East Dundee officials are offering tax incentives to assist Speedway LLC with building a state-of-the-art gas station in the village's Terra Business Park.
Village Administrator Bob Skurla said the Ohio-based company intends to begin construction this year on the fueling center, which includes 10 gasoline pumps, four diesel fuel lanes and a 4,600-square-foot convenience store and a "Speedy Cafe." The project is expected to generate about $400,000 per year in sales tax revenue.
A development agreement approved this week by the village board calls for the $9 million project to be complete by the end of next year, though officials hope the gas station will be built and fully operational sooner. Speedway representatives declined to comment on the project.
Through that deal, trustees have also agreed to reimburse Speedway for 41 percent of incremental tax revenue generated by the gas station for up to 15 years, capped at the lesser of 25 percent of project costs or $2.5 million. The company cannot recoup more than $200,000 annually, according to the agreement.
Speedway, which is simultaneously undergoing several other projects, requested financial assistance from the village through business development district taxes, home rule sales taxes and shared sales tax rebates. The East Dundee project likely wouldn't have moved forward without municipal involvement, Deputy Village Administrator Jennifer Johnsen said earlier.
The gas station will create 35 full- and part-time jobs, including four managerial positions, village documents show.
Speedway should be finalizing the purchase of the property at Route 72 and Christina Drive this month, Skurla said. Project plans include improvements to that intersection and new signalization for easier access into and out of the business park.
Village officials say the fueling center is also expected to attract complementary businesses, such as a car and truck wash, along Route 72.