards, are coming, Castle said.

Completely new signs for the business may wait because of the Illinois Department of Transportation’s plans to widen Route 31, he said. That road construction project may push the signs 10 feet or more back from their current locations.

Existing sponsorships, including McHenry’s McBark Dog Park, will stay in place but with the Castle Auto Group moniker, Castle said.

“We will be following through with sponsorships that Gary has done and the events” while also looking for more events and programs to sponsor, he said.

“I am excited about McHenry, the community and the people. We are going to continue to be as involved as Gary was and find other opportunities,” Castle said, adding that if others have ideas for sponsorships, “we would love to hear from them.”