A Honda dealership that sells motorcycles, scooters, all-terrain vehicles and utility vehicles is planning to move from Des Plaines to Barrington, whose village board approved an economic incentive agreement Monday night.
Des Plaines Honda expects to change its name to DSP Honda when it moves to 1201-1203 S. Northwest Highway in Barrington, a building the dealership wants to buy under a pending contract, dealership owner Jeff McLennan said.
The dealership leases warehouse space in the building, and the rest is occupied by Roadster Salon, which is moving to Palatine.
McLennan said moving the Honda dealership to Barrington will bring retail and warehouse operations into one building. "Our goal here is to be able to offer our customers a better experience and be able to grow our ATV and UTV segments, something that we can't do in Des Plaines," he said.
The dealership is expected to bring 20 to 22 new employees to Barrington, village officials said.
Under the village's agreement, the dealership will keep 60% of the sales tax revenue it generates for 10 years or until that amount reaches $375,000, whichever comes sooner. The dealership can only use that money for capital expenses such as improvements to the building, site and parking lot, Village Manager Scott Anderson said.
"We are bringing in a new business with a strong customer base to the Barrington area," Anderson said, adding the village is focused on building business along its Route 14 corridor. "We know that they will be able to bring customers that will generate additional economic development because they will, hopefully, fill up on gas, eat and shop in Barrington as well."
The additional sales tax revenue will be a near-net gain because Roadster Salon brought in "a pretty small amount" of sales taxes to the village, Anderson said.
Roadster Salon, whose specialty is selling restored convertibles, has occupied the Barrington building for six years, said owner Ray Marchica, whose father founded the business. Marchica said he plans to start moving out beginning next week into a building on Vermont Street in Palatine.
The Barrington building is owned by Chicago Title Land Trust Company, whose beneficiary is Dobe Agency, LLC, village documents show. Dobe Agency filed a lawsuit April 1 claiming Roadster Salon owed back rent, according to Cook County circuit court records. Marchica said he expects a settlement in the lawsuit, possibly Wednesday.
Dobe Agency attorney Alex Moskovic didn't respond to a request for comment Tuesday.
Marchica objected to the characterization that Roadster Salon hadn't paid rent, saying the business had been on a month-to-month lease and wanted to move to a larger space that also can better accommodate safe social distancing with COVID-19. "Everything is fine," he said.
Meanwhile, Honda's McLennan -- who said he's not involved in the lawsuit -- plans to begin remodeling the Barrington space next month and hopes to move in sometime in the first quarter of 2021.
"We are very excited about this move into this facility," he said.