Richton Park to consider tax package aimed at luring Wal-Mart
By Casey Toner email@example.com February 9, 2014 10:00PM
Updated: March 11, 2014 6:31AM
Wal-Mart may be coming to Richton Park and leaving Matteson, according to a memo on Richton Park’s website.
The Richton Park village board is set to discuss giving a financial package worth $11 million to the national retail giant during Monday’s meeting at 7 p.m., 4455 Sauk Trail.
The 24-hour store would be located on the undeveloped southwest corner of Sauk Trail and Interstate 57, according to a memo from village manager De’Carlon Seewood to the village board. The store would open sometime in 2016.
Wal-Mart sees the Richton Park project as the “replacement,” for the big box store’s site located a little less than two miles away at 21410 Cicero Ave., Matteson, according to the memo.
The development would be located within a special taxing district that uses property tax money to pay for infrastructure upgrades among other costs, Seewood wrote. Property taxes generated from the Wal-Mart site may exceed $1 million annually.
According to the memo, Wal-Mart would receive 95 percent of the site’s property taxes for about 13-years after it opens under the proposal’s terms.
In addition, the proposal calls for the village to share half of the store’s annual sales tax proceeds — $437,250 — with Wal-Mart for 20 years or until the total project cost plus interest is reached, Seewood wrote. The store is expected to generate $874,500 in annual sales tax during the first few years.
“(The village attorney) is of the opinion that Wal-Mart drives a hard bargain as it relates to a fixed formula for return on investment,” Seewood wrote.
The Richton Park village board will review the full agreement during its Feb. 24 meeting.
Matteson village manager Brian Mitchell and a Wal-Mart spokesman could not be reached for comment.