The auto dealership strip on Northbrook’s Skokie Boulevard is revving up now that Toyota is rebuilding near new neighbor Tesla.
With a heads up to Tesla about what’s down the road comes from Mike Leep, Jr., president of Gurley Leep Automotive Family of Mishawaka, Indiana, owner/end user of the Northbrook Toyota property being redeveloped.
“How does it feel for them (Tesla) to be in company with us is the question,” Leep said. “We’re Toyota. We sell more cars than anybody in the world.”
The current Toyota dealership on the 1500 block of Skokie Boulevard will join down-the-block neighbor Tesla as the latest in auto dealers planning to occupy slick new flagship dealerships as places of business.
Tesla plans to locate at 1000 Skokie Boulevard in a new one story dealership at more than 47,000 square feet with an open sales lot.
The Toyota plans include demolishing an existing and obsolete dealership, and building a new facility at 43,274 square feet for the sales and service of new and used Toyota vehicles.
“We’re excited,” Leep said. “This is probably going to be a $12 million project.”
The parcel at 1500 Skokie Boulevard (which has a five story office building) is rezoned via ordinance from general office district status to a C-5 boulevard commercial district.
“We’re going to actually level the building that we’re doing business in right now to create more parking,” Leep said.
Of the multi tenant office building next door, Leep told Pioneer Press, “As these leases run out, we’re going to tear that down to also create more display space for the dealership.”
As part of the approved Toyota redevelopment, the Northbrook Village Board of Trustees on Oct. 11 also said yes to a resolution for an economic incentive agreement between the village and the applicant.
Improvements to the Toyota space are expected to cost $9,726,974, under the $12 million investment Leep indicated to Pioneer Press.
According to village documents, the applicant projects an estimated $900,000 in additional sales tax revenue will benefit the village from vehicle and parts sales, on average, over the two decades following completion of the redevelopment project.
The more than $9.7 million build out calculation is being used to help justify a village rebate of 50 % of new sales taxes generated at the redeveloped Toyota dealership. The 50 % rebate ask and subsequently granted request assisting Toyota will occur in excess of sales tax receipts of $426,400 for 20 years or $9,726,974, whichever comes first.
“It’s really going to help us to be able to invest in the community,” Leep said of the incentive package. “It’s expensive to build car dealerships nowadays for sure and the electrical infrastructure, things, I mean, the costs have gone up and up.
“You know, it’s partnership,” Leep added. “If we’re not bringing more revenue into the community, we don’t realize anything from it.
“There was an opportunity here, great stores like this don’t change hands a lot, these are family run businesses,” Leep said. “Just the demographics of this market are fantastic for Toyotas and we’re just excited to be here.”
The Toyota site plan includes an initial 5 EV charging spaces.
“Nobody has built more electrified cars in the world than Toyota Motor Company,” Leep said.
According to the resolution’s verbiage, “The village has determined that the operation of the new Toyota dealership on the property will generate significant sales and property tax revenue for the village, as well as the school, library, and park districts that serve the village’s residents, and is consistent with, and will further the goals of, the village’s comprehensive plan.”
Of the projected opening for the redone Toyota dealership, “We’re probably about a year out, I would say,” Leep said.
“We want to snap our fingers and get this project done as soon as we can so we can get out of that old building.”
Northbrook Village President Kathryn L. Ciesla said the Tesla car dealership development, approved last month by trustees, did not include a sales tax rebate incentive for Tesla.
“Tesla has not asked for economic incentives right now,” Ciesla said.
“I think they (Tesla) have a different business model,” Ciesla said. “So maybe there are some other opportunities for us to work with them … who knows, we’ll figure that out, but I’m excited about Tesla as well. I think Tesla’s going to be great.”
Ciesla added, “Car dealers are a great source of sales tax revenue.”
The next village review step for Tesla is the Northbrook Plan Commission.
“We’ve got a long way to go,” Matt Hendy of Chicago said to Pioneer Press last month, speaking for joint venture Focus and Fort Union as project developer for tenant Tesla.
Cielsa also told Pioneer Press on Oct. 11, “Businesses are coming to Northbrook.
“Businesses are staying in Northbrook because Northbrook is cool,” Ciesla said.
Northbrook Village Trustee Johannah K. Hebl said, “When people go car shopping, they like to see what the options are,” and Northbrook is, “a perfect place to come on Skokie Boulevard to do your car shopping.
“It’s a mall for cars … exactly,” Hebl said.
Ciesla told Leep and the Toyota group of representatives, “Thank you so much for taking that property and investing in it.
“I can’t wait to see you guys get going.
“Thank you so much for investing in Northbrook and invite us for the ribbon cutting,” Ciesla said. “We’ll be there.”
Karie Angell Luc is a freelancer for Pioneer Press.