Hyundai is planning to build a permanent facility in Libertyville at 1001 S. Milwaukee Avenue. Village Officials are set to approve Libertyville Hyundai's request for a new facility on a vacant property just north of Libertyville Chevrolet and south of Advocate Condell Medical Center.
The Daily Herald reports that Libertyville Hyundai is a newcomer to the Libertyville Mile of Cars, which is a marketing organization for local dealers. Their website lists a dozen dealerships selling 17 new vehicle brands.
Libertyville Hyundai has been leasing a temporary site at 1119 S. Milwaukee Avenue. This was a former Mitsubishi dealership that had been vacant for about four years.
The owners of Libertyville Chevrolet also own the Hyundai dealership and the property to the north.
CESM LLC and Ed & Leo LLC want to divide an 8.7 acre parcel to create a 4 acre lot where a 26,900 square foot Hyundai dealership would be built.
Hyundai sought several variations from the village codes including:
- A reduction in the lot width from 250 to 215 feet
- A side yard reduction for the building and parking
After two public hearings, the village's advisory plan commission recommended the approval of a special use permit and also a concept and final plan, including dividing the lot which would also be subject to various conditions.
On March 8th, the village board accepted the plan commission's report and they are expected to approve the ordinance. The closest Hyundai dealerships right now are in:
- Gurnee
- Highland Park
- Palatine
- Kenosha, Wisconsin
Construction is expected to begin in the coming weeks. The property is estimated to be valued at $10 million when the project is complete.
Hyundai projected selling 100 new cars and 50 used cars a month. A fiscal impact analysis presented to the village estimated taxable sales revenue of $50 million.
Auto sales are an important part of the local economy and sales tax received from the auto category accounts for little more than half of the revenue in the village's general fund which is used for day to day operations.
Automotive sales taxes received by the village have fluctuated during the last 20 years. They peaked at $5.7 million in 2001 and dipped to $3.89 million in 2020 but rebounded to $4.69 million in 2021.
In late 2008, the village approved an incentive to allow dealerships to recoup a portion of sales taxes to fund some of their rehab or expansion costs. The village rebates as much as 60% of any new sales tax revenue, based on prior sales.
CESM LLC was the first eligible dealer to seek the sales tax rebate in 2011 when they were doing business as Liberty Chevrolet. It is unknown at this time if an incentive will be sought for the Hyundai project.
