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Politics & Government

Mariano's Developer Will Not Ask for Sales Tax Rebates

But TIF funds will be sought for store's opening.

Most of the numbers have yet to be put on paper, but Mariano's Fresh Market will likely seek $1.5 million from a to help offset opening costs, the city's Finance, Council Affairs and Administrative Services Committee learned Monday.

City and Mariano's representatives unveiled on Friday. Located at the old Ford dealership at North York and Industrial Drive, the Elmhurst store is one of 20 locations planned for Mariano's, part of the Roundy's chain of supermarkets. Other stores are open in Chicago, Palatine, Vernon Hills and Arlington Heights.

Dean Kelley of Abbott Land and Investment, the group that will build and lease the store, told the committee that his company expects to invest $18 million to $20 million in the project, including land costs.

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Currently, the group is working with the state to solve environmental issues on the site. The store is expected to generate $10 per square foot in sales each week, or about $35 million to $50 million a year.

Although Abbott is still putting together its request for TIF help, the funds would be used for demolition and land costs. Mariano's, Kelley said, has had financing help in some form from the five towns in which it now operates stores. He added that his company will not ask for any sales tax rebates from the city.

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Seventh Ward Alderman Mark Mulliner told Kelley that he had never seen a development start out as a public announcement and then proceed to city staff and council. This “backwards” approach “concerns me,” Mulliner said.

Kelley acknowledged that there might be questions as to why Mariano's needs an incentive when they have already expressed a desire to come to Elmhurst.

City Manager Jim Grabowski told the committee that studies for a TIF district on North York Road “lagged behind” the plan for Mariano's. TIF districts, which are used to redevelop underperforming areas, use special funds to make investments and upgrades.

Mariano's hopes to break ground this summer and open early next year.

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