At its regular board meeting on Monday, October 26, 2020, the Village of Barrington Board of Trustees approved an economic incentive agreement that will bring the Des Plaines Honda motorcycle dealership to Barrington.
“Given the impact that Covid-19 has had on many of our businesses in 2020, this type of positive economic news in Barrington could not be more welcome at this time,” said Village President Karen Darch. “We are pleased to welcome Des Plaines Honda to our area. This established dealership’s offerings of top-line motorcycles, watercraft, and all-terrain utility vehicles will address an unfilled market niche in Barrington’s business sector and bring much-needed additional sales tax revenue into the Village.”
Des Plaines Honda will be located at 1201-1203 S. Northwest Highway. Village Manager Scott Anderson said, “Because sales tax revenue from motor vehicle sales makes up approximately 25% of the Village’s general operating funds, this is an important step forward in promoting the economic health of Barrington, including in the Route 14 corridor. We could not be more pleased to be working so cooperatively with Des Plaines Honda to expand our business base in Barrington.”
The incentive agreement is based upon a 60% retainment of sales tax revenues for Des Plaines Honda up to a capped maximum of $375,000 in verified eligible capital site improvements. The term of the agreement is either the attainment of the $375,000 in incentive payments or ten years, whichever is sooner. The Village will retain 40% of sales tax revenues through the term of the agreement, and then 100% once the agreement has expired. Des Plaines Honda is expected to bring 20 to 22 new employees to the Village.
The Village of Barrington has historically worked with motor vehicle dealerships in Barrington who have requested similar capital expansion incentive agreements, due to the fact that dealers are some of the Village’s largest employers and generators of sales tax and are critically important to Barrington’s economic base.
President Karen Darch said, “We are confident that the dealership's capital investments will bring significant new sales growth to their business, and in turn, new sales tax revenues to the Village that we would not have otherwise enjoyed. After the term of the agreement is up, the Village will retain 100% of all sales tax revenue from the business. Coupled with the dealership’s ability to bring new jobs to our community and new shoppers as well, we believe this is an important step for the Village of Barrington to take in order to continue to ensure the economic vitality of our area.”