Naperville City Council voted to enter into a sales tax sharing incentive agreement with Costco.
Costco Says Incentive is Needed
Costco plans to purchase an 18.5-acre site in the East Ogden Avenue corridor to open its second Naperville location. But to make the store financially viable, they say they need help from the city.
“Costco has what I have characterized as a moral approach to incentives. We ask for incentives when we need them,” said Costco President of Intrepid Properties Mike Stratis. “When we can afford the project without incentives, we don’t ask for them.”
Council voted unanimously to rebate 75% of sales taxes to the superstore, up to $5.5 million. City staff estimated that will take five years to pay off.
Some Opposition
Some residents opposed the plan, as it would displace several current businesses, including Classic Cinemas Ogden 6 Theatre.
An online petition to “Save Ogden 6 Theatre” has garnered more than 21,000 signatures as of this recording.
Financial Estimates
If the city’s financial estimates for the tax sharing plan are correct, Naperville should bring in more than $3.5 million in taxes over the rebate period, and an additional $1 million per year after the rebate is paid off.
City Manager Doug Krieger said the city and the Naperville Development Partnership are actively working to find a new home for the Ogden 6 Theatre and other businesses that will be forced to leave.
Naperville News 17’s Casey Krajewski reports.
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