by Susan O’Neill
The Village Board approved an annexation agreement for the 44-acre Prairie Grove Commons commercial development on Tuesday, a center on the west side of Route 47 and Galena Boulevard extended, where the Walgreens is expected to open a store.
Village officials also approved the final plan for the Walgreens store, even though the company has delayed its construction to 2012.
The village’s hope is to attract big box stores to the property south of Galena Boulevard; to that end, the annexation agreement includes a sales tax rebate for the property from Galena Boulevard south to Route 30.
“It’s a win-win for everyone,” said attorney James White, who represents the developers.
He explained that the agreement gives the developers an incentive with which to attract retailers to a “green” area, one in which little development currently exists. In addition, the village receives a share of the sales tax, and the School District receives its share of the property taxes.
The term for the rebate agreement is 14 years. The clock starts ticking either two years from the signing of the annexation agreement or when the first occupancy permit is issued, whichever comes first.
The amount the retailers receive back is higher (1.25 percent of sales) for the first four years, to offset the costs of infrastructure associated with the development. The percentage is reduced for the remaining 10 years, with the village receiving 1 percent and the retailers receiving the other 1 percent.
When the 14 years are up, the village receives the full 2 percent of sales in taxes. The Walgreens store is not included in the sales tax rebate agreement.
The Walgreens store and drive-through pharmacy will be located at the northwest corner of Route 47 and Galena Boulevard.